Never saw the CR coming?, page-24

I think all holders have accepted that the Klondyke open pit will yield between 0.8g-0.9g/t Au.

This, in itself, could be a highly profitable operation and that is why management have chosen to target the Klondyke open pit only for FY25.

The issue is the profile of the debt repayments and hedges. They are reducing the hedge by 11,750 ounces and making debt repayments of $8M a quarter. This is not sustainable given the forecasted production rate (16,500 a quarter).

Pre-cutback, CAI have demonstrated they can produce at this level therefore I have no issues with the production forecast. This output, combined with the restructured 7,000 ounces and $5M debt repayments, will make CAI profitable.

Can you name one gold company on the ASX that could withstand selling 70% of their output at the hedge price and using 20% of their revenue for debt payments without going broke?