CAI - General Chat, page-515

The selling has been disciplined high volume ... i.e. large sell orders placed at a price point which gets reloaded and only moved down when the buying dries up. This looks to me it is an institutional holder is exiting their position. The recent 40% drop after the production update likely triggered a money management decision.... imo.

Sentiment for CAI has always been weak. It has consistently traded well below intrinsic value for at least the last 18 months. Perhaps it is down to scepticism regards the location and nature of the Warrawoona project.... the things the company sees as positives such as the only mill for miles around with the prospect for picking up stranded assets, the under-explored extensions of the main mine deposit and CAI proceeding to mining based on a relatively short mine life are viewed as risks by larger market participants. Then comes along a bit of news about some early problems and that triggers the sell button.

The way I see things is if CAI had gone down the usual path of proving up a larger resource before committing to the FID (final investment decision) quite possibly we would have many more resource ounces but we would not have a mill up and running, the establishment costs for the mine would be 30% higher, finance would have been more expensive, we probably would not have had the funds nor the opportunity to pick up Blue Spec, we wouldn't have secured LNG supply for the next 7 years at pre-inflation prices , we wouldn't have the 50/50 JV lithium project (because many of those tenements CAI holds were secured primarily for the water rights). Where we would have been is just another small gold explorer sitting on ounces in the ground but no revenue stream and probably hoping for a buy-out.

Personally, I am not concerned about the sell down. It is annoying and disruptive but... imo... a case where the "market" has got it wrong.