Vancouver, BC -- (SBWIRE) -- 09/18/2014 -- Canaf Group, (“Canaf”) the publicly listed company on the TSX Venture Exchange, (TSX-V: CAF) is now benefiting from sustainable and organic growth due to the new opportunities generated through its South African anthracite coal beneficiation operation.
Following the Company’s incorporation over a decade ago, the Company explored a number of different mining opportunities in Africa – which helped the Company define its future and manoeuvre the direction of the Company away from riskier ‘blue sky’ opportunities to focus on growing the Company’s core asset, Quantum Screening & Crushing (Pty) Ltd., (“Quantum”), which it acquired in 2007.
Quantum is a South African company that processes anthracite coal into a coke replacement by processing it through two heated kilns. Quantum’s impressive client base currently includes BHP Billiton and ArcelorMittal SA who use the product as a replacement to coke in the sintering process for the production of manganese and steel respectively. The Company is now looking to expand Quantum’s market share by increasing its production, and increase its margins by implementing new more efficient equipment.
Over the past four years Canaf shareholders’ equity for its 47million issued shares has grown from US$0.04m in 2009 to US$1.8m for the year ended Oct 31, 2013, when the Company announced a year-end net profit after tax of US$0.84m; shareholder equity for the Company is expected to far exceed US$2m for the year-end October 31, 2014.
Christopher Way, CEO, says: “After some expensive knocks in the mining exploration sector, the board decided to focus on its core asset [Quantum]; for the past three and a half years we’ve been focused on decreasing approximately US$1million of our long-term debt and debentures [which will be cleared in October 2014]. Throughout this year, the Company has accumulated cash, and further expanded and invested in the South African business organically. Shareholders’ equity has subsequently increased dramatically. The Company is now in a very secure financial position and I am excited by the opportunities that are presenting themselves. I strongly believe that we have earned the respect in our niche market to take the business to the next level and seek strategic investments in related businesses – investments that are not so far removed from our own business that we expose the Company by lacking knowledge in the field of any investment. The Company is now is a position to fully focus on its long-term, sustainable growth.”
As at close of trading on September 15, 2014, the Company was trading at C$0.08, valuing the Company at only C$3.8million.
About Canaf
Canaf is a junior mining related group based in Vancouver, Canada, and with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., a South African based company that produces a high carbon, de-volatised anthracite.
About Quantum
Quantum Screening and Crushing (Pty) Ltd’s is one of South Africa’s largest producers of calcined anthracite, a product primarily used as a replacement to coke in the manufacturing process of steel and manganese. The company’s two largest clients are ArcelorMittal and BHP Billiton, world leaders in steel and manganese production respectively. Quantum has a plant in Newcastle, KwaZulu Natal, where its two kilns operate around the clock de-volatising the raw material anthracite. The majority of Quantum’s feedstock anthracite is supplied by Springlake Colliery, which has reserves in excess of 20 years and is located in the nearby town of Dundee.
Forward-Looking Statements
Certain information regarding Canaf contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Canaf believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. Canaf is under no obligation to update or alter any forward looking statement. These risks include operational, political, currency and geological risks and the ability of Canaf to raise or obtain funds for its operations. Canaf's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
For more information about Canaf Group visit www.canafgroup.com or email the company directly at info@canafgroup.com