Good morning Timbin.My view on the DCN turn-around story still...

Good morning Timbin.

My view on the DCN turn-around story still hasn't change but must admit the belief was shaken up a bit given the poor Dec qtr report.

If DCN can deliver the production guidance of 28Koz or more (i.e. more if DCN manage to catch up on the delayed U/G mining), then DCN will generate positive cashflow possibly in the range of $3-8M after all deductions of Capital Development and Exploration.

If the above pans out, then it is possible that we maybe looking at 40-50c price range. However this will have to be aided by gold price hitting US$2,000-$2,100 range which will then set the base price of perhaps 25-35c for DCN to leap into the 40-50c range.

At this juncture, there is some hope but certainly there is nothing to stop us from dreaming!

Yes gold price is getting ever closer to the psychological price of $2,000 and once breached then $2,070 will be the next huddle (hoping that March is the month that $2,070 will be breached).

BTW yesterday DCN price action in breaking down the 22c wall was very encouraging. Based on the way the huge wall was swallowed up, it was looking like a shark was on the prowl for DCN shares. The recent purchase by the hedge fund Regal Funds Management is another very positive sign that DCN share price may be on the way up.

Very nice overnight gold price action:



Cheers.