DMM 0.00% 5.8¢ dmc mining limited.

one to watch imo, page-5

  1. 57 Posts.
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    Popeye82

    CFE(through Dempsey) own roughly 1/3 of DMM They purchased 2mill worth at 10c last year and then kept their percentage holding with the recent institutional raising at 25c if i remember correctly.

    My point with Tony Sage is that it appeared that their philosophy, is to purchase into companies like DMM when they are struggling, get involved help prove up the resource to a point where the company is worth much more and then sell the company (or their share). They are money makers, They won't sell until it is worth far more than they paid. With those funds they pay a dividend to their CFE share holders (last year they paid a 20c dividend from what he mentioned. not bad for a 60c stock)
    As an investor - this is just my take
    1) they prove the resource up and sell the entire company, all investors are paid back based on the selling price the new owners continue with the development of the resource
    2) they sell part of the company- perhaps their share. This could provide a basis for a new share valuation all other share holders still hold their share.
    There are probably many ways they could do it. Overall my take on it is that they are good at increasing the value of a company, once they do that they want out. An increase in value for all shareholders is a positive thing
 
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