Cerrado Gold Inc V.CERT

Open your eyes wide

[ABDPhil]

On the one hand, you have a mine that is now operating at maximum capacity and is unable to generate profit. Not having sufficient funds, Cerrado used outsourcing to limit the investment required to start up its gold mining operation. Much of what is needed is therefore supplied by other companies, which severely limits its ability to generate profits. In addition, Cerrado has to detonate the rock to extract its ore, which is absolutely not a low-cost mining model.

The problem with this gold mining operation is structural, which implies that in order to reduce its costs, it will have to invest large sums and, ultimately, carry out the tasks by itself. Considering its current inability to generate substantial profits, it will have to obtain this capital by financing itself on the markets and diluting its shareholding. If nothing is done, you can say goodbye to profits. In both cases, you will be the losers.

Regarding the exploration permit, there may be potential but to demonstrate it, significant drilling work will have to be carried out. The level of knowledge of this permit is still very limited, which implies that the investments will be important, as well as the time required. In addition, no mineral reserves have been demonstrated so there is no indication that this permit could eventually lead to economically viable exploitation. Here again, Cerrado will have to finance itself in the markets and dilute the shareholder base to continue its drilling work.

Cerrado's potential is very present, but success is essentially based on financing and therefore on the dilution of the shareholder base.

Honestly, I wonder why it is I who must explain such obviousness to you. You have in front of you all the explanations to understand the arrival of Cerrado on the public market, financing, financing, financing, ... 30 cents and many more shares is the final destination.

Don't think you're smarter, there are good reasons why Cerrado is under the radar.