WGX has a lot more potential via its mining operations near three processing plants to find higher grade ore and increase production/ lower its cost. In addition WGX is debt free and from what I understand is now profitable. Plus it has a real 10 year mine life from its existing reserves with the potential to extend this, while DCN's current gold reserves are dedicated to fund the repayment of its loan, meet its admin costs and pay for exploration and capex.
The higher gold price is saving DCN, as well as other marginal miners, and pushing up the share price of pretty much all the goldie producers, some well beyond reason. i suppose there is only a limited number of profitable goldies on the ASX so their share prices will get extended to the upside until the trends turns.
Good to see DCN's share price recovering - its future really depends on its drilling results, assuming that the forward production figures provided in the recent presentation are plausible.
loki
DCN Price at posting:
95.0¢ Sentiment: None Disclosure: Held
