a broker also asks if rms is miner or investor, page-14

cdchi 1

How many presentations has DRM made in the last year, stating the same old same old? Andy well could turn out to be a 1000oz+vm deposit with a 10 year mine life and I have never said that it is rubbish.

As for EV/resource OZ regardless of what you (or I for that matter think) it is used by analysts as a valuation tool. I agree its correct purpose is to compare and identify stocks worthy of more investigation. The issue I have is that using an EV/ resource OZ, EV/ reserve OZ,forecast prodution, forecast reveunue, forecast CFs, forecast cost/oz, forecast margins or any other valuation tool including real option and monte carlo simulations, is that when you compare DRM to those who are already in production such as NST MML RMS KRM SLR (all narrow vein miners with excellent margins) DRMs valuation is still way higher. Not 1oz of gold has been produced and yet it is being valued above a low-cost, high margin producer with 500k-2moz in resources and producing 50-100k oz pa at a cash cost of < $800/oz who is making money now not later.

I repeat the project is not rubbish, the company is not poorly run in fact the exact opposite is true. They have a great project and fantastic management who are extracting every $ (and more) of the project and making fantastic returns. No-one in their right mind would complain about that and as a shareholder you would rejoice. The great capital stucture and smart management has made this possible.

All I am saying and have said is that compared to other projects and/or stocks AT this moment in time I feel that DRM is over-valued. Generally a stock gets to this stage due to hype/speculation by the masses - its called a boom.

I worked in the game for 45 years and now spend my days investing in GOLD stocks and right now IMO I would invest elsewhere simply because I believe that I can a better returns elsewhere.

I first bought this stock when it was 25 cents and have been in and out many times. If and when I believe (not the market) it is undervalued I will do so again. I may be wrong and have got it wrong plenty of times.

Having modelled HGNV deposits, mined and run , bought and sold, analysied and debated such operations. I do have a fair knowledge of what Andywell could turn into and produce and the returns it could POTENTIALLY make.

As you yourself said Doray is being valued at its potential. Well I suggest to you look at a producer with similar characteristics and compare DRM valuation using differnt methods to them. If you know how to do ROPV and MCs which take into account the potential upside you may just yet see what I mean. If not then always happy to disagree.