RE:Market cap of 101M is an insult! Hello Trg418,
Is a market cap of $100 million actually an insult to Cerrado? It is important to understand that despite sales of $18 million in the last quarter and $48 million for the first 9 months, Cerrado is losing money in both cases. Despite the interim results presented recently for 2021-Q4, the game is not won. Cerrado is a young company and believing that it could become very profitable still requires a lot of confidence and optimism.
I agree with your comments about gold. Nevertheless, these comments can apply to all gold companies. Consequently, I think it would be better to dwell on what distinguishes Cerrado from all the others. Beyond their great ambitions, I consider that it must first prove itself by demonstrating its ability to reduce its production costs significantly. Also, the mining royalties that Cerrado must pay are significant and further reduce its ability to generate positive cash flow.
From a strictly accounting point of view, Cerrado's market capitalization is not surprising. All that could change but Cerrado will need help from mother nature so that the gold grade is maintained and the economic environment is favorable for POG. Good luck.