Another bad investment IMODYL is now JV'ing into (51%) of a NW...

Another bad investment IMO


DYL is now JV'ing into (51%) of a NW Queensland tenement for the cost of $9,450,000 (on current share price only) 21,000,000 shares at lets say 45c.

If DYL's sp goes up in the mean time which shareholders keep raving here that they are (could be $2.00 in 1, 2 3 years time, you would hope so at least otherwise why would u bother, then they have paid $42,000,000 for this bit of land at that sp which is conservative going by the rampers in here.

Remember this wont be mined (if ever) before 2011,2012,2013 if your lucky.

What should DYL share price be worth in 4,5,6 years time then, lets say its $2 (DYL holders prob think $10.00) in 4 years time. This means they have now paid 40 odd million for this tenement, for a meesly 51% share.

Lets say the tenement is half ok and AFTER THE SETUP AND PRODUCTION COSTS , the tenement is worth NETT for argument sake $200,000,000 over 8 years (life of the mine)

So DYL gets 51% being lets say 12,750,000 per year.
Who knows what the production and setup cost would be but would be massive as always.

Even if (DYL) share price in 2010.2011.2012 is just $2, it will take them 4 full years of production just to make their investment back, seems like a bad deal to me, very risky imo.

Also DYL has to spend another 2.600,000 before Feb 2009 as part of the JV agreement, more money honey.

I understand that my figures could be out of wack as im trying to look into a crystal ball to a big degree, but this may explain to DYL holders the reason for the drop in Sp rather than the hope of a lift.

Happy to hear anyone elses views, but to me this is a sucker in deal , you spend the 2,600,000 DYL if anything is in the ground, we want 49% for nothing but providing a few samples and a bit of rock samples, oh dear me.

DYL should stick to one or 2 tenements instead of wasting shareholder funds buying wasteful land with high risk and perhaps no viability for production , but I guess thats the risk u take, and hey why not give away a few million shares, DYL have plenty of them , enough for everyone in Australia a few times over.

Warnie