Cerro De Pasco Resources Inc C.CDPR

ONE UGLY BALANCE SHEET

[rockmoney]

Just looked at this company and its 2019 audited financial statements. Those are some of the ugliest financals I have ever seen. Where do I start?

How about broke. 

$275,000 cash and current liabilties of $739,000 on Dec 31, 2019. So they rasie some dough in early 2020. One stupid US$300,000 12% loan that goes to 18%! The two smaller rounds totalling about $930,000.

That loan was a desperation loan I bet in January. Management was probably getting calls on those $700,000 jn current payables. 

So on paper it looks like the lights are on, with net $900,000? I wish. Just check out the monthly burn rate - it's insane. Management is taking in fees and salaries at mouthwatering $80,000 per month and the total burn for people and G&A is like $180,000 per month.

So that net $900,000 is bascially gone as at May 31 2020 which is like now. Stock is sinking and they have to dilute agan and it won't be at $0.40. More like $0.25 maximum discount to current price is my guess.

Nice asset, but the company is a financial mess and horror show.

[ogod00]

snouts seem to be firmly planted in the trough, i agree with everytjing you say, to boot another company hit the wall recently with same business model and far better finances, also seemed like a no brainer

[ogod00]

am however long for the time being ... Glta

[BueBoy]

Let's leave judgement until the updated resource numbers come out and whether they close the deal by this month end. If so there should be a re-rating. They have 11,000 hectares to map in a known silver hotspot and will be taking on over half a billion US dollars of assets plus the resource for a bargain $30m plus royalties.  This will be one of the largest silver mines in the world with

[bogeyfree]

Very interesting (encouraging) and informative information! Thank you!

[Popeye82]

This post has been removed in accordance with Community Policy

[Popeye82]

This post has been removed in accordance with Community Policy

[Popeye82]

This post has been removed in accordance with Community Policy

[bogeyfree]

Thank you, very informative and promissing! That presentation was a while ago though,right? Did that bring new money in (institutional)? What's keeping the SP at this level?

[Popeye82]

This post has been removed in accordance with Community Policy