A quagmire of BS can get posted on HC, but Flinty you're one of the good ones. Since you joined HC you've provided quality posts. Thanks for your input and keep up the good posts.
In terms of DCN... that last update (lowering 20/21 guidance) was a bit of a blow but not enough to shake my faith and right now I see 4 reasons to stick the course.
- Gold price still very bullish (yes DCN is heavily hedged, but not fully)
- Upside from exploration (near term - Phoenix Ridge)
- Westralia still has ~195k of UG gold reserves (to be mined in future)
- Leigh Junk tells it how it is
DCN still has large reserves of UG gold that are currently not in the 3yr mine plan. If point 1 or 2 play out, the case to accelerate the 're-ramp' of UG production will grow.... and in the space of 3-6months DCN would increase it's gold output by 30-50% (unhedged) at very profitable margins.
The Westralia reserve is not going away and the company is putting together a plan to optimise all of the UG operations, success at Phoenix Ridge will only bolster the economics of that output.
Yes the first 2 points are relevant to pretty much all goldies, but with an existing 110-120k PA ounce operation and a poltry mkt cap of ~$170mil I think there is more upside than downside value in DCN.
Below is a overview of their resources and reserves taken from the company update earlier this year.
DYOR
