CJO 0.00% 13.0¢ cerro resources nl

barchart rates cjo a buy, page-9

  1. 62 Posts.
    Pete, I wouldnt jump in blindly. The biggest issue is the ongoing delays with the release of the BFS on the Cerro Del Gallo mine. I think the market has no confidence when (or if) this will happen. Even if the study is released (although we are fast running out of trading days before their last commitment of 1st Quarter release is missed) it will likely show that funds are needed of around $80M to fund the mine. It is pretty clear from Goldcorp they wont be coughing up the cash. This means there is a risk of a capital raising, which in my limited share market experience over the last two years with shares has always lead to medium term price decreases. (that may just be me pickin' em badly however).
    If I had my time again I wouldnt touch this stock till the BFS and any funding announcements are made. I'd be happy to wear the higher purchase price for the risk reduction. Unfortuantely Im in now with a 28C buy price and sticking it out for now to see what happens with the BFS release and funding.
 
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