DCN dacian gold limited

I do not see DCN as a takeover target unless another company has...

  1. 308 Posts.
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    I do not see DCN as a takeover target unless another company has 2g/t + assets near by. The best asset the company nearly owns (16mil to repay) is the processing plant as 3mil tonnes and a constant recovery rate of 92%.
    As for the gold in the ground, DCN has overestimated the amount for 3 years and constantly has to expend cash on exploration to chase the higher grade material.
    As for the NTM assets which does have easy access to shallow deposits, the issue is the distance to the mill. One analyst advised the cost of trucking from the HUB to the mill at $250 to $300 per ounce (conference call on the ntm assets) which would blow out costs to develop and mine.
    However the underground mines may surprise the market with higher grade IMO.
 
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