NEWS RELEASE
Canaf announces consolidated financial results for Q3 2012
September 25, 2012, Vancouver, British Columbia - Canaf Group Inc. (TSXV: CAF) ("Canaf") the Canada-registered mining group, today released its Financial Statements and Management Discussion and Analysis for the 3 months ended July 31, 2012.
For the 3 months ended July 31, 2012 sales increased 23.4% to $3,242,393 from $2,627,388 for the previous quarter. Net Profit After Tax and Non-Recurring items decreased to $54,466.
The highlight of the period was the completion of the trial supply of product to BHP Billiton, which proved to be very successful. Subsequently, the Company reached an agreement with BHP Billiton over the terms relating to a long-term contract to supply calcined anthracite to one of their ferromanganese facilities in South Africa. The contract has now been approved and is for a period of 3 years from 01 September 2012 until 31 August 2015. The Company anticipates profit margins to increase from October 2012 as new contract prices start reflecting on the accounts.
At July 31, 2012, the Company’s total assets amounted to $4,030,483 with cash of $1,489,884 and inventories of $541,831 comprised of processed and raw materials.
During the quarter the Company made significant progress on its debt reduction plans, reducing related party debt by $208,664. The company also invested $132,001 in new freehold premises during the quarter as a way of optimising cash and reducing rental and accommodation expenses.
The Company continues to focus on generating positive free cash flow and continuing to make progress on reducing total debt, as well as reviewing other resource related opportunities in Africa.
The Financial Statements and Management Discussion and Analysis can be viewed on www.sedar.com or the Company’s website, www.canafgroup.com. All reference to dollars herein are to US dollars.
About Canaf
Canaf Group Inc. is a junior mining group based in Vancouver, Canada, and with subsidiary offices in the United Kingdom. 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 used as a replacement to coke in the manufacturing process of steel and manganese. The company’s two largest clients are Mittal Steel 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 25 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 further information on Canaf Group, visit www.canafgroup.com or see contacts below.
UK Office:
Christopher Way
Canaf Group Inc.
Phone: +44 1273 492100
Fax: +44 1273 492175
E: info@canafgroup.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.