RE:RE:RE:Extremely undervalued!!bogeyfree wrote: Very interesting presentation, sounds very promising but I look at the volume and I don't see much interest. Undervalued? Maybe, but why aren't more people seeing this? How about the people who this was presented to? Is it Peru? Is it taking way too long? Better plays out there? Wish someone had some kind of explanation!
Good points. Lot's of bad luck did not help and that led to a change of approach and delays. That's led to investor apathy. I think the reason for the continued apapthy is that despite progress it's still all got to fall into place with no gurantees. As things do fall into place volume and price will increase. My take on events is as follows.
Covid broke just when they were due to sign with Glencore. Then the senior management of Glencore who CDPR negotiated the deal with retired which changed the Glencore perspective into realising just what they were signing away. That meant the deal proposed was shelved and CDPR had to look at alternatives for flotation facilities. Then the left wing government was elected in Peru. Throughout this CDPR had no income stream. All big negatives for investors.
Now it seems better relations with Glencore again who still want to exit (because the actual resource they own is depleting - CDPR own the surface rights) but they want to do so on better terms than agreed 4 years ago. Slowly, slowly progress has been made. CDPR have bought and developed the near by Santander mine which gives them an income stream and a small flotation facility. They are also developing a separate pyrite to hydrogen stream. Most encouraging though is the recent presentation confirming expected surface rights access to drill the tailings will be granted imminently. That should allow drilling in August and produce a 43-101 by the year end. They need that to confirm the resource which should allow them then to finalise a deal with Glencore. Also the 43-101 is required before they can list on a bigger exchange and move on from the CSE.
Unknown is any future deal with Glencore for flotation facility access, but Glencore lending $2m to CDPR to carry out the drilling and produce the 43-101 gives hope they are now on the same page. If so then an off-take agreement could follow and then production. Makes total sense IMO for Glencore to want access to the vast mineral potential production and do an off-take deal with CDPR. They need each other.
A deal would save Glencore closure costs to exit and also avoid Glencore getting into a dispute with the Peruvian government over the potentially multi million dollar clean up costs. Peru is a major mining centre and Glencore do not want that fight. At least that's the hope.
At long last there is some light and the end of the tunnel. Whether things go to plan we'll have to wait and see but the hope of what could be should now begin to attract volume. At less than C$50m market cap for the size and quality of the above ground resource, the Santander mine, the hydrogen project and the untapped in the ground resource the potential is immense.