Ann: Dacian Equity Raising Presentation, page-3

Hi sparkytrader1,

I had been combing through the qtrly reports and todays presentation on the CR and I couldn't find anything that raise my alarm. The drawdown to $16.8m (cash on hand) was primarily due to the low value hedge on the 13,400oz of gold @ $2,236 and the poor ore grade currently being mined in the month of Oct and Nov. This operation has probably resulted in more or less even cashflow whereas the cash outflow of $16.4m ($33.2m-$16.4m=$16.8) was primarily the result of the development capital and exploration cost. It is expected that come Dec 2021, there will be some much higher U/G ore grade being mined and milled and will generate enough cash to fund the expected monthly ~$8m for the development capital and exploration cost i.e. a breakeven month for Dec 2021. It is also expected that Jan and Feb 2022 will be breakeven months but from Mar 2022 onwards, the cashflow will now turn positive.

My conclusion is that $16.8m cash on hand as of 30th Nov, was considered as too marginal(safety margin is too low) to get the company through the following three months (Dec 2021 to Feb 2022). Once this cashflow hump is over i.e. from Mar 2022 onwards, the company will be generating good cashflow based on the better grade ores and more of them.

Hence I am quite confident that the management is as good as your other companies and by end of FY2022, DCN will be on a very firm financial ground even if gold price stays @ $2,500. Again key caveat is that the company deliver the qtrly guidance volume or close to it. I am also quite confident that this CR is going to be the last.

Good luck to us all and please don't invest based on my above analysis.

Cheers.