Ann: Calidus buys Nullagine Gold Project & enhances cash position, page-33

At first and second glance, it looks like an absolute master stroke. Doubling our gold reserves to around 2.8m ounces is no mean feat, meaning we are well on the way to 'mining in the area for decades' as Dave Reeves had previously suggested. Growth in both our reserves of oxide and sulphide ore, some of which (oxide) can be directly shipped to WGP to bolster current production.

I need to understand the NGP project history better (and will read up over the Christmas period), and the specifications of the Golden Eagle plant, but it sounds like the plant may help us with expediting sulphide processing which could see earlier commissioning of the Blue Spec Project on an expedited, lower cost timeline. Even if it doesn't, we were committed to building a new sulphide plant anyway - and so obtaining more sulphide/refractory ore just makes the business case for a new plant build stronger, even if in the worst case scenario, all Golden Eagle is usable for, is scrap cost (that could be partially offset against new build costs).

Quick (and vital) $14m cash gain by renting out the Nulligane camp on an upfront 10 year basis is a master stroke, not least given we've also obtained accommodation for our Blue Spec resources, which was something on the 'to do' list anyway. Renegotiation of our loan facility is still essential, but this extra $14m takes so much pressure off - we know that this December quarter is still going to be a poor one, given cocts of cutting back of the main Warrawoona pit to facilitate access to the higher grade ores, and allow for starting underground works. Reeves had already said that 2024 Q1 will be a 'step change' in performance, and so this $14m gives us the stamina to get there without raise, or 'under duress' conversations with Macquarie. It also sounds like there's a lot of plant and equipment available which could either be used and reduce ops costs or allow for some short term cash gain from disposals.

All for just $250,000 of share capital. Provided the resource base holds up, the downstream cash flows should not be seen as a concern. $5m on processing 100,000 oz of ore - well, if gold prices hold up, that is going to be a $5m 'royalty' on $300m revenue (at current prices), in around 2-3 years time. The $45m rehabilitation cost will only be due when the NGP resource base is exhausted. Lets assume that we can only exploit 400k ounces of the 1.4m oz NGP reserves. That would be a $45m cost from $1.2BN revenue (at current prices), assuming a conservative realisation from the resource base, and assuming no extension of resource at depth - and also before consideration of realisation of any cash from any scrap and disposal recovery from the plant.Still some 'homework' to do on this one, but I think its a massive step tpwards the day 1 stated aim of Calidus to become the prime hub and spoke producer in the East Pilbara.

I think and hope this will look like a totally different operation by mid 2024 and I was feeling more confident in our short and medium term prospects, solely with the Haoma JV, anyway.

Lets have some good Lithium results in the soil samples to end the year on a real high note, please!