DRM (ASX) Ann: Doray Announce Significantly Improved Life of Mine Plan

Originally posted by flaming ↑

@eshmun

Regardless of your doubts.....the stock is heading higher....breaking out punching through the resistance. People are working out the now DRM and not the 2016.......2017 DRM.
It appears to be the lowest cost junior producer in ASX only second to AMI.
AMI is not cheap.
But then you would know better.

It makes no sense to compare DRM to BDR. They both operate under totally different metrics and conditions. Not much sense in comparing to RMS & SLR. They both have a much larger production profile.
You can compare DRM to MOY or RED5...........from my observation DRM is primed to be the first one to run out of the racing gate. It already has by the look of it.
Then again you would know better.

It would have been nice to give an update on June quarter..........but will be out by the end of the week if not earlier. My estimate is the cash on hand balance should be 23 million + 8-10 million profit + 10 million of the 2nd tranche of CR close to 39-42 million.

If that is so then the stock price should easily punch through 40c........and trade within 40-45c until new information develops.

So far being long DRM has been very satisfying. The quickest gain I have ever experienced.
Maybe got lucky.

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A very pleasing report.

This report will now place a solid floor between 36-38c.
I don't think DRM will be visiting 30-32c now.

Looks like my cash estimate was slightly off by mere 1.3 million.
I had guessed 39-42 million but it came out 30.7 +7 million (westpac debt repayment).
I might have overlooked some hedge delivery at AUD 1600 on my back of the envelope calculation.

One more thing I should suggest management is to also include the copper productions equivalent in the projected guidance. It appears they are producing roughly 3000-3300 tons of copper which is equivalent to over 15000 ounces of gold. When the copper credits are included DRM is a 90-100K ounce producer.
Have I got this right. If anyone has otherwise suggestion please help me out.

Overnight gold stocks had a punishing day in the land of IOweUSA , which might put a dampener here.
Or else I would have thought 40c would have been conquered easily based on this quarterly report and future guidance.

Overall my decision to stay long is still valid and rewarding so far.