The company was not in good shape when he was brought in and the previous incumbent misled the market in my opinion. LJ cleared the decks, recapitalised, got the team working, and has been delivering gold. Then he brought NTM into the company which will give a second mining centre at nearby Redcliffe and take advantage of the processing plant at Mt Morgan. Hedging and debt has been reduced and DCN now has a respectable net cash position following the latest placement. Ed Eshuys does not strike me as an idiot and came into DCN with NTM while DGO retains its interest. I guess this quarter's result are needed to give proof that DCN has addressed the operator shortages adequately and picked up mined grades but clearly action has been taken fairly promptly. The only thing that LJ has not been able to do yet is hold the SP up. The merger excited the market to some extent at a time when the POG showed some strength and the SP increased by 57% to 55c or so but then there was a significant downturn in the POG from the start of the year through to the end of March and the gold space turned sour as a whole. The current SPP is keeping the SP down but that is hardly a surprise. All things being equal, the SP should respond as production meets target and reserves/resources increase along with an updated LOM plan in Q3.
DCN Price at posting:
27.5¢ Sentiment: None Disclosure: Held
