RE:NI-4301Bentoutashape,
I was not overly impressed with the Fiore acquisition either, with the resulting dilution. I did make some comments back at the time of the purchase, but it was, in part, a perceived country de-risking move by the company.
However, this management team saw some potential with Fiore over and above the operations at the time of purchase. The exploration potential is shaping up nicely in Nevada, and it does appear that the political risk in Nicaragua is abating somewhat, with the recent release of all political prisoners by the Ortega Gov't.
https://www.politico.com/news/2023/02/09/nicaragua-frees-more-than-200-political-prisoners-00082080 I doubt the gov't in Nicaragua cares much about what the U.S. administration says or does, with Nicaragua joining the BRICS nations and strengthens its ties with Russia and China.
You are correct regarding the 16% reduction in M&I reseources but the full context should also be mentioned .... Calibre did replace 100,000 oz of the 170,000 oz mined when depletion is accounted for.
Let's see where the resources stand after 2023 Nevada exploration drilling is completed and the company updates their reserves/resources in early 2024. There is a strong possibility of the nearby Gold Rock deposit adding significant ounces to the resource base ..... a possible spoke for the Pan hub ?
https://ceo.ca/content/sedar/CXB-20230324-Technical-report-NI-43-101-English-667b.pdf Page 9 & 10
"..... The updated 2022 MRE shows a 16% decrease (68,500 gold ounces) in Measured and Indicated Resources to 358,900 gold ounces versus the 2020 MRE that utilized a June 30, 2020 topographic surface (SRK 2021). The approximate calculated mining depletion for the period of June 30, 2020 to December 31, 2022 is a little over 13 million tons and about 170,000 oz Au, the vast majority of which were Measured and Indicated Resources from the 2020 MRE. The 2021 to 2022 drilling has effectively resulted in the addition of Measured and Indicated Resources equivalent to approximately 100,000 gold ounces versus the 170,000 gold ounces that have been mined in the period from June 30, 2020 to December 31, 2022. An additional Inferred Resource of 42,000 gold ounces has been estimated at the Pan Mine, that with continued drilling may provide additional Measured and/or Indicated gold ounces Again, I'm still not overly enamoured by the Nevada operations and its higher costs. I did not like the dilution and hit on our share price with many of Fiore shareholders bailing out because of their fears about Nicaragua. As long as gold prices remain firm, Pan does provide enough free cash flow to fund the very large exploration drilling budget in Nevada, and probably for Washington State drilling at Golden Eagle as well.
Bentouttashape wrote: The more I read about the Pan Mine, the more it shows how bad of a deal this Mine is for Caliber share holders. The updated MRE in the report shows a decrease measured and indicated resources of 68,500 oz of gold or approx. 16%.
Calibre also told us as shareholders at time purchase that this was a 50,000 oz/yr gold mine. Fact: This mine has never produced 50,000 oz of gold. Last year production was about 20% under that amount. So couple that with the 16% reduction of the MRE and this is what we paid 118 mil for.
So when I hear people saying what a good deal this was, I know those must ex Fiore shareholders, because for them it was a super deal, but for us old caliber shareholders, it's the worst deal of the decade. When I hear people saying Darren Hall should be CEO of the year, think again.
This stock would be so far ahead on stock price if not for the purchase of Fiore. And if this company purchases Condor, which is an even bigger gong show and we will see another plunge in stock price.