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   Microcap & Penny StocksCAF.V - Canaf Group Inc.


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From: JRod779/10/2018 10:45:51 AM
   of 57
 
Sept 3rd 2018 - R14bn deal between SA and China will enable economic growth - citizen.co.za

Key notes: South Africa’s Department of Trade and Industry and China’s National Development and Reform Commission also pledged to cooperate on international investment promotion for the African country’s special economic zones and industrial parks, including a 4 600 MW coal-fired plant, a cement plant, and other metallurgical projects. “The projects will see the investment, planning, constructing and operation of coking, ferromanganese, ferrochromium, silico-manganese, stainless steel, supporting administrative service centre and living areas, highways, and a shipping integrated logistics centre among others,” the Presidency said.

Sept 4th 2018 - Is metallurgical coal the next big goldmine for Asian investors? - sbr.com.sg

Don't forget this article as it's crucial to seeing how badly China wants to secure metallurgical coal in South Africa:

July 27th 2018 - Chinese investors plan $10 billion metallurgical complex in South Africa - reuters.com

CAF is now in it's diversification phase as mentioned in prior news releases over the summer. The metallurgical coal industry is very profitable and those funds can be deployed elsewhere, perhaps in another mining venture.

Steel and ferromanganese are created from the product out of Canaf's facility, which are currently at record production due to global demand

Sept 10 2018 - Manganese takes pole position in ARM’s earnings surge - engineeringnews.co.za

Also a reminder that CAF Q3 results will be out in a few weeks or sooner.

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From: JRod779/26/2018 10:31:53 AM
   of 57
 
Canaf Investments earns $635,257 (U.S.) in nine months

2018-09-26 07:15 MT - News Release

Mr. Christopher Way reports

CANAF ANNOUNCES FINANCIAL RESULTS FOR Q3 2018

Canaf Investments Inc., formerly known as Canaf Group Inc., has released its financial statements and management discussion and analysis for the nine-month period ended July 31, 2018.

Revenue for the nine-month period ended July 31, 2018, increased to $12,137,604 (U.S.), an increase of 43.7 per cent compared with the same period last fiscal year, which generated a net comprehensive income of $635,257 (U.S.) (2017: $622,730 (U.S.)).

For more details and discussion on the results, the financial statements and management discussion and analysis can be viewed on SEDAR or the corporation's website.

About Canaf Investments Inc.

Canaf is a public company listed on the TSX Venture Exchange. Canaf's head office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100 per cent of Quantum Screening and Crushing, a South African-based company that owns 70 per cent of Southern Coal.

We seek Safe Harbor.

© 2018 Canjex Publishing Ltd. All rights reserved.

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From: JRod779/26/2018 11:10:12 AM
   of 57
 
Canaf Group Inc.(CAF.V) Q3 2018 Results. Financials + MD&A
Ending July 31st 2018. All information can be found at www.sedar.com



TSXV Symbol: CAF - OCTBB Symbol: CAFZF


Price: $0.11
Common Shares: 47,426,195
Insider Holdings: 12,304,085 or 26% - Majority Owned By CEO & Family
Warrants/Options: 0
Website: www.canafgroup.com

Financials (All In US Dollars)

ASSETS
Cash: $1,252,240
Trade Receivables: $1,682,075
Sales Tax Receivable: $20,078
Inventories: $685,983
Prepaid Expenses: $25,496
Property & Equipment: $808,845
Intangible: $1
Total Assets: $4,474,719

LIABILITIES
Trade Payables: $1,684,853
Sales Tax Payable: -$859
Income Tax Payable: $72,029
Current Portion Of Bank Loan: $174,801 - Due Jan 2019
Total Liabilities: $1,930,824

Q1-Q3 Performance
Sales: $12,137,604
Gross Profit: $933,187
G&A Expenses: ($444,535)
Interest Income: $53,645
Income Tax Expense: ($26,192)
Foreign Currency Gain: $119,153
Net Income For 2018: $635,257

