DCN is a much higher leveraged stock against the like of RMS (as...

DCN is a much higher leveraged stock against the like of RMS (as an example) or for that matter against most other gold producers. If gold price increases by A$100, you can expect the percentage improvement of DCN SP to be twice of that of RMS SP. Conversely if GP drops by $100, then you can expect DCN SP will to drop twice in term of percentage to that of RMS SP.

This is all related to DCN breakeven point of GP of ~A$2,400 i.e. it will have positive cashflow if GP is above A$2,400. Therefore if GP gets closer to A$2,400 or lower, then you can expect more investors to get nervous and start selling. However if any investor is confident that GP is going to improve in the medium term to a much higher value than $2,400, then DCN SP at 20c is an excellent entry point.

In short, DCN SP is highly dependent on investors view on future GP movement.

Below is what I had posted before:

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Taking RMS VS DCN as an example (the figures below are approximates only):

1 RMS share is $1.50 and $1.50 is 6 DCN shares (25c/share).
Using PE 10, every A$100 increase in GP will generate 30c/share gain for RMS ( 250,000oz*A$100/800,000,000shares*10PE)
DCN will generate 10c/share.

Based on a $1.50 investment and on a rise of A$100/oz in GP, the return for RMS is 20% (30/150) and the return for DCN will be 40%(6*10/150). In a nutshell, the potential return with a given investment value on DCN is twice that of RMS. But obviously the risk associated with RMS is much lower.
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GLTAH.