DCN chart, page-475

Hopefully most of you have not been too disheartened to sell down your DCN because the price has not moved towards $2 yet. To place things into a bigger context, the gold price has somewhat stagnated after the peak in early September and the gold mining companies have been doing the same. If you have a look at the gold price trends by calendar year, the price tend to peak around late August early September before making its retreat through to early December. Gold miners also head in the same direction and may even multiply the losses compared to gold. This year is no exception.

The September quarter saw outperformance in the production although the first half guidance has not been upgraded. This quarter may be subdued but notice the Phoenix Ridge intercepts looked very encouraging. Furthermore, the cash reserves have been depleting slower while the debt balance is heading down faster. I suspect that this may continue as the worst could be behind us. The mined and milling grades have also improved in the September quarter.

Comparatively, DCN has retreated less than its peers since early September. I see that as an encouraging sign. I'm still holding.