Ann: Appendix 4D and Half Year Report, page-48

Thanks mate. If you have been reading my posts I wouldn’t have DRM in my porfolio of gold mining stocks and as a speculative stock I think there are some explorers that offer much more upside with similar if not smaller downside risk so it just doesn’t fit at the moment into any of my investment pigeon holes.

For example, and this is an example not cross promotion, you’ve got a company like CHN with 5 drill rigs spinning, acquiring new prospects to explore, $46 million in cash and liquid assets and an EV of near zero. The downside over the next few years is pretty limited as even if they have no success with their current prospects they still have more cash at their disposal than any ASX exploration IPO that I’ve seen for a very long time.

How long will it be before DRM have $46 million net cash from mining (not mining the market) and what will their mine reserves look like at that stage of the game. If this jawboned turnaround doesn’t follow through the downside here at DRM is about the same or much worse than holding CHN if there exploration drills don’t hit anything. On the other hand if CHN have success with their exploration 1 bag wouldn’t be hard to get. What EV would DRM have if it bagged from here and does anyone really believe it could do that with its current production level unless the gold price rises significantly?

I’m happy to track the two stocks against one another over the next 18 months a bit like I did on the WPG thread for WPG vs OGX at 5cents.

Let’s start.

DRM closed on Friday (2 March 2018) at 26 cents

CHN closed on Friday (2 March 2018) at 17.5 cents

Race is on. Good luck.Esh

P.S. I’ve said my piece on this stock for a while so I’ll move on and leave you guys to it. Good luck to everyone, we are all here for the same reason.

Disclosure: I have entered CHN recently but this post is genuinely written to give an example of value/risk/return between a miner and a pure exploration company so mods please see it as part of a generalised arguement in respect of the relativity of risk and reward between a miner and an explorer.