June 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 April 30, 2012.
For the 3 months ended April 30, 2012 sales increased 9.4% to $2,627,388 from $2,401,314 for the previous quarter. Net Profit After Tax and Non-Recurring items decreased marginally to $104,009.
The main reason for the increase in sales is due to the re-commissioning of ArcelorMittal's Newcastle facility, which was only re-commissioned in December 2011. The Company expects to see a further increase in sales for the coming quarters as the order book fills up and sale price increases implemented.
At April 30, 2012, the Company had cash of $1,182,255 and inventories of $957,757 comprised of processed and raw materials. During the quarter the Company made further progress on its debt reduction plans, reducing related party debt by approximately $55,000 and purchased assets for its operation in South Africa to the value of $132,479.
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.
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.
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.
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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