- Calidus Resources (CAI) shares have fallen over 25 per cent following the release of the company’s quarterly report for the three months to December 31, 2022
- The company recalls making “significant progress” at its Warrawoona project in WA, producing 12,544 ounces of gold and processing 510,719 ounces
- Calidus is optimistic about increasing annual production at Warrawoona once it reaches the second and third stages of development
- At the end of the quarter, Calidus had cash equivalents of $12.4 million on hand
- Company shares are down 25.3 per cent to trade at 28.8 cents at 3:50 pm AEDT
Calidus Resources (CAI) shares have dropped more than 25 per cent following the release of its quarterly report for the three months to December 31, 2022.
The company said it made “significant progress” at its Warrawoona project in WA, as it achieved commercial production in December, and the processing plant was operating at nameplate capacity.
For the month of December, Calidus processed 191,000 tonnes at 0.85 grams per tonne (g/t), with 5053 ounces of gold produced. In total, the WA-based project produced 12,544 ounces of gold and processed 510,719 ounces.
For the first half of CY2023, the company’s production guidance is between 31,000 to 36,000 ounces at an all-in sustaining cost (AISC) of $2000 to $2250 per ounce.
The company expects annual production to increase from 70,000 ounces per annum to 100,000 ounces once the project hits its second and third stages of development as higher-grade underground mining commences. Stage three will benefit from the inclusion of the Blue Spec project.
In addition, Calidus made a new gold discovery at Blue Spec, which lies 70 kilometres from Warrawoona, during the quarter.
Highlighted results include six metres at 40.15 g/t gold from 38 metres, including one metre at 220.17 g/t gold from 39 metres and 41 metres at 2.37 g/t gold from 32 metres.
In terms of financials, the company reported a net operating cash outflow of $10.9 million. The company spent roughly $8.4 million spent on exploration and development and about $5 million on financing activities.
At the end of the quarter, Calidus had cash and equivalents of $12.4 million, and the company said it was anticipating positive net operating cashflow in the March 2023 quarter.
Company shares were down 25.3 per cent to trade at 28.8 cents at 3:50 pm AEDT.