Bigdream's 2 cent

Hi all,

I was jubilant when i saw the headline that C1 has fallen to $1.89 per pound. At this stage  it is pretty obvious that DML is now at break even ( see my calculations below). I included a price of 3.07 which is about the low point over the last quarter where price of copper fluctuates between more than $3.23 and a low of $3.02.

	Column 1	Column 2	Column 3	Column 4
0		Pound of copper produced	CU Price per Pound	Revenue
1	1kg = 2.20462 lb	15,044,326.88	$3.07	$46,186,083.52
2
3
4
5			Costs per unit	Costs
6	C1 (pounds)	15,044,326.88	$1.89	$28,433,777.80
7	Materials mined (tonnes)	9,310,000.00	$1.64	$15,268,400.00
8	Ore milled (tonnes)	701,500.00	$3.38	$2,371,070.00
9				$46,073,247.80
10
11			Gross operating profit	$112,835.72

The exciting part of this latest development which i don;t think many people realized is as follows.

1. This C1 is based on last few quarters of stripping efforts (which was at a higher costs because improvements wee still underway). So as the amazing efforts of this quarter flows on to the next quarters result, we will see a very decent boost.

2. we are back to striping waste ore now because plutus and zeta are long and narrow. so the production cycle is oscillating between low grades to transition ore to high grades. last quarter there were no low grades ores, but now, we are back  stripping  105,459 tonnes worth of low grades in order to open up the next stage of plutus stage 2. So next quarter, we should probably expect more of this low grades and then the quarter after once the stripping is completed, we would have an absolute bumper when there is only abundant transitional and high grades ores, coupled with efficient stripping efforts (stripping costs are capitalised and included in C1 when thy reach transitional/high grades ore are mined) now with the electronic blast monitors (early stage, but showing results).

3. the price of copper and silver are at the feasibility stage, so we are now at the full exposure of them. every rise and fall in POC and POS will fully reflect in our results, as oppose to prior quarters where the results are still impaired by ongoing improvements work

4 given that this is an engineering work, we should really factor in engineering/plant/mine issues into the C1 because lets face it, with so many moving parts, something is bound to go amiss.

5. as mentioned many of a time, engineering problem requires engineering timeline to resolve. While 2 quarters ago we have turned a quarter, this quarter shows this results translating into financials. Even the hardened DML collapse squad will have to concede that DML has definitely turned a corner.

6 The mining consultant, HRL testing, has proven to be a good value for DML. its truly money well spent.

Its business as usual at DML regardless of what some people might say about it.