Post by
Tree2tree on Jul 15, 2021 8:05pm
From the new research report (company sponsored)
"We also believe that Cerrado's current market cap of $104 million CAD ($83 million USD), using Cerrado's fully diluted share count of 84 million, does not adequately reflect current production and expected free cash flow at the Argentina mine, or the strong prospects of the MDC mine in Brazil (whose initial PEA in 2020 suggested an after-tax NPV of $430 million, using a 5% discount rate). We also expect the projected value of MDC to rise further after the company conducts a new PEA. Over time, we expect higher production and updated resource reports to drive increased investor interest in Cerrado, and narrow the gap between the company's market valuation and NPV."