Colossus Minerals Inc. (COLUF)

[benandemmiboo]

(from stockhouse)

A devastating report by Joseph Fazzini of Dundee Capital Markets has seen the share price of Colossus Minerals (TSX:T.CSI, Stock Forum) tumble 11% down to $0.61, continuing a fall from $0.86 earlier in the month.

Already under pressure from technical challenges in its Serra Pelada project in Brazil, Fazzini held nothing back, stating “given the technical challenges encountered (brought on by water and challenging ground conditions), realizing [potential opportunities] now appears a less likely scenario for the shareholders of CSI.”

It continues, “In the case of CSI, we believe the options for raising new capital are few and expect that any future cash injections would likely be arranged under highly punitive terms. The prospect of adding further financial burden to what is already a leveraged capital structure in the context of a soft metal price environment has us concerned.”

“Given our lack of balance sheet comfort, management’s failure to budget and operational challenges that remain, we are downgrading CSI to a SELL (from Neutral) and reducing our target to $0.50 (from $0.80.”