Ann: Completion of Bookbuild for Fully Underwritten A$130 millio, page-9

Anyone who reads a significant amount in the gold mining space can see the struggles of companies attempting to get a mine up and running in this environment of inflation ,rising interest rates and supply chain issues.
Just look at what has happened to Iamgold ,they are 56% complete in building a plant about the same size as what DEG proposes.
There are very large cost overruns and quite a lot of their management team have been “redeployed” due to problems getting the mine built and huge cost overuns.
Its just a fact of life right now for those attempting to build a mine.
DEG is probably at least 2-3 years away from starting to build a MINE.Current capital raise is to keep the lights on and fund the feasibility study and further useless drilling.
I have no doubt that this Tier 1 discovery will eventually be mined .The question is when ,by whom and at what cost.
At some point in time DEG management will have to acknowledge that the timelines they have set to build the mine and have profitable production are totally unrealistic .There is zero chance Goldfields will be involved you just have to see what their recent CEO interviews have to say .
Deg will also have to acknowledge that the costs they have estimated to build the mine in the pre feasability study are also totally unrealistic.
Going forward a lot will depend upon what happens to the POG,whether inflation is persistent or transitory ,most commentators indicate it will be persistent.
One poster mentioned Silver lake on which I have commented upon ,it is well run ,highly profitable, has 4 mines and is buying back shares ,its share price is down 50% and its value is less than DEG .Markets sometimes produce very strange relative valuations .Which is the better buy right now ???My bet clearly is not on DEG.
Time will tell who is correct .