We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks
CAF.V - Canaf Group Inc.
An SI Board Since March 2017
Posts SubjectMarks Bans Symbol
58 3 0 CAF.V
Emcee:  JRod77 Type:  Moderated
CAF.V – Canaf Group Inc. Due Diligence Report

Price: $0.07
Common Shares: 47,426,195
Options/Warrants: Nil
Insider Holdings: 15,391,328 or 32.5% as per

Financials (All in US Dollars – Should Be Converted into CDN Dollars for accurate value)


Cash: $595,806
Trade Receivables: $1,298,566
Tax Receivable: $5,904
Inventories: $393,373
Prepaid Expenses: $28,526
Property, Plant & Equipment: $1,197,093
Intangible: $1
Total Assets: $3,519,269 ($4,700,511 CAD as of March 20th 2017)


Trade Payables: $1,130,333
Income Tax: $939
Current Portion of bank loan: $225,758
Total Bank Loan: $403,126
Deferred Tax: $91,918
Total Liabilities: $1,852,074 ($2,473,722 CAD as of March 20th 2017)

Asset/Debt Ratio: 1.9:1

Revenue over the last 4 quarters
Date – Sales - Profit(Loss)
Q1 2017 - $2,991,706 – Net Income of $197,691
Q4 2016 - $1,796,330 – Net Income of $136,764
Q3 2016 - $1,126,582 – Net Income of $19,945

Q2 2016 - $757,843 – Net Loss of ($41,382)

From MD&A: The summary above demonstrates a return of the Corporation to three consecutive quarters of increasing revenue and net profit. The increase in sales has been generated by an increase in Quantum’s product demand, which has been caused by not only a reduction of availability of coke, and coke related products within South Africa, but also due to a slight return to confidence in the local steel and manganese markets. Despite the Corporation feeling that there remains room for more confidence to return to these markets, the outlook for the remainder of the year remains relatively strong.

MD&A Highlights

The Corporation is very pleased to confirm strong results for the 3-month period end January 31, 2017, as forecasted. The results demonstrate the continued strong turnaround of the Corporation’s South African business, Quantum.

Revenue for the 3-month period increased to $2,991,706; an increase of 193% in comparison to the same quarter last fiscal year, and up 67% from the previous quarter ended January 31, 2017. The Company expects sustained levels of revenue during Q2 2017, as demand for Quantum’s product remains strong in South Africa.

During the quarter, the Corporation recorded a net income of $197,691 (C$259,579), in comparison to a net loss of $294,482 for the same quarter the previous year. Adjusted EBITDA rose to $569,300 (C$747,517) for the quarter.

The Corporation is currently in discussions with major customers to secure new long-term contracts for a period of 2 years, which will provide security of sales, and enable the business to further invest in cost saving modifications for the operation.

The recent results further confirm the Corporation’s strong position as a carbon reductant supplier in South Africa. Quantum is one of a few suppliers of a low volatile reductant, a situation, which has allowed the entity to emerge as a key player in the country.

The outlook and profitability for the coming year remains dependent on demand for the Corporation’s calcine product, which the Corporation believes looks far more promising than the previous fiscal year-end 2016. The Corporation intends to continue to generate positive free cash flow during the fiscal year-end 2017 and will focus on increasing shareholders’ value, as well as investment to improve the efficiency of its older facilities, or investment into related business opportunities in South Africa.

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 involved in a legal dispute with Kilembe Mines Limited, (“KML”). In January 2013, the High Court of Uganda referred the case back to arbitration for settlement. On May 29, 2013, a preliminary meeting was held between the Corporation, KML and the arbitrator.

The Corporation can confirm that further meetings were scheduled for August 2013, after filings of amended statements of defence and claims had been submitted. Since the initial meeting however the Government has awarded a deal to a Chinese Consortium to manage and operate KML. The Corporation’s appointed Ugandan Advocates have notified the board that the Arbitrator has stepped down for personal reasons. The Company’s Uganda Advocates and the Government’s Solicitor General have agreed to a new Arbitrator, Retired Justice James Ogoola. The parties held a preliminary meeting with the Arbitrator who requested them to provide him with their fee estimate for the conduct of the Arbitration. The estimate has since been provided to the Arbitrator who is yet to confirm whether or not he is agreeable to it.

In the meantime the Company appointed SRK Consultants to prepare a brief document to quantify the ‘lost opportunity’ value of the termination of the Kilembe Project. During the current financial year the Company will utilize this document to assist in the submission of a revised claim against KML. The Company has received no new information since 2014, and the Company remains unable to give an indication of either the quantum or any likely date by which a settlement will or will not be reached. The original claim, before costs, is for a money sum of US$10,370,368 as at January 24, 2007.

Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
58Good to see CAF back at a 18 month high. Company has $4 million in assets vs $50JRod77-9/2/2020
57CANAF ANNOUNCES FINANCIAL RESULTS FOR Q3 2019 2019-09-24 15:32 MT - News ReleasJRod77-9/25/2019
56Two news releases over the last couple days: Canaf announces share purchases byJRod77-7/31/2019
55CAF.V 12 Year Performance Chart Image: [graphic]JRod77-4/20/2019
54Canaf Investments registers South African subsidiaries 2019-04-15 10:50 MT - NeJRod77-4/15/2019
53Canaf Investments Inc. Q1 2019 Results. Financials + MD&A Ending January 31sJRod77-3/27/2019
52Canaf Investments earns $187,367 (U.S.) in Q1 2019-03-26 09:53 MT - News ReleasJRod77-3/26/2019
51Canaf Investments Inc. 2018 Year End Results. Financials + MD&A Ending OctobJRod77-3/2/2019
50Canaf Investments earns $623,884 (U.S.) in fiscal 2018 2019-02-28 08:24 MT - NeJRod77-2/28/2019
49CAF numbers are out. Asset/Debt ratio keeps looking better and better, yet we trJRod77-2/28/2019
48Canaf announces full repayment of term loan and award of B-BBEE rating 2019-01-JRod77-1/21/2019
47More insider buying =CAF]
46CAF Insider Buying This Week =CAF]
45Article: Anthracite Coal Market Heating Up Due To Global Demand & Supply IssJRod77-9/30/2018
44 Canaf Group Inc.(CAF.V) Q3 2018 Results. Financials + MD&A Ending July 31sJRod77-9/26/2018
43Canaf Investments earns $635,257 (U.S.) in nine months 2018-09-26 07:15 MT - NeJRod77-9/26/2018
42Sept 3rd 2018 - R14bn deal between SA and China will enable economic growth - ciJRod77-9/10/2018
41Canaf finalizes subsidiary Southern Coal B-BBEE deal 2018-08-15 11:12 MT - NewsJRod77-8/15/2018
40China to invest $15 billion in South African economy China to invest $1JRod77-7/25/2018
39Canaf Group appoints Williams to board, as CFO 2018-07-19 07:57 MT - News ReleaJRod77-7/19/2018 What You Must Know About Canaf Investments Inc’s (CVE:CAF) FinancJRod77-7/13/2018
37Canaf Group to sell 30% of unit for $1.7M 2018-07-06 10:44 MT - News Release MJRod77-7/6/2018
36Canaf Group changes name to Canaf Investments 2018-07-03 18:11 MT - News ReleasJRod77-7/4/2018
35Canaf Group Inc.(CAF.V) Q2 2018 Results. Financials + MD&A All information cJRod77-6/29/2018
34Canaf Group earns $691,115 (U.S.) in six months 2018-06-28 14:56 ET - News ReleJRod77-6/29/2018
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):