Back to non-miserable, non one-liner, factual info/food for thought:
DRE market cap currently is $55M.
Cash is $11.8M.
EV is $43.2M
At the current gold price of $5,000, free cashflow, from the initial 20,000 ounces at the Star, is $57.2M.
They are aiming to define 100,000 ounces by end of December this year, 250,000 ounces by the end of December next year, and 400,000 ounces by the year after that.
How much of that 400,000 ounces they define, and how much they add to the upcoming mining/extension of the mining at the Star, we shall see.
But it's not hard to do the calc's on how much money they'll make beyond the initial 20,000 ounces.
Dean has said many times that they'll use the profits from the gold mining for exploration and to get that life-changing discovery (sounds good, thanks!), and also to pay back shareholders (dividends, capital return, etc).
DRE EV currently at $43M, free cashflow from mining the initial 20,000 ounces is $57M, 400,000 ounces to be defined.
Assuming that the gold mining all goes to plan, and they mine nicely beyond that initial 20,000 ounces, and DRE pay back to shareholders (a divi) of $55M, that means that whatever the current value of your DRE shares is, you'll get paid that much in dividends.
If your holding is worth $10,000 you'll get $10,000 in dividends, if your holding is worth $100,000, you'll get $100,000 in dividends, etc (sounds good, thanks!).
And yeah, not hard to do the numbers on how much they'll make from mining how many ounces, and how much they might distribute back.
Plus there's the potential/free REE kicker that'll likely bring in a nice lump sum if the Chinese hit back with a ban on the REEs and the REEs get revalued (sounds good, thanks!).
Cheers,
GB.
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