RE:RE:RE:news Heap leaching is a way to recover some of the costs associated with moving ore that is too low grade to be processed at the plant.
Will the additional revenues be sufficient to offset the costs required by this process; the repayment of the new credit facility and losses from the MDN plant? If this decision has been made, we can assume that it will be profitable.
HOWEVER, the profitability of this exploitation will always be precarious because overall, production costs will remain high and the royalty system will continue to exist.
To answer your question, I consider that the lack of predictability of the results means that I cannot establish an entry price. Quarter after quarter, I check the statistics table in Cerrado's reports and the conclusion is always the same. The challenges are many for Cerrado.
A market capitalization of $58,000,000 and an annual production of 50,000 ounces, that may not seem expensive. But if it's to get a profit/loss balance, how much is Cerrado worth?
Despite all the favorable expectations for an increase in the POG, I am unable to consider that above US$1700 is insufficient to obtain substantial results.
Up to you