Management Discussion & Highlights

OVERALL PERFORMANCE AND OUTLOOK

Revenues for the nine months were $12,137,604 (2017 - $8,443,667) a 43.7% increase, and the Corporation continues to
be profitable with gross profits of $933,187 (2017 - $889,225) a 4.9% increase and net income for nine month period
ended July 31, 2018 of $516,105 (2017 - $595,716) a 13% reduction. While revenues and gross margin have grown,
increased cost of sales produced smaller gross margin percentages, 2018 7.7% (2017 10.5 %). The reduction in the gross
margin is mainly due to major maintenance and re-commissioning costs during the period as well as various one off
costs.

The Corporation expects to continue to operate profitably into Q4, however Revenue is expected to reduce slightly as
demand for calcine reduces slightly due to a slowing in manganese and steel production downstream of the supply chain.
The Corporation cannot be sure of how long this slight reduction in demand will continue for, however remains
confident that Southern Coal will continue to operate profitably as it continues to work with a potential new customer
with the intention to secure a new long-term supply contract.

Whilst continuing to ensure that Southern Coal continues to generate free cash flow, the Corporation is also actively
exploring new opportunities in South Africa and its neighbours, as it accumulates cash and reduces its gearing; from

January 2019 Southern Coal will have completed the repayment of the 14 million Rand loan with ABSA which will
add approximately $26,000 per month to its cash-flow.

The Corporation’s B-BBEE transaction for the sale of 30% of Quantum’s shares in Southern Coal for 18 million Rand
was completed during the quarter. This marks a significant milestone in the strategic plan to bring Southern Coal’s BBBEE
rating in line with its existing and potential new customers’ requirements. The revised effective date for the
transaction is 01 August 2018.

BROAD-BASED BLACK ECONOMIC EMPOWERMENT TRANSACTION (B-BBEE)

As part of Southern Coal’s B-BBEE transformation program, Amandla Amakhulu (Pty) Ltd., (“AAM”), a 100% black,
privately owned, and ringfenced, company incorporated in South Africa, acquired 30% of the issued shares of Southern
Coal, from Canaf’s wholly owned subsidiary, Quantum, for the value of 18 million Rand. The revised effective date
for the transaction is 01 August 2018.

Quantum in return received cumulative, redeemable preference shares in AAM in the amount of the purchase price.
These preference shares shall provide preferential dividends, until redeemed by AAM. These dividends will be secured
by an irrevocable direction from AAM to Southern Coal to pay Quantum such dividends from any distribution to
AAM.

CLAIM AGAINST KILEMBE MINES LIMITED

In August 2006, Canaf, then known as Uganda Gold Mining, announced the termination of any further investment into
its Kilembe Copper-Cobalt Project in Uganda. Since 2007, the Corporation has been engaged in an arbitration with
Kilembe Mines Limited, (“KML”), whereby the Corporation seeks general damages, special damages and costs of the
arbitration from KML for breach of contract.

The legal work, carried out by MMAKS Advocates, Kampala, against KML is at no cost to the Corporation, but any
award in won by MMAKS efforts will be distributed to both MMAKS and Canaf.

Despite the fact that the claim against KML Corporation remains active, the Corporation is unable to give an indication
of either the quantum or any likely date by which the arbitration will be concluded.

Sales

Revenue for the nine months was $12,137,604 (2017 - $8,443,667), 44% increase due to high demand for Southern
Coal's calcine product from both of its main customers, particularly in Q2. The Corporation is confident that
Sales will remain at profitable levels in to Q4, however expects to see a slight reduction in comparison
to Q3, as demand falls off slightly.

