Topic: How To Invest

Pat: Can I have your views on Caledonia Mining please?

Article Excerpt

Caledonia Mining, $0.065, symbol CAL on Toronto (Shares outstanding: 500.2 million; Market cap: $32.5 million), owns a cobalt project in Zambia, a gold mine in Zimbabwe and a platinum/nickel exploration project in South Africa. In the three months ended September 30, 2009, the company earned $862,000, or $0.0017 a share, on revenue of $4.9 million. It holds cash of $2.3 million, or $0.0045 a share. Caledonia’s revenue-producing properties entail considerable political and currency risk. The company’s low share price also makes it difficult to raise capital for expansion without diluting existing shareholders’ interests. Caledonia already has 500.2 million shares outstanding. Caledonia is okay to hold, but only for highly aggressive investors, and only with money you are prepared to lose. lose. …