some info on dml

I think the people that were going to sell have now sold and things can start to recover
This is a copy and paste that a few may find of interest


Discovery Metals Ltd (DML) – $0.18/share
Recommendation: Buy
Price Target: $0.80/share

EVENT
• DML has provided an operations update for May.
ANALYSIS
• As expected, May delivered month-on-month improvements across the board at Boseto. We have not made any material changes to our valuation based on the May operations update. DML produced 1.7kt of copper and 75koz of silver for the month, representing a monthly record for the operation.
• DML’s key focus remains the mining of sufficient ore feed to allow the plant to maintain design throughput rates. Therefore, it is encouraging that DML has achieved a record material movement of 3.24Mt and has now achieved four consecutive month-on-month increases. The copper grade mined from the Zeta pit was also at an improved level of 1.35%.
• DML mined oxide and transitional material from the Plutus pit during May. The average copper grade of this transitional material milled was 0.93%. First sulphide ores from Plutus are expected to be mined in June and the grade will improve. Importantly, the Company now has two sources of ore feed.
• Copper and silver recoveries were in line with forecasts and continue to demonstrate that the plant is able to operate effectively.
• As shown in the charts below, mining rates and concentrate production continue to trend higher. However, it is concerning that the milled throughput rate remains well below the plant’s design level of 250kt per month. During May, 168kt of ore was milled.
• DML expects the plant to be operating at design throughput for its first full month in July. This was expected to occur in June based on DML’s previous guidance provided in May.




• In May, DML called for bids from interested parties and opened it books to due diligence. The Company set a closing date of 10 June for binding proposals. DML announced yesterday that it is discussions with interested parties in relation to a potential transaction, but no further information has been provided. Overall, we believe the positive progress being made at the operation bodes well for this process.
EARNINGS IMPACT
• No impact.
RECOMMENDATION AND PRICE TARGET
• Maintain our BUY with a Price Target of $0.80/share.


Regards,

Mark Savich, CFA
Resources Analyst