Expenses

Expenses for the nine months were $444,535 (2017 - $237,288) an increase of $89,286, 25%, primarily due to
increased costs relating to the B-BBEE program and major maintenance costs on Southern Coal’s old calcining
facilities. Other one off expenses that were incurred during the period were legal costs relating to the Corporation’s
name change, as well as back dated rent for Southern Coal’s premises which were negotiated at approximately $20,000.
General administrative and finance expenses for the nine month period were $418,788 (July 31, 2017 - $312,829) an
unfavorable variance of $105,959, primarily due to increased involvement in South Africa’s B-BBEE program and
increased activity resulting in higher management fees and office expenses. The Corporation incurred extra
management and consultant fees due to the passing of its previous CFO, Zeny Manalo as well as transitional costs
associated with the resignation and appointment of its CFO during the year. The Corporation does not expect any further
extra ordinary management or consultant fees going forward.

Comprehensive Income

The Corporation is not subject to currency fluctuations in its core activities however the Corporation is subject to
transactions in various currencies and the volatility in international currency markets does have an impact on some
costs and the translation into US$ the reporting currency of the Corporation. The current period comprehensive gain on
foreign exchange in the amount of $119,153 (2017 - $27,014) is primarily as a result of the translation into US$ the
reporting currency. As at July 31, 2018 the Corporation has net comprehensive gain of $635,257 (July 31, 2017 -
$622,730.) The Corporation does not hedge net asset translation movements.

LIQUIDITY AND CAPITAL RESOURCES

At July 31, 2018, the Corporation had cash of $1,252,240 (October 31, 2017 - $453,609) and working capital of
$1,735,049 (October 31, 2017 - $1,098,726). Surplus cash and cash equivalents are deposited in interest accruing
accounts.


Working capital components include cash in current or interest bearing accounts, trade and other receivables, sales tax
receivable, inventories and prepaid expenses and deposits, trade and other payables, sales tax payable, income tax
payable, and current portion of long-term debt.


Trade receivables and trade payables are expected to increase or decrease as sales volumes change.





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From: JRod779/30/2018 9:50:46 PM
   of 57
 
Article: Anthracite Coal Market Heating Up Due To Global Demand & Supply Issues

news-australia-today.com

Anthracite Market Analysis to 2023 | Top 10 Companies, Trends, Growth Factors, Business Development and Industry Analysis

SEPTEMBER 28, 2018 BY MARKET RESEARCH FUTURE IN ANTHRACITE MARKET, MARKET · 0 COMMENT

Anthracite is the high-level ranking coal because it is rigid, carbon concentrated, has less moisture content, and burns efficiently than other coals. Due to its excess carbon storage and low volatiles, anthracite is more reactive and efficient with respect to energy released than the lower–ranked coals and consequently has a lower environmental impact due to the lower greenhouse gas emissions. Urbanization of the emerging economies is resulting in the largest migration of people in human history. The infrastructure required to support the resulting rapid growth is creating unprecedented demand for steel and the anthracite coal needed to produce it. Combined with declining coal reserves it is expected that there will be long-term global shortage of metallurgical coals. Approximately 500 million tons of new annual metallurgical coal production will be required by the end of the decade to service the growth in demand.

Get sample report now @ https://www.marketresearchfuture.com/sample_request/2742

Global Top 10 Key Players

Key players of the global Anthracite market are: Blaschak Coal Corporation (US), Lehigh Anthracite (US), Atlantic Coal Plc. (UK), Atrum Coal Ltd (Australia), Celtic Energy (US), Vietnam National Coal-Mineral Industries Group (US), Sadovaya Group (Europe), Vostok Coal (Russia), Siberian Anthracite (Russia), Robindale Energy Services, Inc. (U.S) and others.

Anthracite Market – Intended Audience

Anthracite manufacturersTraders and distributors of AnthraciteProduction Process industriesPotential investorsRaw material suppliersNationalized laboratoryRegional analysis:

The global anthracite market is classified on the basis of mixed geographic segmentation which involves regions such as America, Europe, Asia-Pacific, Middle East and Africa. Out of all, Asia Pacific Anthracite market is largest market owing to robust industry growth of application industry in China, Japan and India. At a time Vietnam and Ukraine were the biggest exporters of anthracite are quickly decreasing from the market with their combined exports. The rapid decrease in anthracite exports appears unable to be supplied from other major exporters in Russia and South Africa, resulting in a tight supply and demand dynamic, creating a strong price environment.

