Cos at spot USD Gold price and spot AUDUSD exchange rate assuming 90,000 ozs pa next 12 months, DRA should be making abt 55 mill ozzie bucks pa gross .... they have finally turned the corner and represent a marvellous proxy to the gold price which technically now also looks like it is set to soar ... in whatever currency you like ..... and fundamentally supported by fact so many trillions of dollars of paper currencies, now needed to try and keep the financial system as we know it alive, will have to be ultimately realigned according to some kind of reality ... GOLD.
Furthermore for the faithful amongst us, the Old Testament cites the only real currencies as being Gold and Silver and Nostradamus further predicts something along the lines "there will be a scramble for the yellow metal as the global financial system collapses" ......
So there you have it Daisy ...... FAITH and COSMIC SMOKE to support the TECHNICALS and FUNDAMENTALS haha .... whilst the Company is also pointing to same based their current buyback strategies and nearing final unwind of the hedgebook.
If u are a believer in the fundamentals of GOLD from here on, then DRA represents one of the best emerging, increasingly unencumbered proxies for high leverage play, and the biggest mistake one could make under the circumstances is being conned out of their holdings by what are mandatory short term technical movements now within its general long term uptrend ..... with GOLD price.
Personally place more emphasis on my own cosmic smoke analysis haha ....... bit like the Oracle with her own cosmic smoke at ancient Delphi haha.
Based my expectations of Gold's likely evolutionary path toward a likely peak y2011/12 price /time target (Fibo 13 years from its primary cycle start in 1999), reckon we will see DRA at many multiples of current price setting new highs by then and supported by a decent annual YIELD (dividends).
Key to maximising the outcome for us will be in its resource base growth in meantime, as well as bringing on that third mine Orivisi to achieve its target 125,000 ozs pa by then as well. Dont forget also that 20% free carry at million oz Zara prospect really hasnt yet been included in the calculations .... might end up adding another 20,000 ozs pa increment in due course if the resource base supports.
Dont also forget that as POG increases, resources also automatically increase as lower cut-off grades are used ie lower grade ore now considerd sub-economical becomes economical and part of resource base at the higher prices. Havent seen any sensitivity effect to resource base with lowering cut-off grades with increasing POG ... might be very significant.
DRA's accumulated 70 mill losses will also add a bonus benefit to its early positive cashflow.
IMO now in temporary consolidation phase atm within flag-pause after achieving a 100% quantum "post" size. Suspect the next move will be of similar magnitude from 7.5 flag mid point say, to take it straight to the upper channel target of the LONG TERM resistance channel and thereafter begin its right shoulder creation 10 - 15 range in preparation for later primary launch with Gold / AUD / Production Rate macros drivers.
Most of old stale holdings will come out in 10 - 15 major consolidation range IMO ...... technicals again supported by fundamentals evolution ....... at around around a USD 1000 / oz spot price.
I work in logscale so the prospect of ensuing breakout later from the coming major right shoulder is what really excites me given the lows of 1.5 and shoulder resistance about 15 if u get my drift. More than happy to wait til 2011/ 2012 for my two orders of magnitude revaluation from its lows expectation ... and I will be praising Apollo or Odin or probably both if only half "right" haha.
First need to see it "do the time" inside the 10 -15 right shoulder channel to increase confidence in primary call. Technicians would know exactly what I am referring to ....
Gold price is the key and ultimate driver of course. Atm POG is gyrating wildly just beneath its MAJOR breakout trigger circa USD 933. It has already broken outin AUD terms. DRA's share price here is affected by AUD gold price which IMO is headed for 1800 soon (cf spot 1457 atm)
IMBOOC
DRA Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
