Hi Mark, are you sure about that? A recap of the Haoma agreement announcement -
The framework agreement sets out ... the binding terms for the Proposed Transaction, in particular: • a profit share in respect of the relevant East Pilbara Assets of 60% (Calidus) and 40% (Haoma); and • the respective operational contributions of Calidus and Haoma, namely: - Calidus is to manage the mining, extraction, processing, transportation and sale of gold, obtain required regulatory approvals and provide access to its existing infrastructure; and - Haoma is to provide a licence to access the relevant East Pilbara assets and utilise the mining information.
Seems very clear to me Calidus is on the hook for ALL the expenses , so none of their costs are "covered". So in your example there with the 1.5 gt stockpile., if gold producers are on an average margin of say 30% (just to pick a figure), the profit would be 30% of 1.5gt x 60% = 0.27gt
Very rough figures, but unless CAI get a lot of hi grade ore to blend in, it may not have any real upside? Trouble is its impossible to predict the extraction costs under these scenarios.
Nah, those 2 have different writing styles and knowledge sets. Not the same people at all imo.
As for the Million dollar kid, well, old habits die hard.... Check it out here.
CAI Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held