China is major dominating country owing to large scale production of end user industries such as metallurgy and power & energy. Russia led to the second position in terms of producing anthracite followed by Ukraine, Vietnam, Korea, South Africa, US, and others. While the major exporter of anthracite in decreasing order are Vietnam, Russia, China, North Korea, South Africa, US, Germany, UK, and others. On the other hand the major importers of anthracite in decreasing order are China, Japan, South Korea, France, Belgium, Bulgaria, Brazil, and others.

Browse Complete Report at https://www.marketresearchfuture.com/reports/anthracite-market-2742

Mining of high-quality anthracite occurs mainly in China, Russia, South Africa, Ukraine, the United States and Vietnam. There is sizeable production in some western European countries, but the quality is primarily suitable only for power generation. In terms of exporting, countries such as Russia and Ukraine have become the dominant suppliers to world markets over the past seven years due to their lower production costs. In Asia, Russia is constantly replacing China and Vietnam in various markets. In the western region, Ukraine is becoming the important anthracite supplier.

Russia has emerged in recent years as the key anthracite supplier to Europe and other markets around the world. Production in Ukraine has been affected by the conflict in the east of the country since 2014 but may recover from now on. Vietnam’s position as world supplier is continuous decaling due to its high cost producing charges. Other sources such as South Africa and the United States focus primarily on their domestic markets, with small exports.

Segmentation

The global Anthracite market is majorly segmented on the basis of application, end users and region. Based on application of Anthracite the market is segmented into fuel, steel making, sinter plants, indurating furnaces, furnace coal replacement, and others. Based on end user the market segmented steel , energy & power, bricks, silicon & glass, synthetic fuels, others and based on region market is segmented into North America, Europe, APAC, Latin America, Middle East & Africa.

The post Anthracite Market Analysis to 2023 | Top 10 Companies, Trends, Growth Factors, Business Development and Industry Analysis appeared first on Herald Keeper.

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From: JRod7710/25/2018 11:19:49 PM
   of 57
 
CAF Insider Buying This Week

=CAF]https://ceo.ca/api/sedi?insider=&symbol=CAF&date=&transaction=&amount=&undefined[company_symbol]=CAF

DateIssuerInsiderTransactionAmountNew TotalRecent filingsFiling date: 2018-10-24

Transaction: 2018-10-24 $CAF
Canaf Investments Inc. (formerly Canaf Group Inc.) Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market $7,440
+93,000 vol
$0.08 each4,850,800Older filingsFiling date: 2017-04-27

Transaction: 2017-04-27 $CAF
Canaf Group Inc. Way, David

4 - Director of Issuer
Options
52 - Expiration of options
-500,000 vol0Filing date: 2016-12-17

Transaction: 2016-12-16 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$4,500
+75,000 vol
$0.06 each4,757,800Filing date: 2016-12-15

Transaction: 2016-12-14 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$600.00
+10,000 vol
$0.06 each4,682,800Filing date: 2016-12-10

Transaction: 2016-12-09 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$60.00
+1,000 vol
$0.06 each4,672,800Filing date: 2016-12-08

Transaction: 2016-12-08 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$1,210
+22,000 vol
$0.055 each4,671,800Filing date: 2016-12-08

Transaction: 2016-12-07 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$275.00
+5,000 vol
$0.055 each4,649,800Filing date: 2016-12-08

Transaction: 2016-12-07 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$700.00
+14,000 vol
$0.05 each4,644,800Filing date: 2015-10-19

