Chart - TA, page-2447

In order for DEG to start mining at least employing the large plant they propose(about a billion dollars)they have to produce a feasibility study ,obtain financing and permitting ,order the plant ,get delivery and then get it working .I track another Aussie silver miner who has been waiting for a year just for permitting ,it is no easy task in the era of environmental responsibility for miners .Ordering and receiving all the components in this era of high inflation and deliverability issues is no easy matter .It will likely take a minimum of 5 years to reach profitable production. .They have employed “a bridge to far strategy” instead of starting off small ,limiting expenditures to exploring and proving up reserves where they will initially mine .Thier exploration /drilling expenses are larger than many big profitable mining companies and are amongst the largest of any mining company in the world.
In my opinion ,expressed often is that they will fail and be forced to bring in a financially deep pockets savior at share prices probably about half what it is now ,That’s just my personal opinion as a private investor .
As far as the eye can see DEG shareholders are looking at endless dilution through share offerings to raise money for all the drilling etc ,there cash burn rate is extremely high, it will progressively become more difficult to accomplish this.If they choose to raise part of the billion dollars required to build the plant by borrowing the money,this will get progressively more difficult in this climate of rising inflation ,rising interest rates .This is without question a high risk venture.Anyone who can’t see this has their head buried in the sand .