Chart - TA, page-2582

Explorer stocks have been badly impacted in the current market downturn .Some are very cheap.
The question is when will they manage to make the extremely difficult transition to a mine and cash flow .
In the current environment, established mining companies with cash flow and production are struggling to manage staff shortages ,inflation ,supply chain issues .
It is a total nightmare for an explorer to go it alone and try and establish a mine which cash flows (it takes at least 5 years).
I track a large Aussie silver explorer ,it has been waiting for permits to build a mine for at least 18 months .
2-3 years ago with low interest rates ,low inflation ,no covid ,no supply chain issues the world was totally different to the situation now .That is the reality .Read any mining company quarterly reports .
These are all extremely legitimate concerns about DEG ,its “go it alone strategy” to build a large mine from scratch without a partner with large cash flow is quite clearly doomed to failure in the rapidly changing macro environment .This is just my personal opinion as a private investor.
They either need a partner with loads of money or they need quite clearly to change strategy .Just drilling holes in the ground wont cut it.
I cannot understand why they didn't buy an existing plant to get into production quickly or just start off small and gradually build up production with cash flow .
The current value of DEG is about 1.5 billion dollars based on exploration success (which has been fantastic),the least little bit of bad news will drop this substantially in my opinion .This is why Pierre Lassonde developed his curve ,he is a smart cookie ,DEG is traveling along that curve currently on a downward stretch which will likely be prolonged .