Calidus Resources has poured it's first gold bars - cool video here.

Now Calidus is in now a junior producer, it will be rated as such. Here is how CAI valuation presently stands:

Earnings Valuation per resource ounce: $275. (GOR = $305)

Value to profit multiple: 4.5 (based on 80k per annum production) Typically 3-5 for junior producers.

It looks like a big chunk of the re-rating has already occurred. The optionality going forward is:

1) Lithium exploration

2) Gold resource upgrades

3) Bluespec expansion.

DISC - HELD.

Calidus have announced the processing or low grade ore is underway, which will transition to run of mine ore in the next week. They have reported gold has began building in the circuit, and expect to the first gold pour within two weeks.

Video of mine operations here.

On March 19, 2022, Calidus reported results on some preliminary exploration results for their Blue Spec project. I haven't read too much into these results, as there needs to be more work to be done to firm up the opportunities.

But, they mention first pour of gold is on track for May. This is a major catalyst for the operation, and provided there are no problems with commissioning and production commencement, should provide nice tailwinds for the operation, along with a supportive gold price. Although, the share price has rallied strongly already:

Based on most recent feasibility study, for stage 2, and a discount rate of 8%, I come up with a valuation of $405 million or 99 cents per share.

Impending gold producer Calidus has announced their 50% owned JV entity, Pirra Lithium, has identified a significant lithium pegmatite outcrop, with encouraging rock chip essays (2.34% Li2O).

2500 m RC drilling program is planned for the June quarter of 2022.

Calidus announced they have entered into a JV with Haoma Mining to explore for Lithium in existing tenements in the Haoma and Calidus portfolios.

Haoma is a private company, with majority ownership held by Gary Cordell Morgan, best known as executive chairman of Roy Morgan Research. Haoma are cash strapped, and have been around for a long time, and have little to show for it. I can see why Haoma see this as a good opportunity to fund further exploration, given they have no capital themselves.

Calidus are not making a particularly large commitment, and does not present a significant risk to shareholders at this stage, given the small commitment, but I don't hold a lot of hope of this turning into something big...

DISC - I HOLD.

I'll be trimming if the price runs too hard on the back of this news.....

4 diamond hole results released, confirming the high grade nature of the resource, and likely to result n an upgrade in the resource estimate. Key results:

• 4.1 m @ 33.6 g /t Au from, 195 m
• 2.55m @ 44.1 g/t Au from 413 m
• 3.1m @ 20.4 g/t Au from 450 m

MD, David Reeves said:

"These are the first holes Calidus has drilled at Blue Spec and it is significant that we have already validated the very high grade nature of the deposit. The results will form part of the DFS resource upgrade, and the core will also be used in the metallurgical testwork and studies now underway."

DISC - I HOLD

Calidus reported construciton is on track and on budget, with first ore delivered to the Run of Mine pad.  

The project (including stage 2 Bluespec) has a NPV of $302M, at a gold price of AUD $2355/oz Au, and discount rate of 8%.   

Calidus Resources has a market captialisation of $192 M (including options), and $27 M cash balance, Giving an enterprise value of $165M.   

RISKS:

1) Opertional problems with mill / CIL plant increase AISC of mine.  

2) Blue Spec DFS, due in Q3 2022, show adverse economics of stage 2, reducing project value.  

3) Gold price falls, reducing returns.  

4) Labour costs / energy costs rise above budgets, reducing returns.  

5) Adverse weather events disrupt production, and increases mine AISC.  

UPSIDES / OPTIONALITY:

1) Exploration expands reserves, and extends mine life, increasing mine NPV. 

2) Gold prices rises, increasing mine NPV.  

DISC: HELD

Mine construxtion is abut 23% complete as at April 30.   Key news:

• Mine now fully permitted, with water licence now issued. 
• Occupation certification for village issued. 
• Bul earhts works almost complete, with Mine Services Area, tails dam and mining area the focus going forward. 
• Foundations for CIL tank and mill complete, wth crusher foundations to be compelted in May. 
• Mining to commence by end of June (this year), and commsisionnig to be completedby early next year. 
• No cost overruns reported.  

Update - After just raising capital in December, telling the market they were fully funded into production, Calidus have gone into a trading halt to raise more capital - 3 months later.

However, in their previous captial raise , they did say the CR contributes to the acquisition of Blue Scpe Gold Mine. Clearly it did not cover the 100% acquisition cost.   

Looks like a further 9-10% dilution for shareholders.  However, annual mining production will be increased by 22%, and will extend the mine life by 1 year. 

So, the capital raise does appear to add value for shareholders, assuming the project goes according to plan. 

DISC - I HOLD.  

Managing Director, David Reeves brought $91 k of shares on market @ about 45c per share. 

Calidus resoruces announced today that it has secuered $110 Million debt funding, which secure the financing of the $120 million Warrawoona gold project.   some of the funding terms are:

1) 3.25 year tenor form commencement fo repayments in June 2022.  

2) Early repayment at any time without restriction. 

3) Mandatory hedging of 25% of production.  

4) Competitive (undiclosed) interest and fees.  

Final agreements to be concluded in 2021.  THis now allows Calids to make contractual commitents to commence full development (early February), with the early works package on track for completion in December.  

Significant development reported today.  Deleted speculation regarding mining costs and the PFS budget, as the full mining cost is unresolved.  Key takeaways:

1) Base infrastructure works commenced, ahead of schedule.  

2) Macmahon Holdings awarded preferred mining contractor tenderer.   

Calidus Resources Announced the acquisition of Blue Spec Gold Project from Toronto listed NOVO Resources Group.   Key takeaways:

1) 219 kOz resource , at a high average grade of 16.2g/t Au.  

2) Site is open on down dip and along strike, with potential to expand resource further.  

3) Site is within trucknig distance of Warrawoona processing plant, enabling CAI to extend the mine and production facility life.

4) Purchase cost is $19.5 million, or $89 per resource ounce.  

5) Resource includes rarte metal Sb, @ 5.2 kt.  this is valued at $5700 USD per tonne, or $30 M USD.  About 50% of this  can be extracted at the proposed Warrwoona facility, so is a nice bonus, and lowers the effective exploration cost.

Assuming al the data provided by NOVO is legit, this looks like a great acquisition, and addrssses my conerns RE: mine life. 

Key takaaways:

1) Pre-feasibility study can produce 85 kOz pa over 6 years at ASIC of $1251 / oz.   

2) Gold reserves incrceased 24% to 519 kOz. Resources of 1.1 MOz at 0.5 g/t (O/P) and 2 g/t (U/G) cut-off.

2) $25 M captial raise successful, to enable early works construction phase, and further exporation drilling. 

3) Construction tenders issued, with early works scheduled to commence in by Q2 2021.  First gold schedule to be poured by the end of calendar year 2021. Refer to program attached.   

Calidus is currently valued at around $300 / reserve Oz, or $100 / resource Oz.