DML 0.00% 1.9¢ discovery metals limited

DML Update from Bob, page-70

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    In addition to Okra's & Downanout's summaries, I heard the following messages out of the AGM:

    Key points for investing in DML, (or for waiting for your loans to be repaid):
    1. DML is not resource constrained: Their holdings in the Kalahari copper belt are extensive and could allow more than 20 years of continuous operations, unlike some other copper companies operating in Africa;
    2. Zeta resource remains open beyond 620 metres depth;
    3. The concentrate is world class: The concentrate produced from the high grade sulphide ore is returning a concentrate into the 40%'s which is attractive for smelters when compared to the global average of low 20%'s.
    4. The Zeta underground will deliver consistent grade sulphide ores and has been staged to reduce upfront development capital. The staging has the northern half of the resource being mined to depth first by SLC, with the southern half being developed and mined later. Bob's team includes an underground experienced mining engineer, Rob Cooper, who has reviewed the SLC concept plan as well as the Cave Management Plan.

    Electricity
    In response to a question about reducing the cost of electricity from Okra (I think it was): the Botswana Government is constructing a high voltage transmission line around Botswana which should reach Boseto by 2018.
    DML is also considering other means of supplementing the existing oil-fired power station(s), although I didn't get the impression from the discussion that this was a priority for the current management.

    Business Improvement
    The key focus of the site management team will remain cost reduction and consistent production. Lowering costs and improving efficiencies will allow more of the resources to be converted to Commercial reserves. While the 'low hanging fruit' have been taken for cost reductions, there are still opportunities to be had through the processing plant.

    Shareholder attendance
    In response to how many shareholders attended, my voting card number was in the high 30s, so I'd suggest around 40 were present.
 
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