CAI - Calidus Resources

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Company Website: Https://www.calidus.com.au
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Under construction – Average production of 90koz pa at LOM AISC $1,290/oz – initial 8-year mine life ,First gold due 1H 2022

Stage 2:​

Expansion to 130koz pa via inclusion of Blue Spec Project funded through operational cashflows


Expand 1.7Moz Resource Base through near-mine and regional exploration


Management team are proven mine developers & operators with a strong track record of wealth creation

April 2022 - Presentation
6 April 2022
26 April 2022

out with the Quarterly, and a plunge in SP

mill feed during the quarter was adversely impacted as result of COVID-19 related workforce disruptions that restricted ore tonnages to the processing plant and subsequently resulted in:
• Lowering of the head grade material feed to the mill
• Increased stockpile depletion
• The ROM cut-off grade lowered to 0.4g/t

Dona Ferentes said:

out with the Quarterly, and a plunge in SP

mill feed during the quarter was adversely impacted as result of COVID-19 related workforce disruptions that restricted ore tonnages to the processing plant and subsequently resulted in:
• Lowering of the head grade material feed to the mill
• Increased stockpile depletion
• The ROM cut-off grade lowered to 0.4g/t

View attachment 147917

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CAI had a very lofty valuation relative to the NPV of their project. Now that they are in production and have an additional deposit to mine, I think at 36 cents right now (roughly $155M market cap/$245M EV) this is one of the interesting WA investments out there.

However, the difference between 0.78g/t actual vs 1.01g/t planned production grades for the quarter is massive - that's about $10 million in "lost" revenue for the quarter - by my estimate they are probably only bringing in about $60/tonne in revenue at that grade - and I imagine their operating+corporate costs are in the $55/tonne range.

And of course, all of a sudden, the $20 million capital raising in late August looks more and more suspect. This is a small deposit at around a 4:1 strip ratio mining sub-1g/t dirt in a remote part of WA - cash is critical and I noticed that cash balances were omitted from that quarterly update which is why I suspect a reason why the share price has been hit this hard.

The statement below (page 2 quarterly) is laughable. I don't buy that you can mitigate the loss of 13% of your ore - surely that was in the original feasibility presented to the market? If so, what are the consequences of 13% ore loss? And how does the resource model grade reconcile 100% when the actual vs planned grade varies by +20%? Anyways, it's early days and there are bound to be some issues - but it's all too often that we see companies underperform not overperform, at least it doesn't appear that the capital costs have blown out.

Huh??? I thought that they already hit commercial production ages ago...

Grade is still dog? and costs are not great at over $2000/oz, add in sustaining capital, regular capital, corporate costs, and they can't be in a good position right now. "Cash Cost" is the lowest possible number they can publish - and 'processed' is probably the highest possible number they could use (if they had holdover from November) - I personally would have preferred to see recovered & mined as well. The information in these pre-quarterly reports is absolutely useless on its own. Why is the board wasting my time with these garbage releases?

But what worries me most is that the chairman of CAI is also the chairman of CHZ (which I hold) - And I wonder if the stink of the poor performance of CAI since hitting production is impacting CHZ?

Warrawoona Delivers Strong Production in January

Mill running at above Nameplate

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Chile's global lithium giant, SQM, continues to enlarge its Australian holdings, having recently acquired a 30% stake in the Calidus Resources Pilbara lithium project. This move marks the latest in a series of deals in 2023 that have seen SQM aligning with promising lithium projects and their promoters.

Calidus Resources announced that SQM will purchase a 30% stake in the Pirra project from its joint venture partner, Haoma Mining. Calidus stated that SQM's total interest in Pirra Lithium Limited will ultimately reach 40% through a $3 million injection to support exploration efforts. Calidus, which had an equal ownership stake in Pirra with Haoma, will also retain 40% ownership in the project by contributing an additional $2 million for exploration funding.

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Dave Reeves, CEO of Calidus, affirmed that the footprint of the Pirra project in the East Pilbara has expanded, as Pirra Lithium has agreed to acquire an additional 348 square kilometers of lithium rights from Haoma. These newly acquired tenements will supplement the existing lithium rights-sharing agreements between Pirra and Haoma, initially announced in February 2022.

Mr. Reeves expressed confidence in the prospectivity of Pirra's lithium exploration acreage in the Pilbara, thanks to SQM's significant acquisition. With an increased landholding spanning over 1,411 square kilometers in the Pilbara, Pirra is well-funded to advance exploration efforts, focusing initially on the Tabba Tabba South tenements, strategically located along known lithium occurrences and a belt housing substantial lithium resources.

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While Calidus intends to maintain its 40% ownership stake in Pirra due to the land package's promising potential, the company will reassess its options as exploration activities progress.

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one less for the tipping comp.
.
....from AFR

Calidus Resources, an ASX-listed gold miner, has collapsed with its main financier, Macquarie, calling in receiver KordaMentha at the weekend.

It remains unclear why Macquarie called time on the company, which runs the Warrawoona mine near Marble Bar and was working with SQM, one of the world’s largest lithium miners, to develop the Pirra lithium project in the Pilbara.

A KordaMentha spokeswoman confirmed the appointment of Richard Tucker and John Bumbak to manage the business, and said: “The receivers and managers are now in control of the operations and will immediately undertake an urgent assessment of the operations before launching a dual-track sale and recapitalisation process.”

Calidus had a market capitalisation of $89 million on Friday when shares traded at 12¢.

On January 16th, 2025, Calidus Resources Limited (CAI) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following the transfer of all its securities to West Coast Gold Pty Ltd (or its nominee) pursuant to s.444GA of the Corporations Act (Cth) as set out in CAI's announcement of 10 January 2025.