Currently processing around 1500 tonnes a quarter and this obviously needs to significantly increase. You would hope this will increase now that they have upgraded the underground infrastructure. Next quarter they are planning to put another 200 tonnes through to asses the grades from another prospect at Traira East. It would be great if they could get economical grades from another prospect and explore whilst processing as they are at Ze Vermelho. If this could coincide with cyanide circuit improving then maybe they can get back into the black and avoid CR. If they do that then the last CR seems like it was a pretty good move.
What can the current processing plant handle?
I dunno, I think at the current market cap there seems to be value. Could still be some difficult times ahead with uncertainty but at the moment CGM seem to look pretty reasonable to me compared to other explorers with no possible way of ever avoiding CR after cash burn.
CGM Price at posting:
2.6¢ Sentiment: LT Buy Disclosure: Held
