Definitely puts things back on a steady course again. Seems to me that there was some inside trading before this release as DOM was unusually strong beforehand even as others were falling. Good to see increase of reserves by 21000 oz but this was based on recent drilling (that should have increased it substantially) and still falls short of the amount calculated based on June 2008 reserve less mining (548000 oz). Good to see increase in resource. This shows only a small shortfall now from the calculated resource based on June 2008 resource less mining. However its not clear to me whether there has been any increase in gold price and cash cost assumptions. If not, there could be an increase to look forward to. Good to see production for July and projections for 6 months. So we now have a deal of certainty, although not totally out of the woods yet (that is, likely recovery to $3 plus SP). Would be good to see some informed estimate of NPV for this company.
DOM Price at posting:
$2.08 Sentiment: Hold Disclosure: Held
