Costs were up in q4 vs q3 despite slightly improved production....

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elzephyrus

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11/09/23

08:44

Post #: 69805459
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Originally posted by prhb: ↑

Sentiment is a strange beast, and plays a large role in Corporate share price performance.
The All Ordinaries was 7770 on Feb 3 this year, and 7672 as recently as July 26th this year. Today it sits at 7359, based upon Chinese and global growth concerns.
Gold in $USD hit a high of $2052 in March, and today sits around $1924 (although it's close to ATH in $AUD)

As the markets have become more pessimistic (probably with reason), so have valuations of a lot of companies, with Calidus suffering more than many because of its problematic startup, and an initial cost per ounce well above that originally forecast.

In their last public presentation on July 20th, Calidus had not altered their stage 1 AISC forecast cost - holding with $1750 - $1850 for life of stage one. This forecast appears to be based on a combination of reduced strip ratio, and increased grade at depth.

The commentary on this thread represents a divide between those who 1. follow market sentiments, and 2. also disbelieve the total gold per quarter & AISC forecasts (or possibly think the forecasts will be realized in much later reporting periods) - and those who feel that there is a (possibly narrow) path to profit in the short term, and that Calidus is greatly undervalued if a two year horizon is taken.

We pays our money, and we takes our chances. ~smile~
Good luck to all genuine posters - have a great day - and those who ridicule and belittle, have a great day too. You too are valuable humans.

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Costs were up in q4 vs q3 despite slightly improved production. They're also saying production will be weighted to second half of fy24 in their forecasts. I wouldn't expect this quarter or the next to show much improvement. And I wouldn't put too much weight in their aisc forecasts (based on previous experiences).

CAI Price at posting: 15.5¢ Sentiment: None Disclosure: Not Held
6 Upvote

1 Great analysis

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