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https://www.copyright link/companies/mining/pilbara-gold-miner-calidus-collapses-as-macquarie-calls-in-recievers-20240630-p5jpxyEx AFR today

Calidus Resources, an ASX-listed gold miner, has collapsed with its main financier, Macquarie, calling in receiver KordaMentha at the weekend.

It remains unclear why Macquarie called time on the company, which runs the Warrawoona mine near Marble Bar and was working with SQM, one of the world’s largest lithium miners, to develop the Pirra lithium project in the Pilbara.

A KordaMentha spokeswoman confirmed the appointment of Richard Tucker and John Bumbak to manage the business, and said: “The receivers and managers are now in control of the operations and will immediately undertake an urgent assessment of the operations before launching a dual-track sale and recapitalisation process.”

Calidus Resources’ Warrawoona Gold Project is in the emerging Pilbara goldfields.

Calidus had a market capitalisation of $89 million on Friday when shares traded at 12¢. They have fallen significantly, having reached $1.02 in 2022 after Warrawoona production began. Macquarie is one of the company’s largest investors with a 4 per cent stake. Another major shareholder is Macmahon, an ASX-listed mining services group.

At December 31, accounts show, Calidus had $9 million in cash and a loan with Macquarie totalling $69 million. It had repaid $12 million in the past six months.

But it was forced to raise $16.5 million in March to repay debts and find working capital. At the time, the company described Macquarie as a “supportive lender” and said a restructure would “allow for significant cash-flow generation”.

“In addition, debt repayments of $11 million have been rescheduled with final loan repayments extended by one quarter to September 2025,” the company said then.

Calidus reported total production at Warrawoona of 15,118 ounces of gold in the three months to the end of March, up from 11,980 ounces to the end of December, with March the single highest monthly production since operations began.

KordaMentha’s Mr Tucker said that “the fundamentals of the asset were strong with multiple deposits and two processing plants”.

“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.

“The Calidus assets represent an excellent opportunity to acquire a producing gold asset at a time when the gold price is around all-time highs.”