Maybe... never say never. Although he mentions battery minerals the context, as I hear it, was only to make the point that the investment funds are currently heading into those projects and draining away from gold projects.
The interpretation I have is there might be good projects which deserve to proceed to production but can't easily attract finance (due to battery metal frenzy) coupled with the suppressed SP of gold juniors making raising via CR problematic that it provides a competitive advantage for a company with a strong cash flow to pick up projects at distressed prices.
In my personal forecast I am not so sure the current tight conditions in the gold space will last another couple of years for this ambition to be realised. The macro picture of declining world growth, high debt and negative real rates is supportive for an ever improving gold price... in that regard CAI is a little behind the curve to establish the required free cash flow in time to execute the strategy. I think the PoG will continue rising and a number of currently marginal projects will become economic and the better projects will rise significantly in value.
(It's this context that I think CAI and ALK are natural allies with ALK's blocking stake of 19.9% in GMD securing that prospect from anything hostile and providing a pathway for it's particular multi-mine ambitions. But ALK couldn't do it on its own... CAI seems a natural fit and should be able to negotiate attractive terms. That's my best guess anyway)
DR's comment that CAI comes on to the radar as a target once it is producing is worth taking note of.
imo.... The strength of CAI is the extensive under explored land package which looks very prospective. I hope to see some aggressive exploration in the next 12 months so that any take over offer is properly valued. I hope CAI can avoid becoming "dinner"... the longer term value is for it to succeed in expanding to a multi-mine company... imo.
CAI Price at posting:
56.5¢ Sentiment: Hold Disclosure: Held
(20min delay)