Hey Stag, from memory, they are looking to bring Blue Spec into production in Yr2 of production (but... my guess is late in the second year, so that it will likely only add a few ounces to the production total. So any heavy capex would not be likely to occur for another 12 months or so. Unless they are able to drill out the shallow drill result they recently got, as having a access to the U/G via an open pit (that pays for development etc) would be a nice bonus.
As you say, no one likes red in their portfolio, but... the precious metals sector can be brutal at the best of times. To have the likes of GMD with a market cap bigger than CAI is annoying me to no end. Sure, the MD is leader in the sector, but... what counts most is what actually happens on the ground, and CAI are actually mining successfully (just a tiny rant on my part).
As @numbatgumboots mentioned, another $3.5m spent to finish commissioning. Debt payment of $3m. Sees CAI having indeed processed low grade for the first few weeks, at a loss, but.. now quickly processing higher (relatively speaking) grade ore, and siphoning off the lower grade, with the plant now close to running at nameplate consistently, should mean that CAI is already cash flow positive as we speak, though perhaps not by any exciting amount, but hopefully as per the plan, this is changing daily. Must be quite exciting on the ground there, seeing incremental increases in throughput, recoveries, pours etc, Plus, they will become more efficient at mining as the team comes together.
As I sort of discussed, I would like to see CAI be FULLY open with the market in the near term. This is basically where others have gone wrong (either through grade not reconciling, plant not being able to be filled, or the plant having issues). I understand that in the 'Biz' quarterlies are where everything is discussed, yet... the company MUST be fully open about the good & bad, otherwise it quickly losses the credibility that CAI have worked so hard to build up.
So... whilst I don't expect weekly updates, I would like to know when they hit weekly guidance for gold pours (over perhaps 2-4 weeks), i.e 90k ounces p.a. divided by 26 = 3460 ounces. If they are able to produce around 1500-1600 ounces a week then... they have achieved commercial production. So so so so.... so.. important (for me anyway).
Good luck to all holders.
CAI Price at posting:
63.5¢ Sentiment: Hold Disclosure: Held
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