Totally agree golden horse.
Found this little table on a broker report released today. Whilst it paints DRM as 'expensive' on an EV/Resource ounces, its a bit irrelevant when its not resources that are being mined, its reserves and so far DRM has 100% covered its depletion rates at Andy Well, I have high hopes they will fully duplicate this at Deflector (Although the mine has 6 years in it to start off with, so there is no rush).
View attachment 175056
View attachment 175057
I think I have already said this, but DRM will follow its 'big brother', SAR, which has recently commissioned its second mine which brings its P.A production to about 300k or about double DRM. SARs MC is a bit over $900m, but I think it will soon reach similar numbers to RRL, which has an MC of $1.5billion. All 3 companies in FY17 will have very similar ASICs. DRM, 145k, SAR, 300k, RRL 310k p.a ounces....
All companies have multiple mines. Differing mine lives, but... I feel that DRM is proving that even though shorter mine lives at the beginning, they simply keep finding more gold. So... I simply see DRM follow SAR and RRL market cap wise. Which should see DRM hit about $450 soon, then keep going up closer to $550-600m.
All IMHO.
Slightly off topic, but I have noticed many posters (popular ones) starting to mention that Australia's gold sector as being overvalued, I just don't really understand why they come to that conclusion when I look at the first table I have attached...
Lastly, on the topic of hedging, I would prefer DRM to look at buying collar options instead of simply hedging more gold, as that way you can still see some further benefit if the price rises further, but have the downside locked away. i.e... collars of $1600-1800, or $1550-$1750 (they may cost a little more, but that is the nature of 'insurance'. As for me, DRM conservative approach to longer term production and revenue suits me, as I already have other gold stocks that are totally unhedged, which adds upside growth, but no downside protection.
