When you actually realise that we hold 6.8% of SOLG which holds the Cascabel Mine in Ecuador....and we are only a $23M MC company....you realise we are a pretty safe bet particularly in a jittery market.
As it stands right now our stake is valued at AUD $46M - exactly double our MC. This doesn't include our cash at bank circa $3.5M and other assets.
We are SOLG's 3rd biggest shareholder behind BHP & Newmont - both with circa 10%. So talk about a strategic shareholding.
Cascabel is considered a Top 20 mine globally in value with a USD 3.2B after tax NPV....28 year mine life (minimum) & 85% of the Cu / Au / Ag resource already proven.
All things from now are geared towards production commencing within 5 years max.
It's not hard to see DGR swept up in a takeover at this ridiculous MC sooner rather then later.
You have 3 esteemed European brokers with a 12 month price target circa GBP 60.00 for SOLG.
This would value DGR's stake at AUD 241M.
So yeah, you would think 10 cents is a valid short term SP target as a first stop....
GLTAH
DGR Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
