DCN 0.00% 28.5¢ dacian gold limited

Article from afr 19/2/20.Not sure how accurate its crystal ball...

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    Article from afr 19/2/20.

    Not sure how accurate its crystal ball is...

    Panning for gold: Dacian on raising watchlistsSarah Thompson, Anthony Macdonald and Tim BoydFeb 19, 2020 — 9.31pm

    Fund managers, resources executives and analysts will descend on Florida next week for BMO Capital Markets' 29th global metals and mining conference.No doubt a talking point will centre on gold prices at seven-year highs, after investors flooded into the safe haven metal on the back of global uncertainty and geopolitical risk.

    Trading in Dacian Gold has been suspended since the start of February but it's about to rejoin the local bourse. Arsineh HouspianAnd an offshoot chat for the Aussie contingent gathered at the conference will be what's going on at ASX-listed gold miner Dacian Gold.The $320 million miner has had trading suspended since February 3 and is expected to rejoin the local bourse during the week beginning February 24.When it does, fundies and equity capital markets bankers reckon Dacian may seek to raise at least $50 million in fresh equity and perhaps as much as $70 million to fund its debt obligations.

    Dacian spokesman didn't provide comment in time for publication.

    Dacian entered suspension earlier this month in advance of it releasing an update to its life-of-mine plan for its Westralia underground mine, in the middle of WA. That mine plan is expected to disclose reduced mineral resources and ore reserves at Westralia, which points to a lower production outlook.And given Dacian's debt levels – at the end of December it had fully drawn its $94.7 million loan facility courtesy of Westpac, ANZ and BNP Paribas – lower production could spell pressure on company coffers.

    One thing buoying investors is the arrival of new chief executive Leigh Junk in January.Junk is known in the market as a fixer-upperer. His last role was at gold and copper producer Doray Minerals, which was eventually taken out by the $1.5 billion Silver Lake Resources under his leadership.As to which bank gets on the ticket, Canaccord Genuity has worked for Dacian in the past and would be well placed if a raising did transpire.
 
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