Calidus was due to deliver another 78,000 ounces over the next...

Calidus was due to deliver another 78,000 ounces over the next 18 months at $2370 per ounce — more than $1,100 below the current spot price of $3,489.According to Calidus’ March quarter production report, 15,118 ounces were produced at an average cost of $2429 per ounce

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Until recently, Calidus had been primed for a restart of operations at its Nullagine Gold Project, unveiling a maiden resource estimate in mid-June measuring over 475,000 ounces. The company also raised $16.5 million in March, saying at the time that Macquarie was a “supportive lender”.There was some speculation this morning that the shutdown was the result of a ‘show cause’ notice on 11 June from Macmahon Holdings — also a major Calidus shareholder — relating to unpaid costs.Another factor appears to be the company’s hedge book, which showed Calidus was due to deliver another 78,000 ounces over the next 18 months at $2370 per ounce — more than $1,100 below the current spot price of $3,489.According to Calidus’ March quarter production report, 15,118 ounces were produced at an average cost of $2429 per ounce.In any case, KordaMentha’s Richard Tucker and John Bumbak have been appointed to manage the business. Speaking to the Australian Financial Review, Tucker said the fundamentals of the company’s assets — particularly the Warrawoona mine — remained strong.“Production growth is forecast, underpinned by the recent completion of the Klondyke cut-back, resulting in higher-grade ore being accessed and with satellite targets being developed,” he said.