I bought @2.05, and I bought yesterday @0.56, despite the...

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07/06/19

10:10

Post #: 38954686
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Originally posted by Davisite: ↑

This is sad from my selfish perspective as I have always found esh's posts worth reading even if I disagreed with him at times. I think the problem with gold developers we are seeing is arising from two macro forces at work: 1. Labour shortages which is hammering marginal companies; 2. The rise in (social) communication that makes it very hard to hide problems in the short term while they are sorted and a management culture that hasn't yet caught up to the new reality.

The first problem will resolve on its own eventually as the short term demand spike caused by the iron ore players works its way through the system and automation starts to play a larger role (I think RSG leadership in this area will pay massive dividends, but not for a little while - it is always tough being first).

The second problem requires a complete change in the way mining companies are run. We now have the ability for companies to provide the market with real time updates on every facet of production. Some in the market effectively have this via their internal contacts, but most of us don't and so we are open to insider trading and destruction of trust.

Mining companies need to move into the 21st C. and become completely open. We should not be waiting 3 months for a production update, but be getting real time streaming of all activities. Technology makes it now possible for shareholders to know as much as management as to what is going on at all times. It also allows for the crowd sourcing of problem solving. Being completely open will do more to rebuild trust than anything else I can think of.

It will be interesting to see which is the first company to embrace this new open approach - it is radical, but once done we will find it hard to believe we used to wait 3 months to learn of successes or problems.

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I bought @2.05, and I bought yesterday @0.56, despite the trivial dept, this company has potential,36000 a quarter at AISC1500/oz , makes around 2.4 a share.

DCN Price at posting: 44.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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