Take everything that everyone says with a grain of salt.
If you want tips for understanding resources, you'll have to stick around and watch the markets for a few months to really get a grasp of what happens and why.
I'll tell you that you overpaid for DMI, you probably got suckered in by hype posts that a couple of posters here make.
They will tell you otherwise, and so will everyone else who has bought into this company. People have an agenda, and you will see they will say I have an agenda too (scaring people to sell in order to buy in cheaper
).
This is why you need to take
everything that anyone ever says on hotcopper with a grain of salt.
Listen to everyone, but don't immediately buy into their story. Take it as information and sit on it.
Understand the processes that go into mining:
1) Do some basic research on the management team
2) Research the financials (which come up every 3 months in the "quarterly" document) to understand how much money flows out, and how much money is remaining. Is there a potential cap raise coming? (i,e usually not a good thing for holders. Necessary evil though)
3) Is there any nearby big companies around? (Known as nearology, can heavily influence price)
4) Understand where in the junior exploration stage the company is in
- Has a tenement been acquired?
- Has a geographical survey been done/required?
- Has drilling been done?
- What do the intercepts look like? (how deep, how long are the strikes, what are the grades, etc.)
- Is there a JORC? When is JORC due?
- Is there a Pre feasibility study?
- Is there an off-take agreement?
- Is there mining equipment in place?
5) Understand what good numbers look like in regards to drill intercepts/assays/jorc
I can tell you now that based on the fact that no drilling results exist as of yet, this company is running off 'nearology' play with GXY and Lithium X (both very big companies) nearby.
You bought a stock at $40M market cap with nothing but a geological survey and nearology.
This is why I believe you overpaid for DMI
for the current stage it is in.
Most companies that are in DMI's position are $3M-$12M market cap range. The advantage DMI has is that it's right next to two big lithium based companies, which gives the perception that DMI has the potential to be worth hundreds of millions of dollars too.
If you're looking to invest into DMI for 2-4 years in hopes of hitting the jackpot, then you probably don't care too much about the price you paid right now. At 500M market cap you're looking at making 12x instead of something like 17x.
Best of luck on your investment.
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