Some important questions one might ask themselves when buying a stock with market cap under $100m
1. Has management got a History of providing Shareholder Wealth?
With the recent appointment on Mark Connelly I would say a big Yes ... with over 27 years experience in the mining industry, was instrumental as the MD of Papillon Resources when they merged with B2Gold Corp in a US $570 Million Deal and he was MD and CEO at Adamus Resources when they merged with Endeavour Mining Corp where he landed Chief operating Officer. Mark has also very extensive experience in the financing, commissioning and operation of gold mines. David Reeves has also been involved in the development and start up of 3 or 4 mines which is invaluable. The test of the Board all have exceptional mining experience.
2. Are the board substantial shareholders and do they buy on market?
The board currently have just under 10% of total shares, insto’s 25% and Keras 31% ( CAI board and management own 18% of Keras)
MD David Reeves has bought on Market twice in 7 months since listing both on market 23rd and 25th June 2017 and $100k + on market purchase over 4c on 15 February 2018. Very good to see!
3. Do I understand future News flow and business plan ?
With all the drilling planned 50,000 Metres, I expect their to be news galore especially with what was released on just 15,000 m before Christmas.. deep drilling planned for April > Which will be interesting! Business plan is to prove up a multi million ounce deposit (currently 700k + ) and produce 100,000 + ounces per annum for a minimum of 6 years.
Metallurgical Testwork, Environmental and Tailings Studies and Heritage Clearance work has all commenced to shorten feasibility study time ( Calidus have hit the ground running)
4. Does the company have sufficient funds on hand and do I expect their to be a cap raising soon which could hold back Share Price?
Current funds sit at just under $10 Million which hold Calius in extremely good stead for an aggressive drilling program (50,000m) planned for 2018. So I don’t think there will be any cap raisings anytime soon.
5. Is there many shares on issue?
Current shares on issue - 1,282 Million - came with the reverse takeover... I’m sure the board have something up their sleeve to reduce this in the future and I think it would be great question to ask them.
CAI is still very much under the radar but with the upcoming drilling campaign it could be a different story late 2018. Good Luck!
CAI Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
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