any better valued gold producer than dra??, page-9

jockus, they were the costs for the last quarter, the average cost of production for the year was lower.

Trading at 10c means nothing

Trading at a market cap of $74-$80m means something

MEANS IT'S DIRT CHEAP

You say grades of 2gt-5gt are too low, this is over the whole resource. Go checkout what some of the larger producers are mining. KCN's resource is 37.1mt @ 1.2 g/t

TAM - market cap $237m
resource less than 500k ounces and costs US$750 per ounce.

DRA is 3 times cheaper with more than double the resource and operates at lower cost.

There are a few reasons why DRA is currently so cheap and the biggest reason is the large seller that held the price down for months.

Secondly, it's only recent that the company has become and unhedged producer.

So if we assume a $US500 margin and lets say DRA can produce 75,000 ounces per year, that's $US37.5m or $40.8m EBIT

Find me a unhedged gold producer with a PE of less than 2.