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DCN

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28.5¢ dacian gold limited

Ann: $A26m Placement and Withdrawal of Entitlement Offer, page-30

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eshmun

12,259 Posts.

3833

21/12/16

13:50

Post #: 21488387
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Originally posted by eshmun ↑

You are being very hard.

You don't know what agreements DCN had in place with the lead managers and when those agreements were signed. My take is once you sign on the dotted line you can't pull the offer out from under the market unless you have specific out clauses. If anyone is to be blamed I think it more likely the brokers who took the offer to the market. Clear to large and no appetite given the falling sentiment in the sector.

RW is a class operator with a fantastic track record. Look at what they have managed to achieve in such a short time. Whatever you say this guy will be continued to be backed by the market. Wouldn't be surprised if he doesn't pull the debt funding rabbit out of the hat very soon.

The equity raising was safer for shareholders as you don't end up with receiver and managers knocking on the mine gate if you end up having hiccups and can't meet your debt convenants on time.

No real harm done here IMO.

Just another good opportunity for the future if you can time the entry well.

This will grind along for a while but the price catalysts are

1) the debt funding rabbit
2) a take-over offer
3) a sharp reversal in the gold price which I don't think is out of the question next year. In fact I rate the probability quite high as the euphoria of the Chumps fortress America dream wears thin and the reality hits that interest rates, bond yields and inflation take the punch bowl away from the party.
4) not to mention the perilous future of the EU, the Euro, the European elites and the European banking system. And don't believe US banks aren't tied into that mess. Why else would JP Morgan be the lead saviour of the peripheral MDPS bank? They all go down together that's why.

We are at the pinnacle of these distrorted and corrupted markets. Not long to wait now IMO.

Eshmun

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Rabbit came out of the hat quick smart and project is progressing on schedule. Class act.Esh

DCN Price at posting: $2.05 Sentiment: Hold Disclosure: Held
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0 Great analysis

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