Firstly, I don't believe I didn't "get" this earlier with all the hints thrown at me. Management stated on numerous occasions that majors were buying up the land around Juruena. Obviously this explains why they are no longer interested in doing a scoping study for Juruena if they intend to try to sell on Juruena. A scoping study would show the way to production for CAS. BUT, since CAS it seems hasn't any intentions on getting Juruena into production themselves, a scoping study would be a waste of time and money. CAS now it seems are only interested in proving up as much of a resource as possible, sell off this proven resource to another party who will run their own affairs regarding infrustracture and so on .....
As far as how much is it worth, I don't have not much of an idea. Maybe they could prove up a 1 Million plus ounce resource over the next couple of years (pure guess) at say $20 a tonne ( once again a pure guess). So $20 x 1,000,000 = $20M ???
But since management seem to think that drilling will be done at least over the next couple of years, don't expect to see a sale until at least 2020 I'd say. However it will be interesting watching the results coming in over the next couple of years.
Just to end. I understand that management needs to change things if a better option comes forward. However, I'd like management to understand that this flip-flopping (lack of a better word) has been detrimental to times/timetables. Management must be starting to realize that the general inaction over the last few years due partly or even mainly to changing the direction of the desired goal has meant little progress has been made on some projects. The result has been the share price you see today with investors down in the dumps and capital raising at rock bottom prices (too much dilution). My personal average is around 30 cents a share. So CAS would need to be five times the current price for me to just break even. That would equate to a market cap of around $100M (assuming no more dilution!). I simply can't see this amount of recovery happening for a long time yet, and I often think that a possible recovery in the share price to even get close to 30 cents wouldn't have been so arduous if there wasn't so many additional shares added to the register at such low prices. I hope management are also mindful of this. This amount of dilution at these low prices are killing long term investors like myself.
I'm also starting to wonder what's next? As in, are CAS going to solely be relying on Borborema if Juruena is sold? Or do they have something else they want to spend money on, hence the sale of Juruena. I figure any money obtained from Juruena (2020?) will be too late for Borborema capex (2019?). What ever happened to the Lithium deposit? News seems to have dried up on that one.
CAS Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
