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Thoughts on small cap gold producer Calidus (CAI)

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    Thoughts on small cap gold producer Calidus (CAI)

    Thanks to MM team for the consistently great content that you have been delivering. As you've alluded to, Gold looks to be back in favour. Calidus Resources (CAI) have been a small gold producer for about 2 years now and had their fair share of commissioning problems with their newly developed facilities. They have grand ideas to increase production over the next few years but are again tapping the market through an equity raising. What are your thoughts on CAI? Their production numbers, current AISC of A$2k/oz and the capital raise given their current debt profile? Do they have the right ingredients right the ship? Thanks Steve

    Answer

    Hi Steve,

    The fact that CAI is down ~90% over the last 2-years we believe tells the tale, unfortunately its in well and truly in the too hard basket. Quality established gold companies who are making a profit and paying a dividend are struggling even as the precious metal posts new all-time highs, it’s not in our wheelhouse to consider a “speccy” $77mn company who is raising money and accumulating debt at a concerning speed, it’s not for MM.

    • With stocks such as CAI we would rather buy them after they’ve doubled having demonstrated a realistic path to profitability.
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    Calidus Resources Ltd (CAI)
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