Ann: Investor Presentation - DFS Outcomes & Equity Raising, page-54

It’s quite extraordinary the level of “spin control “ being put out on the board.
This has been a bad few weeks for Deg shareholders apart from those who sold into the market at a higher price and got the new shares cheaper at 1.05.
The price has fallen 30%,quite obvious that the shares couldn’t be sold at a higher level and I believe this price is lower than the previous offerings in recent times.
The Price of gold is falling in US dollar terms which is what matters and continues to fall,it is in a bad bear market ,the Australian dollar is close to its low against the US dollar.
As I have said before this is related to the US fed raising interest rates very aggressively and borrowing money in the US is at an interest rate of 8% or more.
It is likely that there is going to be a worldwide recession ,China is a total mess and the Us is not in much better shape ,Europe even worse.
The amount of the financing taken up by the directors of Deg is a pathetic 0.35 %or less of total outstanding shares .
GOR had little choice but to throw another 50-60 million of their valuable cash reserves to support the offering .DEG has not been a good investment for them .
The project is not derisked .Something like 1 billion AU has to be borrowed to build the plant.
There is absolutely nothing that is going to push the price of Deg higher other than a takeover.Clearly no large gold companies are interested because no one other than GOR participated in the offering.Profits of the top 10 worldwide gold mining companies are going to drop significantly because of the fall in the POG.They will just grow organically .Very interesting comments by the CEO of Agnico this week which should be read .
Profitable production is 4-5 years away as it takes 1-2 years after first gold pour to establish profitable production .Then the debt has to be paid off which will take longer than predicted.
Eventually this deposit will be produced ,whether it will be by DEG or not remains to be determined.
The only investors currently making money on DEG were those who had knowledge of the placement ,sold their shares into the market and bought back at a price 30% lower.
Average retail investors have lost money investing in DEG in the last 2-3 years .
There are inevitably going to be problems getting this project up and running ,either delays in permitting ,problems obtaining equipment ,problems in getting financing etc .Sometime over the next few years the share price will go lower than it is now .
It is such a shame ,DEG has found a great deposit ,they could have easily raised enough cash to build a smaller plant which was upscalable as cash flow developed ,that would have been a much safer way to go .I know very few companies which have actually pulled this off ,many have failed .Artemis is the only one currently that will succeed by the looks of it .Their value is about 1/2 of degs ,first gold pour in 6-9months ,all financing in place .Much better spec though i don't own it.