Hi Hippy,
Yes its partly hedged over couple of years and don't need to filled till 2018 mate so its flexible if ya like, there fore they can enjoy 50% at $1600 and the other 50% at say $1800 or what ever POG is at the time....So essentially at current POG its $15m and not $30m as you say!!
If having part of your production hedged at $1600 is the only fault i could pick then i'll take it, Aussie producers made a packet at $1500 recently?
The big draw cards are potential $1000 or lower AISC for FY17 given this is so low to any other producer it would offset the concerns re the part hedging in my view.
Also they are already talking 250k/oz p.a, so a 3rd project! With DRM first class management and reputation of being able to deliver successful project Andy Well over the last 4 years, and now hopefully Deflector coming online in a period of 14 months, the potential of the 3rd project within say another 12-18months is very compelling and was the icing on the cake!
Today for $370m MC you are buying a 140-150k/oz producer starting from July and within 12+ months could be making serious inroads to their 3rd project and targeting 250k/oz +
Should have a look at what 2-3 projects/300k/oz producers are worth today, if DRM can slip under their MC somewhere that provides incredible leverage from here over that 12-18 month period!
Should consider DRM to your holdings also mate small shares on issue, just the way i like them both DRM and BLK poised for good organic growth i feel.
I re balanced for FY17 i only held 1 gold stock needed to diversify a little, its no problem mate i still hold and bullish BLK
