It may be difficult raising funds in the current market, I was wondering how CJO would raise $80m to develop Cerro De Gallo.
This is a substantial amount of money with the current market capitalisation of $157m.
We all know that CJO is worth more but this company appears to have a massive funding overhang.
They probably would have to go as low as 15cents to go ahead at a about a 1 for 1 rights issue, I think institutions are therefore waiting on the sidelines until the funding arrangements are planned.
Further discussion/reassurance would be appreciated as the recent investor presentation successfully managed to dodge this topic.
CJO Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
