Calidus Resources financial restructure announcement

Calidus Resources Limited (ASX: $CAI) has announced a financial restructure aimed at positioning the company for strong growth in cashflow and production. The restructure includes a A$16.5m placement, restructured hedge book deliveries, and debt repayments to support the company's three-year strategy to deliver 120,000oz per annum.

Executive commentary on financial restructure

Calidus Managing Director Dave Reeves stated, 'This financial restructure will deliver a host of substantial benefits to Calidus, headlined by increased production and cashflow this year. This will in turn help us achieve our target of producing 120,000oz per annum within three years. We are at an inflection point at the Warrawoona Gold Project, with gold production rising significantly in recent weeks as we see the benefits of the completion of the Klondyke cut-back and initial Blue Bar ore.'

Summary of Calidus Resources financial restructure

Calidus Resources has received firm commitments for a A$16.5m placement, with strong support from both new and existing shareholders. The company has also reached an agreement with Macquarie to restructure hedge and debt arrangements, resulting in an additional ~A$31m of free cashflow in CY24. This significant increase in cashflow generation will enable Calidus to organically fund the pre-strip and A$17m capital cost of developing the high-grade Bulletin deposit in the second half of CY24. Calidus re-affirms its H2 FY2024 guidance of 32,000-37,000ozs at an AISC of A$2,100- $2,400/oz and anticipates releasing a JORC 2012 Mineral Resource Estimate on initial oxide deposits at Nullagine in Q2 CY24. The company is also in discussions with third parties regarding potential refinancing options, including bond financing, to further strengthen its financial position.