The Brains Trust - 2016, page-5835

CPD...Some rambling.
"Doing business" in Colombia.
I am hopeless in assessing explorers , but looking at CPD as a real vertically integrated business with MC under $10m.
It has equipment & licenses in place for the following activities.
# Buying concentrates or precious metals from numerous small miners.
# PM assays for 3rd parties....A full functioning lab.
# Smelting & refining Precious Metals for 3rd parties ( in the month of April it poured >100Kg gold for 3rd parties , or 3,500 oz....Refining cost is roughly 5% or approx. $300,000/month or $3m PA.
# Manufacturing various PM products (foils , Sputtering Targets, Crucibles etc..)
These activities will soon see CPD cash flow positive to:
# Grow the business.
# Fund its own exploration activities for alluvial PM in its substantial land holdings.
# Consolidating the fragmented mining sector in Colombia which is littered with countless small artisan miners (mostly illegal) via acquisition or JVs.
In short....A miner with no resource...No JORC ...But a good business .....A precious metals trader/refiner/ manufacturer....Exploration is the icing on the cake if successful.
A highly illiquid stock...Approach with care.