Had done more reading on Half Year Financial Statement and I am shocked at what had been going on in terms of the "robbery" that was/is going on:
Please let me know if I am incorrect in coming to the following deduction:
DCN was forced into buying useless options of 150,000 ounces, at a cost of $50/oz i.e. $7.5mil out of DCN to the pocket of the financiers. This is money that could have allowed DCN to continue operations without the need to CR! I described it as useless because they are never going to be exercised @ $2,100/oz by 28th Feb 2020.
It makes me wonder if this is the price to pay in order to extend the repayment of the "Project debt Facility".
Again, it is looking like Leigh Junk is doing the right thing by DCN share owners to remove this "Project Debt Facility" (more like a DCN death trap!) and onto "Corporate Style Facility" loan.
DCN Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
