The company is an explorer. The only way they can make the step to miner is to raise funds. DML has done this by a mixture of loans and SPP. If you want a company that doesn't do SPP stick to the major bluechips that are already well established, and as we all saw during the GFC, even some of them did SPP. With no funds raising, the company goes no-where, just keeps asking for more money to drilling. Also, because of the nature of their leases, it is a use it or loose it.
Analogies only go so far and investing in explorer to miner companies is different to real estate where you have capital depreciation allowances, tennant problems, mortages. DML is not buying a fully built house, it is buying a block of land and doing the developing yourself. If the company doing the developing is offering a 20% reduction, they have either cut costs (no landscaping, no carpet, no fittings) or were charging too much in the first place and you have been dudded, you didn't do your research.
Buying into a company such as DML allows you to leverage to the price of copper, into a company making the jump from explorer to miner, where big profits can be made and into a company that has huge areas ready to drill up. In ten years time, they could have another 3-4 mines needing funding and I will still be buying into their SPP with my ears pinned back.
DML Price at posting:
$1.09 Sentiment: Buy Disclosure: Held
