Cost ConcernsCosts proved disappointing due to the impact of the Brazilian real’s depreciation against the U.S. dollar and a temporary increase in irregular operations.
Dilution ImpactFurther dilution is now inevitable, and shares cannot reflect the underlying fundamentals until the $200M optional equity raise is completed and the level of dilution is clear.
Stock ValuationThe downgrade from Outperform to Market Perform is influenced by the belief that further dilution is inevitable, impacting the stock's ability to reflect its true value until the equity raise is completed.