TSXV:NFG - Post Discussion
Post by
nozzpack on Jun 30, 2024 1:18pm
Crux Investor Makes the case for Investing in Calidus
...on June 21 2024...just 7 days before its collapse ..Brilliant analyses for its subscribers no?
The Investment Thesis for Calidus Resources
- Production Growth: Calidus is set to increase gold production significantly by adding Nullagine, potentially doubling current output.
- Margin Expansion: Unhedged production from Nullagine allows full exposure to high gold prices, potentially driving substantial margin growth.
- Balance Sheet Improvement: Increasing cash flow should accelerate debt reduction and hedge book unwinding, strengthening the financial position.
- Exploration Upside: Numerous targets across the Nullagine project area offer the potential for resource growth and extended mine life.
- Low-Cost Acquisition: The bargain purchase price of Nullagine provides a low-risk entry into a potentially high-reward project.
- Operational Synergies: Existing infrastructure and rehiring of experienced personnel should facilitate a smooth restart at Nullagine.
- Leverage to Gold Price: Increasing unhedged production provides greater exposure to potential further increases in gold prices.
- Management Experience: The team has demonstrated the ability to build and operate mines, which is crucial for executing growth plans.
- Potential for Further M&A: Once the balance sheet is strengthened, Calidus may be well-positioned for further value-accretive acquisitions.
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