Ann: Doray to Present at the Diggers & Dealers Mining Forum 2016-DRM.AX, page-55

Yeah BM, i couldn't understand that for RMS either, raise cash when you have more than enough cash on hand?....

They now have 525m shares on issue?

So for me RMS is not comparable to DRM when people make comparisons re cash on hand vs debt etc.... For example if DRM did a cap raise recently at $1.00 with no consideration to holders diluting the hell out of holders and minimising any future divis to 525m share then we would raise a further $125m + the $40m cash on hand giving us $165m, pay debt down of $80m leaving $85m in the kitty which would be $10m more than them? I mean thats how it really looks when comparing the equally!

So we could be advertising the same essentially but no DRM management took the debt on as i prefer as it shows confidence in the project and essentially when debt is paid down us shareholders shares are worth more value as 2 companies are slightly comparable for FY17 guidance except 1 has just over half the amount of shares issued...

Debt in most cases is fine if its managed well especially when its used for funding additional project, with $600-700m profits it can be paid of quickly, sure cash is better in SAR case, but certainly not a fan of raising cash and diluting holders when there is cash on hand that could be used to drill out resource...


However in the case with DRM and their next project in say 12-18months time, If they get guidance for FY17 and our MC is $600m+ at this stage moving into FY18, i would be happy for them to dilute say 50m shares at $2.00 giving them $100m for funding for their 3rd project?

DRM 350 shares issued, producing 250k/oz + p.a, AISC $1000, cash on hand and no debt, if market values fairly should be $1bn company?