Still scratching my head on the price of DRA (no thanks to the capper), I decided to take it further and do some research on where DRA stands in the sector.
I chose 3 similar companies to compare DRA to. AVO, DOM and TAM
First for DRA
Resource - 1.1moz (1.3 if you include 20% Zara project)
Cost - $630poz (USD$580poz)
Production - 80kozpa
Market Cap - $60m (roughly at 8.2c)
EV on resource = 60/1.3 = $46poz
Now the next two have a similar resource but differ in cost and production rate
AVO
Resource - 1.4moz
Cost - $645poz
Production - 189kozpa
Market Cap - $438m
EV on resource = 438/1.4 = $312poz
DOM
Resource - 1.2moz
Cost - $460poz
Production - 102kozpa
Market Cap - $395m
EV on resource = 395/1.2 = $329poz
Now for the one that will blow you away and Pokerface touched on it in an earlier post.
TAM
Resource - 470,000oz
Cost - $750poz
Production - 50kozpa
Market Cap - $244m
EV on resource = 244/.473 = $515poz
I won't start with TAM, lets look at AVO and DOM. Have a good read of the above and please check my figures. AVO, DOM and DRA have similar resources. AVO and DRA have similar costs. AVO has a much higher production rate but does this warrant a market cap of 7.3 TIMES MORE THAN DRA?
DOM as mentioned has similar resource, similar production rate but producers at a cheaper rate, but does this warrant a market cap of 6.5 TIMES MORE THAN DRA?
Here's the beauty, DRA has 2.75 times larger resource than TAM, produces at a much lower cost and produces much more ozpa, yet TAM is valued at $244m and DRA at $60m. Honestly are my eyes deceiving me or what. This is clear mispricing at it's best. There is absolutely no reason why TAM should have a market cap greater than DRA.
DRA is definately flying under the radar thanks to our capper. Based on TAM's market cap alone DRA would be 33c today.
I am as frustrated as the lot of you, so lets help get DRA the attention it deserves.
PLEASE GIVE THIS POST THE THUMBS UP IF YOU AGREE, or for any other post you feel will get the message across. If it can make the top 5 on thumbs up it will alert alot more people.
We are very very undervalued as you can see. Lets unite to fight the capper and finally smash through 9c and beyond where DRA deserves to be.
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