Transaction: 2015-10-19 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
11 - Acquisition or disposition carried out privately$31,500
+450,000 vol
$0.07 each4,630,800

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From: JRod7711/15/2018 9:33:48 AM
   of 57
 
More insider buying

=CAF]https://ceo.ca/api/sedi?insider=&symbol=CAF&date=&transaction=&amount=&undefined[company_symbol]=CAF

Filing date: 2018-11-14

Transaction: 2018-11-14 $CAF
Canaf Investments Inc. (formerly Canaf Group Inc.) Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$7,950
+100,000 vol
$0.0795 each4,950,800Older filingsFiling date: 2018-10-24

Transaction: 2018-10-24 $CAF
Canaf Investments Inc. (formerly Canaf Group Inc.) Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$7,440
+93,000 vol
$0.08 each4,850,800Filing date: 2017-04-27

Transaction: 2017-04-27 $CAF
Canaf Group Inc. Way, David

4 - Director of Issuer
Options
52 - Expiration of options
-500,000 vol0Filing date: 2016-12-17

Transaction: 2016-12-16 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$4,500
+75,000 vol
$0.06 each4,757,800Filing date: 2016-12-15

Transaction: 2016-12-14 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$600.00
+10,000 vol
$0.06 each4,682,800Filing date: 2016-12-10

Transaction: 2016-12-09 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$60.00
+1,000 vol
$0.06 each4,672,800Filing date: 2016-12-08

Transaction: 2016-12-08 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$1,210
+22,000 vol
$0.055 each4,671,800Filing date: 2016-12-08

Transaction: 2016-12-07 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$275.00
+5,000 vol
$0.055 each4,649,800Filing date: 2016-12-08

Transaction: 2016-12-07 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$700.00
+14,000 vol
$0.05 each4,644,800Filing date: 2015-10-19

Transaction: 2015-10-19 $CAF
Canaf Group Inc. Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
11 - Acquisition or disposition carried out privately$31,500
+450,000 vol
$0.07 each4,630,800

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From: JRod771/21/2019 12:30:40 PM
   of 57
 
Canaf announces full repayment of term loan and award of B-BBEE rating

2019-01-21 10:03 MT - News Release

Mr. Christopher Way reports

CANAF ANNOUNCES FULL REPAYMENT OF TERM LOAN AND AWARD OF B-BBEE RATING

Canaf Investments Inc.'s majority-owned South African subsidiary, Southern Coal Pty Ltd., has fully repaid a term loan. Canaf has been awarded a level 4 broad-based black economic empowerment (B-BBEE) rating.

On 07 January 2019, Southern Coal (Pty) Ltd., ("Southern Coal") the Corporation's majority owned South African subsidiary, made its final payment for the 14 million Rand loan from ABSA bank, which was drawn down in February 2015. Repayment of this loan now releases Southern Coal from monthly instalments of approximately 392,000 Rand (approx. C$37,000 or US$28,000), which the Corporation plans to allocate to future diversification or expansion projects.

On 21 January 2019, and further to the Corporation's announcement on 15 August 2018, Southern Coal was awarded a Level 4, B-BBEE rating. Christopher Way, Chief Executive Office of Canaf, states, "Achieving a Level 4 rating is a proud achievement for Southern Coal, and now frees up the company's ability to engage in long-term agreements with existing and new potential customers."

The achievement of both the repayment of debt and the award of a Level 4 B-BBEE rating further strengthens the Corporation's financial and strategic position, as it looks at new investment and expansion opportunities.

About Canaf

Canaf is a public company listed on the TSX-V Exchange. Canaf's registered office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., ("Quantum"), a South African based company that owns 70% of Southern Coal (Pty) Ltd., ("Southern Coal"), a company that produces a high carbon, de-volatised (calcined) anthracite.

About Southern Coal

Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through rotary kilns, at temperatures between 900 and 1100 degrees centigrade; the volatiles are driven off and the effective carbon content increased.

