Hi
Due to the POG declining, post Covid recovery commencing, with interest rates likely to increases over the next few years, and a possible further decline in the POG, I have been re-visiting my DEG profit estimate spreadsheet. Encouraged by the recent good DEG reports I am wondering if at least 700,000 oz production per year has a high degree of probability? Similar to the Super Pit production plans?
Using 500,000 oz per year at $1 Aust. = $US 0.74 and an AISC of $1,100 Aust. my estimates of EPS (Aust. cents) after tax, are 32; 25; 18; and 10 at a POG of $US 1,700; 1,500 ; 1,300 and 1,100 respectively.
Increasing production to 700,000 oz per year the EPS (Aust. cents, after tax) increases to 45;35;25; and 15 respectively.
If the above estimates are within +/- 15% it seems that DEG is currently undervalued.
The forthcoming mine development announcements will clarify the situation.
Regards
Old Fisherman
HiDue to the POG declining, post Covid recovery commencing, with...
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