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28.5¢ dacian gold limited

You pay out AVZ, then you pick something like this lol. Karma...

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Mundo122

10,090 Posts.

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05/06/19

12:13

Post #: 38918089
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Originally posted by eshmun ↑

I think it is still a bit early to make the GCY comparison.

Despite the ramp up problems in the March quarter the company still managed a $10 million repayment to its bankers and its liquidity was still a healthy $70.2 million.

The June quarter guidance seemed very rosy at the time of the last update and didn't seem to have the effect of steadying the ship so one would need to question the rational for putting such an ambitious guidance out there considering there were still considerable unknowns associated with a yet major pending ramp up at Allison and achieving the reserve grade at Jupiter, not to mention how permanent their claimed fix of the equipment shortfalls at Beresford/Westralia actually were/are.

I suppose it all depends on where the short fall originates from and what AISC they are projecting for the year.

There is a difference between not being able to extract the gold due to equipment availability (as was their excuse in the last quarter) and having a major under-call on grade as per the GCY situation. If they can't reach their forecast grade at Jupiter of 1.2g/t that is going to be a problem for them IMO.

If they can produce an ASIC which doesn't put significant pressure on their liquidity situation then there is still scope to turn this ship around depending on what the latest excuse/s actually are.

Having the gold price at $1,886/oz would have to help cushion some the problems going forward as long as they are not fatal flaws.

I was always suspicious of Dacian's big exploration push around non-core areas while building and ramping up the mine. It seemed like the actions of a supremely confident team but in retrospect the money would have been better spent on a more conservative approach, ie bedding down the main game.

We shall soon see how tragic this company has become. Esh

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You pay out AVZ, then you pick something like this lol. Karma follows you my friend. Apologies to all other holders.

DCN Price at posting: 65.5¢ Sentiment: Sell Disclosure: Not Held
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