Southern Coal's two largest clients are African leaders in steel and ferromanganese production. Southern Coal operates near Newcastle, KwaZulu-Natal, where Quantum's three kilns operate; the majority of Southern Coal's feedstock anthracite is supplied from local anthracite mines in KwaZulu-Natal.

We seek Safe Harbor.

© 2019 Canjex Publishing Ltd. All rights reserved.

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From: JRod772/28/2019 10:31:11 AM
   of 57
 
CAF numbers are out. Asset/Debt ratio keeps looking better and better, yet we trade at a lower price compared to last year? Some USD/Rand fluctuations, but we know that they paid off all the bank debt in Q1 2019 so odds are another profitable quarter will be announced next month.

Year Revenue($USD) Profit/Loss $USD) Assets ($USD) Liabilities ($USD) Asset/Liability Ratio Net Asset Value ($USD)
2007 $6,193,884 -$721,465 $7,203,120 $4,822,980 1.49 $2,380,140
2008 $9,038,397 -$2,639,324 $3,134,842 $3,336,654 0.94 -$201,812
2009 $4,561,417 -$539,609 $3,270,899 $3,239,579 1.01 $31,320
2010 $11,807,383 $551,552 $3,734,633 $3,006,923 1.24 $727,710
2011 $13,336,725 $574,766 $3,704,897 $2,673,936 1.39 $1,030,961
2012 $10,882,074 $126,169 $4,029,063 $2,871,933 1.40 $1,157,130
2013 $14,969,633 $557,797 $4,141,224 $2,426,297 1.71 $1,714,927
2014 $13,257,224 $201,330 $3,597,561 $1,681,304 2.14 $1,916,257
2015 $9,156,927 -$285,218 $3,512,225 $1,881,186 1.87 $1,631,039
2016 $4,703,528 -$162,065 $2,729,318 $1,260,344 2.17 $1,468,974
2017 $10,699,117 $439,664 $3,315,232 $1,406,594 2.36 $1,908,638
2018 $14,673,658 $298,144 $4,774,437 $1,178,597 4.05 $3,595,840

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From: JRod772/28/2019 12:00:07 PM
   of 57
 
Canaf Investments earns $623,884 (U.S.) in fiscal 2018

2019-02-28 08:24 MT - News Release

Mr. Christopher Way reports

CANAF ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDED 31 OCTOBER 2018

Canaf Investments Inc. has released its financial statements, and management discussion and analysis for the year ended Oct. 31, 2018.

For the year, revenue increased to $14,673,658 (U.S.) from $10,699,117 (U.S.) the previous year, and the corporation recorded a net profit of $623,884 (U.S.) in comparison to $541,808 (U.S.) the previous year. Earnings before interest, taxes, depreciation and amortization for the year was recorded at $1,028,094 (U.S.) or approximately $1.35-million.

Christopher Way, chief executive officer, states: "The annual results reflect another solid performance from the corporation's majority owned subsidiary, Southern Coal. During they year we successfully completed a strategic and important Broad-Based Black Empowerment transaction and we are now a cash-flow-positive business with zero long-term liabilities. The corporation will continue to focus its attention at making efficiencies within its South African business, as well as looking for new markets and diversification opportunities."

For more details and discussion on the results, the financial statements and management discussion and analysis can be viewed on SEDAR or the company's website.

About Canaf Investments Inc.

Canaf is a public company listed on the TSX Venture Exchange. Canaf's registered office is in Vancouver, B.C., Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100 per cent of Quantum Screening and Crushing Pty. Ltd., a South African-based company that owns 70 per cent of Southern Coal.

About Southern Coal

Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through rotary kilns, at temperatures between 900 and 1,100 degrees centigrade; the volatiles are driven off and the effective carbon content increased.

We seek Safe Harbor.

© 2019 Canjex Publishing Ltd. All rights reserved.

