NEWS RELEASE
Canaf announces financial results for year ended 31 October 2011
Feb 28, 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 12 months ended October 31, 2011.
The fiscal year 2011 recorded the highest ever level of revenues, generated from the Company’s wholly owned South African subsidiary, Quantum Screening and Crusing (Pty) Ltd. Despite the setbacks of an unscheduled, four-month shutdown at ArcelorMittal's Newcastle facility, the company continued to see strong demand for its product and sales improved 13% to $13,336,725 from $11,807,383 the previous year. Net Profit After Tax and Non-Recurring items increased to $574,776 (2010, a profit of $551,552). At October 31, 2011, the group had cash of $234,856 and inventories of $1,300,373, comprised of processed and raw materials.
The company continues to make progress on reducing total debt, both through decreasing reliance on related party credit and through lower interest expense charges.
The Company continues to focus on generating positive free cash flow and addressing the outstanding debt owed by the Company, 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.