I still think the C1 cash costs are key driver for a change in...

I still think the C1 cash costs are key driver for a change in sentiment for DML. The reality is the mine is not profitable yet (as was expected or hoped) and its confounding their capacity to fund the Development Plan.

From the BFS Development Plan (31082010) it stated the costs for the development plan are 40m and to be paid from 2012/2013 profits. Items in the 40m dollar Development Plan are the underground mine, the coal fired power station and extention the mine life from 5 to 15 years.

With the ramp up being a bit slower than expected its placing pressure on funds and that raises the question of a CR or at least some other form of funding.

Of course there is more complexity than this issue (or thought) alone. There's the question of what management will do about the other development plan to increase production to 50mt pa. Do they pull the trigger and seek funding for that now or do they wait until they can pay for it using profits further down the line?

There might be a case for biting the bullet and doing a CR now to fund both. Perhaps thats what the market is reacting to? I certainly dont know and can only guess.

I have held DML previously and once all this is cleared up i will probably own again. Just waiting to see managements next move...

http://www.asx.com.au/asxpdf/20100831/pdf/31s75mmtgk2rty.pdf

Page 3, note #1.