September 15, 2011, Vancouver, British Columbia - Canaf Group Inc. (TSXV: CAF) ("Canaf" or the "Company") the Canada-registered mining group, today released its Financial Statements and Management Discussion and Analysis for the 3 months ended July 31, 2011.
For the 3 months ended July 31, 2011 sales increased approximately 16% to $4,299,501 from $3,709,335 for the previous quarter, reflecting higher sale prices and higher volume sales.
The group's gross margin for the quarter ended July 2011 was 15.6% or $672,551, representing an increase from the previous quarter of 5.6%. The increase in the margin was due to improved cost efficiency and increased revenues.
The net book profit for the Company, after allowing for provisional tax, during the period was $277,196 and at July 31, 2011, the Company had cash of $1,631,346.
Further to the previous announcement on August 15, 2011, the Company can confirm that the coming two quarters will reflect reduced sales due to the breakdown at ArcelorMittal's plant at Newcastle, KwaZulu Natal. Latest information from ArcelorMittal indicate that first orders for the Company's product will return in either December 2011 or January 2012, when the Company expects to return to full production. The Company is managing during the interim period by utilizing accumulated stocks and is confident that profits will continue to be generated, albeit at reduced levels. The Company is continuing to supply ArcelorMittal's facility at Vanderbijl Park.
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.
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 carbon producing company based in South Africa.
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 Samancor, world leaders in steel and manganese production respectively. Quantum has an operation in Newcastle, KwaZulu Natal, where its two kilns operate around the clock devolatising 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.
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.
Canaf Group Inc.
Phone: +44 1273 492100
Fax: +44 1273 492175
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