Calidus Resources (ASX: CAI)

Reported improved results from the last quarter, but the market was disappointed and the stock fell 25% afterwards.

The main issue is the AISC of around AUS$2,000 – 2,200, much higher than we’d like to see, but still well below the price of gold in AUS$ of around AUS$2,800. 

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Calidus Resources	ASX: CAI
Stage	Production, exploration
Metals	Gold, lithium
Market Cap	A$127 m  @ A$0.29
Location	Pilbara, Western Australia

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Calidus Resources  –  December Quarterly Report, Commercial Production Declared at Warrawoona, New gold discovery at Blue Spec

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Calidus Resources (ASX:CAI) is pleased to report on the significant progress that has been made at the WGP during the December quarter that included the declaration of commercial production at the project and the processing plant operating at nameplate capacity.

A total of 191,000t @ 0.85g/t was processed in December with 5,053 ounces of gold produced.

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OPERATIONS

• Warrawoona Gold Project (WGP) December 2022 quarter production was 12,544 ounces.
• In December, plant operated at nameplate capacity and commercial production was officially declared.
• Steady state operations resulted in positive operating cashflow generation in December month.

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GUIDANCE

• H2 FY2023 of 31,000 – 36,000 ounces at AISC A$2,000 – A$2,250 per ounce.
• Positive cashflow and steady state operations now provide a clear pathway to increasing production to 130,000 ounces pa.

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EXPLORATION AND RESOURCE GROWTH – GOLD

• New gold discovery at Blue Spec, 70km from Warrawoona.
• Highlights include:
o 6m @ 40.15g/t Au from 38m in 22GORC016 (including 1m @ 220.17g/t Au from 39m);
o 41m @ 2.37 g/t Au from 32m in 22GORC009; and
o 7m @ 5.42g/t Au from 46m in 22GORC004.
• Located 5km along strike from Blue Spec Mineral Resource of 222koz at 28g/Au Eq.

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EXPLORATION AND RESOURCE GROWTH – LITHIUM

• Drilling confirmed the continuation of the outcropping body, more than 250m down dip.
• Only 1km of 4km of strike has been tested, with mineralisation remaining open along strike and at depth.

 

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CORPORATE

• Cash and cash equivalents of $12.4M at end of the quarter.
• Debt repayment of A$5M reduced Project Loan Facility to $102M at end of the quarter
• $1.2M spent on exploration activities

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To read the full news release, please click HERE

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.If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email andrew@city-investors-circle.com

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

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This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Disclosure

At the time of writing the author holds shares in Calidus Resources.

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