Calidus Resources reports strong production and financial performance for H2 FY2024

Calidus Resources Limited (ASX: $CAI) has reported a 26% increase in production at the Warrawoona Gold Project during the March 2024 quarter, with 15,118 ounces of gold produced at an all-in sustaining cost (AISC) of A$2,429/oz. The company also confirmed its guidance for H2 FY2024 at 32,000-37,000 ounces. Additionally, Calidus Resources held $12.4M of cash and cash equivalents as of 30 March 2024, after a $8.0M debt repayment and $6.8M spent on development and growth activities.

Executive Commentary on H2 FY2024 Performance

The strong production results for the March 2024 quarter reflect the successful completion of the cutback in the Klondyke open pit, which has resumed access to the main orebody and reduced material movement and mining costs. The initial treatment of Blue Bar ore commenced in the same quarter, with the majority of ore from Blue Bar expected to be treated in the June quarter, driving a significant increase in production. The exceptional RC drill assay results from Bulletin have increased confidence in the Mineral Resource Estimate and highlighted significant mineralisation extensions at depth. The company's financial position remains robust, with $12.4M of cash and cash equivalents, and a 40% increase in gold sales during the quarter, totaling $40.5M from the sale of 14,153 ounces of gold at an average price of A$2,859/oz.

Summary of H2 FY2024 Performance and Outlook

Calidus Resources' strong performance in the March 2024 quarter, with a 26% increase in gold production at the Warrawoona Gold Project, sets a positive trajectory for the company's H2 FY2024. The successful completion of the cutback in the Klondyke open pit and the commencement of Blue Bar ore treatment are expected to drive a significant increase in production for the upcoming quarter. The company's updated Life of Mine Plan at Warrawoona, including the incorporation of the Bulletin deposit, outlines a production guidance reaching 120,000ozpa over the next three years, driving cashflow and project economics with greater scale and leverage of existing infrastructure. Additionally, the new production guidance and life-of-mine plan do not include the upside potential of the Klondyke extensions, Nullagine Gold Project, and Haoma JV, indicating further growth opportunities. Calidus Resources' robust financial position, with $12.4M of cash and cash equivalents, and the restructuring of hedge and debt arrangements, provide a strong foundation for the company's growth and expansion plans.