Member Info for lukish

Extract from the latest corporate update from Cerrado Gold dated on Lagoa Salgada (https://youtu.be/unm49D73U-0?t=302 at around the 5:02 mark): “we have already completed a feasibility study on [Lagoa Salgada]. We're updating the feasibility study and we're at the permitting stage. We do have an environmental permit that we submitted. It was declined. So we're working through the government with that. We have been in discussions with them. We've talked to the various ministers and we believe we found a solution. So we are doing another – their concerns are around the water and the lowest aquifer and so we've mandated or hired the University of Lisbon to do a water study on that lowest aquifer which we have already collected data on ourselves. So this will be an independent study for the government but so we're pretty sure how that's already going to turn out and that it'll be positive. With that, we think that we can move this project forward to the next level. So, right now, our best guess is that we're looking for a construction decision in late Q3. And then we could be breaking ground next year on this project. And that would on an equivalent basis give us about another 75 to 100,000 ounces of gold production on an equivalent basis per year”.

I presume they will release the updated feasibility study if/when they get the permit.

Interesting recent article on Lagoa Salgada https://observador.pt/2025/11/14/promotor-da-mina-de-cobre-da-lagoa-salgada-deixa-cair-substancia-toxica-e-volta-a-tentar-aprovacao-ambiental/ (without paywall at https://archive.is/pMP2a). Here’s the rough Google translation:

"...the new processing circuit will be based 'exclusively on a conventional flotation process, using reagents commonly used in the mining sector, namely collectors, foaming agents and modifiers, with proven effectiveness and a significantly lower hazard profile'. This change, it is argued, 'will eliminate the risks associated with the use of sodium cyanide, namely the potential for contamination of the environment as well as for the health and safety of workers.'

[...] The project gained PIN (potential national interest) status in 2022 and represents an investment of 196 million euros.

The new strategy [...] allows for the "production of a polymetallic concentrate that not only captures a part of the gold and silver content, but, crucially, allows the economic recovery of lead and vanadium. Although silver and gold recoveries are lower than those that could be achieved with cyanide, the process gains significant value by incorporating lead and vanadium content that was previously ignored."

Vanadium is described as "a strategic material for energy storage and the manufacture of metal alloys, adding even greater relevance in the context of European strategies for critical raw materials." This material is used in batteries.

Lead has an immediate commercial value, so the change in the "metallurgical philosophy" from selective recovery to comprehensive extraction significantly enhances the economic viability and sustainability of the project. The documents presented point to a reduction in investment of US$15 to US$20 million and an increase in NPV (net present value) of between US$7 and US$12 million over the life of the mine, which is 11 years after the start of exploration, and whose start-up can take two years after licensing. [...] The project's footprint has been reduced by about 28.4 hectares to 41 hectares."

A more detailed overview can be found in the PPT presentation (in Portuguese) submitted to AIA around 13 Nov. 2025 here https://siaia.apambiente.pt/AIADOC/AIA3778/volumei-rnt_art16_lagoa%20salgada20251112121951.pdf

apologies for double posting...

Financial Features • Lumpy revenue and working capital cycles, good margins, high barriers to entry, scalable • In October 2015 we revised our 2015 forecast downwards due to contract delays • 2016 confirmed order book at record high Strategy • Improve margins through organic growth and improvement • Continued investment in workshop facilities to facilitate larger projects • Focus sales and marketing on repeatable, long-term projects by nurturing long-term strategic alliances

Financial Features • Lumpy revenue and working capital cycles, good margins, high barriers to entry, scalable • In October 2015 we revised our 2015 forecast downwards due to contract delays • 2016 confirmed order book at record high Strategy • Improve margins through organic growth and improvement • Continued investment in workshop facilities to facilitate larger projects • Focus sales and marketing on repeatable, long-term projects by nurturing long-term strategic alliances More here http://paragonent.com/documents/PEL_AGM_2015_final_presentation.pdf

the fact that they don't exaggerate their future profits, but rather give conservative estimates. It makes for a nice change from other AIM companies... I've just bought some shares as I think this price is a very good entry point.