RE:If I get to choose.. CERT or RBX? It's a funny comparison ... The comparison you make is only based on the ounces of gold produced and completely disregards the free cash flow generated. Obviously, you are a beginner.
Cerrado's annual free cash flow
2020: $ 0
2019: $ 0
To finance its projects, Cerrado will have to issue new shares. When you continually lose money, there is no other way to finance yourself. It will be painful for the current shareholders. The increase in production capacity can indeed be a solution to obtain profitability but it must first be demonstrated that the acceleration of the depletion of mineral resources can be compensated by the determination of new reserves. Increasing its production capacity as a result of closing the mine faster is not a logical investment.
Robex Annual EBITDA:
2020: $ 69,314,423 / 6 cents paid in dividends
2019: $ 52,579,722
2018: $ 37,391,409
2017: $ 26,088,785
With 10 years of mineral reserves, an average exploration cost of $ 18 per new ounce of gold and with less than 1% of the territory explored, it could take a long time for Robex.
Robex produced 50,348 ounces of gold in 2020 and generated CAD $ 1,376 in free cash flow for each of those ounces. In other words, it's 11.5 cents of free cash flow for each share whose current price is 40 cents. We could also have fun comparing the objectives of the two companies ... But one thing is certain, Robex has financial results to ensure aggressive growth.
Eventually, Cerrado may be an interesting company in which I can invest. But for now, it's far too early to think about it. In the short and medium term, I sincerely believe that significant investments will be necessary and that shareholders will suffer.
@ Tree2tree: You should be wary of your level of understanding.