THE PAIN, page-4

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SEMS

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11/12/19

06:57

Post #: 41902147
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Originally posted by waiken ↑

Hi Sems
Ive been in DGR for around 9 years
I see the subs as to risky to invest in individually. Don't fall in love with this stock or the directors.
I halved my holding this year to derisk my investment. My remaining holding owes me 0.05. It was a tough decision but the risk level grew exponentially when SOLG was the only immediate driver of value and the Ecuadorian Indians came down from the Andes with clubs and spears and shut down the capital and sent the government packing. I don't think we have seen the end of this threat or the anti mining faction. They do seem contained and SOLG has great PR and employs lots of locals and does great community work.
AJQ has announced the JV with Santos which is not priced into the stock. AJQ still has massive acreage and I would see other JVs in the future. They should become cash flow positive by 3Q 2020. The replacement cost of plant purchased with Roma Shelf is 200mill.
The other subs look to be a few years away from returning some cash.
I believe NM acts ethically but DGR is controlled by him as long as Tenstar, directors and senior staff vote their shares with him he doesn't have to worry about the share price. His substantial shares and options in SOLG are more valuable to him than his DGR holding. Therefore he will act primarily to enhance the value of SOLG when in the medium term it may not be in DGRs interests. Eg when SOLG was 46.5p in May 2017 DGRs holding was worth around 160mill. If NM had held no shares or options in SOLG and didn't control DGR the controlling shareholders would have said. You are a great geologist Nick and you have a desire to build a National mining industry but we want to minimize risk and grab some cash while its there. The logical and pragmatic move would have been to sell 50-75% of SOLG shares and put the 80-120k in the bank. That would have transformed DGR. AJQ would have been lent 50mill at 9% making us 4.5mill per ann and would be further down the track. We would be self funding. Other subs would be further ahead. We could have bought other assets like royalty streams. We would be receiving a dividend of 0.01cps. Tribeca would be repaid. The price would be over 0.20.
NM is a star and has the ability to turn DGR into a 0.50 plus coy but as he says in one of the SOLG videos. I am a geologist by trade and an opportunist by nature. He should have added high risk taker. While he has control he will act primarily in his interests. I believe he will succeed in the long run. SOLG has enough cash to get to June 2020. I predict we will see a corporate move by then. If not SOLG will need raise another 25m at around 20p per share and limp on until another corporate move comes.

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Thanks Waiken,

That helps to ease the pain (a little) and I know that is the big picture, I have also been a long term holder since 2004 and saw 48c in 2007 with the Solomon Island initial results and unfortunately we haven't been back there since. I will continue to hold and I thank you for your encouraging post. GLTA.

DGR Price at posting: 7.7¢ Sentiment: Hold Disclosure: Held
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