Calidus Resources Delisted From the ASX
Calidus Resources
I have been notified by my broker that Calidus Resources has been delisted from the ASX effective the 17th January 2025.
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Calidus Resources commemorative coin
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Comment
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This is the first time I have suffered a total loss in an investment, although I have had quite a few painful losses over the years with junior exploration companies that have struggled to raise finance, or the price plummeted when liquidity dried up and some sold in desperation.
Calidus executed their mine startup perfectly, on time and under budget, and this made me believe that they were going to execute the startup in the same fashion.
When it became obvious they had not, they were honest about it, explained the reasons why, and the actions they were taking to resolve the issues. This was basically calling in professionals to identify the deficiencies and train staff to overcome them.
This retained my belief in management, even when they did a discounted financing that I realise now was the red flag I should have taken as a sign to exit the investment, or at least reduce until the situation was clearer.
When it appeared they had overcome the issues, and after the discounted placing they did, I used the opportunity to average down my investment because I expected management to finally deliver.
In hindsight I should have waited for better news to arrive before increasing my holding.
The decision to call in the receivers was a bolt out of the blue, and perhaps had I been in Australia and more local to their investment discussion scene there may have been some clues, but being so remote means it’s harder to hear about potential issues.
This came as a shock, after so many years in investing I thought I was experienced enought to identify the warning signs, but this is clearly a wake up call.
In reality all one can do is manage investment sizes within one’s portfolio to ensure that, if a loss such as this occurs, it’s only a small part of the total portfolio. I always do this, and was the case here for me.
I think this is a total loss, although the notice below refers to shares transferring to my Trading Account, I don’t think this is going to happen. I will email the company and ask the question, but I think this is a total loss.
The official notice is below.
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Event Type De-Listing
Description Delisting
Effective date: 17th January 2025
Market affected: Australian Securities Exchange
Please be informed that Calidus Resources Limited has cancelled its listing of NPV shares from trading on the Australian Securities Exchange. This became effective on 17th January 2025.
Unless the situation changes, on 17th February 2025 Calidus Resources Limited shares are expected to become ineligible to be held within an ISA under HMRC rules.
If the shares are still held within the ISA account after the above date, we will endeavour to move the shares to a linked trading account, opening one on your behalf if you do not already have one. Where that is not possible, we may attempt to withdraw the shares into certificate form, reregistering them into your own name.
The above is not applicable if you hold the shares within a Junior ISA account, as it is not possible to take shares out of the account. As such if you hold these shares in a Junior ISA they will remain on the account.
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Disclosure
At the time of writing the author holds (delisted) shares in Calidus Resources
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