end game looms, page-34

There have been some corkers on here downplaying DML but for me Ace's explanation of 'world class' takes the cake.

So lets focus on some facts relating to the 'world class asset' selection of some of the 'world class' players over the last 12 months:

1. Rio - $23bn+ asset writedowns,
2. BHP - £3.3bn+ asset writedowns,
3. Anglo - $4bn asset writedowns (after overspending on their Minas-Rio project by $9bn (!) for what was a budgeted $5bn project),
4. Vale - ~$5bn asset writedowns.

and so on...

The big players collective asset writedowns are close to $50bn, and what makes these world class performances even more special is that the primary pitch for the big miners is we have 'lowest cost of production' and 'unlimited access funding and liquidity'; ie. so even with these two advantages they managed to write off $50bn. That is truly world class. They belong in the leagues of the 'world class' European and US banks !

As for copper grade coming out of Chile and Peru - the biggest copper producing nations - the average is ~0.75%, and the world average grade is circa 0.85%%. So yes, grade matters !

I am by no means suggesting the big miners might or might not be interested in DML or Boseto, though your judgment is flawed if you automatically assume bigger is better and that the big player asset selection process is so superior and void of failure. If anything, I think they are lazier and rely on companies like DML to find 'hope springs' for their future.

For me, I am quite comfortable being invested in a small miner whose primary exposure is to a high grade single base metal where there will be a supply deficit in the medium term, instead of a 'world class' miner who has been spraying money around ineffectively. This of course comes at the cost of not having the advantages of the big players, which is what they need to work through, and will take time. I concur with Gocu's post about what is the best thing for DML going forward.

Lets see how this unfolds. Good luck to all.