Ann: Quarterly Activities Report and Quarterly Cashflow Report, page-13

A brutal quarter no doubt about it....
Though.. if nothing else I salute the MD and the board for not trying to hide anything. MOY was much less transaparent and.... whilst it was not the main reason they went under, lack of clarity caused many investors to be rightly frustrated at the eventual outcome.
CAI is... without doubt high risk right now. BUT....surely at this point, anyone reading the quarterly can tell that??

So... anyone holding or buying should be 1000% clear on what they are investing in.
Obviously the hedge is a sprinting firstly hooking a huge log of wood on, then... attempting to sprint in a race.
Basically 95% of the Dec production was to fulfil the hedge, which lost money on every ounce. Why the lender and borrower were not able to come to a more amicable deal earlier to enable CAI be not be put under such pressure astounds me, or.... is Mac bank truly that bad? (or just short sighted, or they just don't give a sh&t...?)

The cash position is incredibly tight and the MD should probably be providing monthly updates on production and cash position. To do anything else after what happened to MOY down the road would IMHO be... a true scandal (mind you, I don't think Dave is a bad guy).

CAI should sell off its Lithium assets ASAP (it cannot afford them anyway).

The rescheduled 3500 ounces will help a little (perhaps $2-3m). Basically 9000 ounces into the hedge.... are dead money. Every ounce above that... is what is going to potentially save them....

They should have reschecudled the debt ages ago too... sure that is hindsight, but... it's been 12+ months since major issues have arisen.

If I eyeball the chart... they are forecasting production for Jan - 5.5k Feb - 6.5k Mar- 7.5k = 19.5k and then Apr- 7.3k May-7.6k Jun-8.5k = 23.4k
That seems to be way above guidance of 32k-37k (I really hope they finally start beating guidance, but... )



So.... CAI.
A small capital raising seems the most logical thing to do... (probably should have don't it last month?)
Even just $5m might be enough to get them through. But... it's unlikely that other lenders are jumping up and down to get CAIs business.
Almost a shame that ALK is in a capex heavy period, as they are the most logical saviors.

Cannot help but be pleased I exited, if only to preserve capital, as I like the company and the dirt.

At this point, I really hope CAI pull this off.
Good luck to all holders.