CAI - General Chat, page-824

Hey WB, this has probably already been posted/discusssed, but the Crux article lays things out pretty well for CAI in the near term.
Pretty brutal spot CAI is in.
$8m per quarter debt (not including interest). Rates have gone up. Add in the hedge, exploration, admin, etc and.... there are simply no extra $$ for CAI over the next 3 years- I mean ZERO even at the current POG.

Calidus Resources (CAI) - Future Looks Bright for Gold Producer

As for your broker. He could be right, but that means CAI is going to bend over backwards with the debt re-structure and the heding.
As in, they want to push back/reduce the initial hedging, and the debt payments and the interest. Basically just pushing the can down the road, but there is logic in doing so, albeit, just raising $50m tomorrow would do the same thing. They could pay down some debt, have breathing room to finish reaching commercial production and NOT be royally scr%#d over by the lender. I am sure the hedging could be pushed out, say moving lots a year out, but... CAI will pay a hefty fee to do, plus, the low price hedging, will hang around CAIs neck for years.

In the end, if CAI want to get to 130k p.a. They either have to
1) go very slow, do almost no exploration, and just survive until the debt becomes more manageable.
2) make the banks happy in every way possible, push out the hedge, pay more interest over the long term, but... reduce the upfront payments
3) as above, tell them to shove it, and do a 1:1 raising. Sure, huge dilution, but... for me, with debt not being cheap anymore, its a viable option.