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DEG

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$1.09 de grey mining limited

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OpenSeason

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20/09/23

23:32

Post #: 69946478
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Originally posted by Arh0070: ↑

Interesting report online today about the top 10 producing gold mines in Australia in the 2nd quarter .Production is down almost across the board and in total down about 9%.
They are owned as following Newmont (2) Newcrest (2) ,Northern star (2),goldfields (2) ,Agnico (1)Anglo gold (1).So Newmont/Newcrest if the takeover goes through will be by far the biggest player in Australian gold production owning 4 which are the bigger producing mines in the top 10.
Barrick does not have any and I can’t imagine it would be interested in DEG,they are committed to their North American operations .Taking over DEG and building the mine would be close to 4 billion AU .Of the top 10 all are busy with other projects other than Northern Star which I don’t know much about.
I Am amazed that their has been so little selling into the bad news about costs and timelines preliminary announcement in the DEG annual report .Any other announcement like this would have produced a 25% drop.DEG trading seems to be very controlled.
As previously noted and above the only thing in favor of a DEG takeover is the extreme weakness in the Australian Dollar making DEG A lot cheaper in US dollars,I personally can’t see it happening until it gets cheaper still.Borrowing money to fund the mine is risky business and puts the company at risk in view of ongoing gold bear market and extreme financial uncertainty worldwide with rising interest rates.
Artemis in Canada is attempting to do what DEG hopes to do ,build a big mine from scratch with no cash flow .They are well ahead of DEG and I think they may pull it off .They have a high quality management team which has done it before.They are much cheaper than DEG ,will have a big mine producing relatively soon with all permits and construction well advanced .They are developing the Blackwater deposit which has 10 million ounces .It was bought cheap when its prior owner almost went bust(ngd)developing the Rainey river mine.
I just think the same thing will happen with DEG (they will get into problems developing this big mine) ,have financial difficulties ,price will drop 25-30% and then a big boy will step in and buy it all for cheap ( its a good deposit but by no means the only good find worldwide).
Any Aussie gold bug who wishes to make an investment in a great gold company (priced in US dollars) should look at FNV ,fabulous company ,priced in US dollars in business 40 plus years and a dividend aristocrat .Much safer than DEG and protects against further falls in the Aussie dollar.This is not investment advice.
If someone wants exposure to DEg but not the risk, buying GOR is a decent spec ,owns 20% of DEG and has its own producing mine so has cash flow and money in the bank .If DEG ever gets taken (and its a big if ) over GOR would benefit.

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Pity you did not prefix "This is not investment advice" when you sold out at 17cents.

DEG Price at posting: $1.28 Sentiment: Buy Disclosure: Held
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Last $1.09		Change 0.010(0.93%)		Mkt cap ! $2.612B

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