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  5. CDPR: Eric Sprott owns 16% of this company and it has more than doubled over the last year. [Cerro De Pasco Resources]
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Investment Q&A

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Q: Eric Sprott owns 16% of this company and it has more than doubled over the last year. Does it have the future prospects making it worthy of purchase?
Asked by David on May 12, 2025
5i Research Answer:

As a developer in Peru, it has no revenue, losses and negative cash flow. Risks should be considered very high in general. But recent assays have been good, and its projects certainly have potential. Eric now owns 17.2% and we find it a bit interesting that he owns this directly and not through one of his many holding companies. Still, keep in mind he owns dozens, if not hundreds, of positions in junior mining companies. The company does not have a lot of cash right now, and an equity issue would not surprise us. Momentum is solid and we would consider it a good prospect in the higher-risk developer category. Its tailing project has 432M ounces of silver, and extraction costs are cheaper than a full mine. There is a LOT of work still to be done here, but the management team we think is decent.