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From: JRod773/2/2019 1:04:20 PM
   of 57
 
Canaf Investments Inc. 2018 Year End Results. Financials + MD&A
Ending October 31st 2018. All information can be found at www.sedar.com

Q1 2019 result will be released end of March 2019.

TSXV Symbol: CAF - OCTBB Symbol: CAFZF

Price: $0.09
Common Shares: 47,426,195
Insider Holdings: 12,304,085 or 26% - Majority Owned By CEO & Family
Warrants/Options: 0
Website: www.canafgroup.com

Financials (All In US Dollars)

ASSETS
Cash: $552,351
Trade Receivables: $1,240,730
Sales Tax Receivable: $4,559
Inventories: $836,551
Prepaid Expenses: $21,896
Property & Equipment: $868,059
Due From Non-Controlling Interest: $1,250,290
Intangible: $1
Total Assets: $4,774,437 (2017 - $3,315,232)

LIABILITIES
Trade Payables: $1,088,227
Income Tax Payable: $11,958
Bank Loan: $78,412 - Paid Jan 2019 as per the company press release
Total Liabilities: $1,178,597 (2017 - $1,406,594)

Asset/Debt Ratio: 4.05:1

2018 Performance
Sales: $14,673,658
Gross Profit: $1,171,328
Net Income: $298,144

Canaf Investments has added $737,808USD ($959,150CAD @ 1.30 Exchange) in net income over the last 8 quarters, established new business relationships with the acquisition of their BBEEE certificate that took a long time to receive, are diversifying the company as per the MD&A below, yet the price is still where it was two years ago, thus the price/earnings ratio is also very low. It says below in the MD&A that shareholders equity was pegged at $4.6 million CAD, which is today’s current market cap value. Almost all companies on the TSX/TSXV/CSE trade far beyond this value, thus giving Canaf an even bigger discount for no reason. Read all MD&A information below as there are numerous things happening with the company in 2019. There were also one time expenses such as BBEEE and company name change that increased expenses just for 2018.

MD&A Highlights (Management Discussion)

The Corporation reports another strong year of sales and earnings with revenues for the twelve months of $14,673,658 (2017: $10,699,117) a 37.1% increase, and gross profits of $1,171,328 (2017: $1,223,110) a 4.1% decrease. Net income for the year increased 15.1% to $623,884 (2017: $541,808).

An important achievement of the Corporation during the year was the sale of 30% of Quantum’s shares in Southern Coal for 18 million Rand, which enabled, and contributed, to Southern Coal achieving a Level 4 Broad-Based Black Economic Empowerment (“B-BBEE”) rating. Achieving this rating will enable Southern Coal to engage in long-term supply contracts with its customers. The Corporation can confirm that long-term (24 month) contracts with both its existing main customers should be renewed during Q2 and Q3, 2019.

During Q1 2019, the Corporation is pleased to confirm that a trial load of its calcined product was delivered to a new potential and significant customer. Trials will be ongoing into Q2 2019, and should this convert to an ongoing supply, the Corporation feels that there is potential to return to the revenue levels of the year ended October 31, 2018.

The Corporation expects to continue to operate profitably into 2019, however management expects revenues to be significantly reduced in comparison to the year ended October 31, 2018, mostly due to global pressure on the steel and manganese markets, which subsequently filters back to demand for Southern Coal’s product.

While revenues and net income have grown, gross margin suffered as Southern Coal experienced increased costs of production primarily due to increased cost of its anthracite feedstock material. The Corporation expects its gross margins to remain squeezed into next year. In addition to pressure from suppliers, the Corporation carried out major essential maintenance and re-commissioning during the year on one of its old calcining plants.

During Q1 2019, Southern Coal made its final payment for the 14 million Rand loan from ABSA bank, which was drawn down in February 2015. Repayment of this loan now releases Southern Coal from monthly installments of approximately 392,000 Rand (approx. C$37,000 or US$28,000), which the Corporation plans to allocate to future diversification or expansion projects. As of January 2019, the Corporation has zero long-term liabilities.

