Calidus Resources, an ASX-listed gold miner, has collapsed with its main financier, Macquarie, calling in receiver KordaMentha at the weekend.
It remains unclear why Macquarie called time on the company, which runs the Warrawoona mine near Marble Bar and was working with SQM, one of the world’s largest lithium miners, to develop the Pirra lithium project in the Pilbara.
A KordaMentha spokeswoman confirmed the appointment of Richard Tucker and John Bumbak to manage the business, and said: “The receivers and managers are now in control of the operations and will immediately undertake an urgent assessment of the operations before launching a dual-track sale and recapitalisation process.”
....this is highly unexpected given 1) CAI is in the gold sector and even has a lithium offshoot 2) its loan is not excessive.
....its a stock I made money from 2020 which thankfully I did not Buy and Hold but sad to see it go down this way.
....this serves to underscore a few points I have been mentioning here on this thread
1. Cheap is cheap for a reason - the market knows more than us ; if you pick bottoms you may get smelly fingers
2. Look at the chart below, can you see a giant Xmas tree?
3. Companies that pursue loans instead of a dilutive CR stands to risk being wound up if they face cashflow adversity that they can't adequately address. Management prefer loans because they don't want to get diluted but they instead place the company in a position in which it can't buy time when business is facing it tough.
4. Bankers are merciless and they pull the plug when their interests are starting to look compromised.
5. This is what Buy and Hold can look like and continue to hold after having lost big.
