I think there is slim chance DR can get CAI back and SH's do not lose it all.
We still have not been given any detailed information on why CAI called in the voluntary administrators... something which I wish had been in the 1/4ly. All we have are a couple of conflicting news reports.
The 0.67g/t is the effective head grade coming from Klondyke after factoring in the 92% recovery rate (the ore is about 0.73g/t). I am confident in my numbers.
In order for Macquarie to allow CAI to continue they have to be convinced DR's plan will work. It is a hard sell when the grade of the main pit is this low. Significant new capital has to come in to reduce the $148M debt to offset Macquarie's risk. Difficult to see an investor stumping up +$50M (for example) taking shares and allowing existing SH's back in when for $100M they could probably own the lot outright (after Macquarie raids the bank account)... and that still requires a buyer believing in the project.
In all of this I have no idea how Nullagine fits into the outcome. Macquarie doesn't have a lien on it but it comes with a large remediation obligation.
My assumption is... once CAI called in the voluntary administration, Macquarie chose to act strictly in their own self interest. Which means no longer accepting company risk and preserving as much of the asset as possible to attract the highest sale price.
CAI Price at posting:
11.5¢ Sentiment: None Disclosure: Held
(20min delay)