Ann: Quarterly Activities Report and Quarterly Cashflow Report, page-171

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Watchfulbull

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02/02/23

08:37

Post #: 66021116
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Originally posted by Dazedandconfused: ↑

Hi Watchfulbull

I don't see a gold streaming deal happening. It would be calculated on the life of mine (LoM) @ 7 years and lower production forecast @ .85g/t. It would require CAI to demonstrate greater LoM in which case the SP would re-rate anyway. Personally I think the gold streaming companies are parasitic... not an option I want.

My guess is CAI will try for a lower debt repayment/monthly and put the balance at the end of the facility @ a penalty interest. Since management paid $5M last 1/4 they might repeat that for a couple of 1/4's and free up about $15M for funding growth. Apart from steady state production all CAI needs is to drill out West Blue Spec to establish a maiden resource and continue advance drilling of the pit for the next 12 months.

Also, I would dispute CAI is over a barrel on this. Yes cash flow is tight but it can be managed. The forward guidance is clearly based on the December head grade of .85g/t. The feasibility study forecast 1.1g/t which was based on very thorough drilling ... if that doesn't eventuate then perhaps I will start to worry about things.

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DR specifically said to me they would prefer a streaming deal. Apparently they wanted one initially but Macq not interested, however now they are.

Re grade I agree. With such tight spaced drill out, the ore should be there, just need to refine some mining practices.

CAI Price at posting: 27.0¢ Sentiment: Hold Disclosure: Held
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