Calidus is an interesting case that will work towards becoming a...

Calidus is an interesting case that will work towards becoming a junior producer in the future. The resources and their plan looks quite encouraging. One hesitation I do have about the company's estimated AISC on production being $1 159/oz is that it does seem a little too optimistic. The mine is expected to produce about 100koz p.a. at grade 1.5g/t or so using a 2Mt p.a. processing plant. This plant capacity and grade is not dissimilar to that of Mount Magnet for Ramelius Resources that currently feeds a small proportion of high-grade ore from the Vivien gold mine, and their AISC is averaging $1 250/oz. I would think that for the purposes of us investors, not being bankers providing the company with finances to build the mine, we should temper our estimates to something more realistic. I personally consider AISC of $1 300-1 450/oz to be more realistic, considering comparable operating mines in Australia. That being said, it would not detract too much from the company's case for being an investment with potential going forward.

I own a small stake and awaiting more news regarding what they will do with financing. Will wait for more clarity on the company's DFS first. I do expect given the cost of building the mine is $95m, they will need a rather dilutive capital raise, or Alkane may look to snap them up. Many factors up in the air. Given the history of such small development companies being acquired, should be exciting times for holders.

Cheers,
Brian