Streaming deals are a short term gain but a long term expense... which is why I don't like the idea.
That said .... DR has a track record for making the difficult decisions when it comes to handling money and so far he has been correct every time. I know some people are going smash their cups into the keyboard with that statement. He raised @ 67 cents in response to the difficulties due to Covid and did so in the face of consistently telling us no CR's required. That would have been difficult to do because the shareholder backlash was very predictable. Imagine if he had not done the raise?
I can see Blue Spec West developing into something special down the track and the idea of paying a streaming company on the sort of production which potentially could come from that irks me a bit... but the short term necessities might dictate CAI goes down that path.
On the negative appraisal of CAI which is coming from some people... Warrawoona is under-explored and the idea it is only a 7 year mine life is ridiculous. ALSO...Blue Spec West has returned excellent grades from the initial drill campaign, if CAI was merely an explorer it would have a $100M market cap on that alone. (just for entertainment purposes go and look at the drill results DEG returned 3 years ago when they first started reporting on the Hemi deposit... CAI's early results are better and 5k's downwind from the second highest underground grades in Australia. You can bet management of Novo are now wondering what they let slip through their fingers). Last, but not least, is the Pirra JV... it might turn into nothing but it is not priced in, so only upside with that.
I am not one for banging the drum about things so I will not repeat myself. But this is an investment forum where we share our analysis... and the above is mine.
CAI Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
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