Whilst the Corporation reports another profitable and financially positive year, the board can confirm that it is actively looking for new opportunities that will offer long-term growth potential for shareholders, be it related to its existing anthracite calcining operation in South Africa or another new, and un-related, sector. With zero long-term debt, a strong balance sheet, and a cash flow positive business in South Africa, the Corporation believes it is in a good position to do so. In the meantime, the Corporation will continue to grow its shareholder’s equity, which as of October 31, 2018, stands at approximately $3.5 million (C$4.6 million).

BROAD-BASED BLACK ECONOMIC EMPOWERMENT TRANSACTION (B-BBEE)

As part of Southern Coal’s B-BBEE transformation program, Amandla Amakhulu (Pty) Ltd, (“AAM”), a 100% black, privately owned, and ringfenced, company incorporated in South Africa, acquired 30% of the issued shares of Southern Coal, from Canaf’s wholly owned subsidiary, Quantum, for the value of 18 million Rand. The financial effective date for the transaction is 01 August 2018. Quantum in return received cumulative, redeemable preference shares in AAM in the amount of the purchase price. These preference shares shall provide preferential dividends, until redeemed by AAM. These dividends will be secured by an irrevocable direction from AAM to Southern Coal to pay Quantum such dividends from any distribution to AAM.

CLAIM AGAINST KILEMBE MINES LIMITED

In August 2006, Canaf, then known as Uganda Gold Mining, announced the termination of any further investment into its Kilembe Copper-Cobalt Project in Uganda. Since 2007, the Corporation has been engaged in an arbitration with Kilembe Mines Limited, (“KML”), whereby the Corporation seeks general damages, special damages and costs of the arbitration from KML for breach of contract. The legal work, carried out by MMAKS Advocates, Kampala, against KML is at no cost to the Corporation, but any award in won by MMAKS efforts will be distributed to both MMAKS and Canaf. Despite the fact that the claim against KML Corporation remains active, the Corporation is unable to give an indication of either the quantum or any likely date by which the arbitration will be concluded.

Revenue for the year was $14,673,658 (2017: $10,699,117), 37.1% increase due to high demand for Southern Coal's calcine product from both of its main customers. Sales for the year-end October 31, 2019 are expected to reflect a significant reduction in comparison to the current year, assuming no new customers are secured. The expected reduction in sales is primarily down to global uncertainties in the steel and manganese markets that Southern Coal supplies in to. Despite the expected reduction in sales, management can confirm that it is working on ensuring that gross margins improve by implementing efficiencies in Sothern Coal’s operations.

Expenses for the year were $587,312 (2017: $504,788) an increase of $82,524, 16.3%, primarily due to increased costs relating to the B-BBEE program ($75,573) and necessary legal and administrative charges in relation to the Corporations name and jurisdiction changes in Canada, offset by reduced interest on the bank loan. The Corporation incurred extra management and consultant fees due to the passing of its previous CFO, Zeny Manalo as well as transitional costs associated with the appointment and resignation of Derick Sinclair, and appointment of Rebecca Williams as CFO during the year. The Corporation does not expect any further extra ordinary management or consultant fees going forward. Additional details of general and admin expenses can be found in the table below.

Finance Cost for the year were $27,853 (2017 $86,837) a favorable variance of $58,984 (68%) as a result of nearing the end of the loan period.

At October 31, 2018, the Corporation had cash of $552,351 (October 31, 2017: $453,609) and working capital of $1,477,490 (October 31, 2017: $1,098,726). Surplus cash and cash equivalents are deposited in interest accruing accounts. Working capital components include cash in current or interest bearing accounts, trade and other receivables, sales tax receivable, inventories and prepaid expenses and deposits, trade and other payables, sales tax payable, income tax payable, and current portion of long-term debt. Trade receivables and trade payables are expected to increase or decrease as sales volumes change

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