This must be an unloved stock, it's still trailing the share price of Cambrian mining who have initiated takeover proceedings.
Cambrian are trading at 63 pence, at a 1 for 24 (1 share of cambrian for 24 DGN shares) and an exchange rate of 41 pence for an Aussi dollar, the equivalent takeover price is 6.4 cents, yet DGM still trades in the region of 5 cents.
Interestingly, a UK broker has upgraded forecast share prices for Cambrian. Forecast price for June 2004 remains the same at 83 pence, forecast for June 2005 upgraded from 163pence to 192pence and for June 2006 upgraded frm 240 pence to 290pence. If forecasts come true, that would make DGM 30 cents in little over two years time. (Exchange rates assumed constant).
Much of the valuation comes from DGM's and Cambrians holdings in Western Canadian Coal Corporation, whose share price is having a very good run on the Toronto stock exchange, uto 117canadian cents from a low of 25 cents. Yet our DGM has only risen from 2.5 cents to 5 cents.
Must be unloved, but surely way undervalued.
Some links for information are listed below.
I hold DGM, and waiting for takeover, will continue to hold.
