@ashburner I saw your earlier comments on MYG. It is very sad...

@ashburner I saw your earlier comments on MYG. It is very sad when you have invested in a company for so long and then see it disappear. The only positive is that it did not go into admin like some other companies and thus the investment is not gone and still has plenty of life in it, although not fully visible right now.

Here is a little analysis of DRM for MYG investors who might be new to it.

Low cost - One of lowest in industry

Good and respected management - One of most respected in industry with consistent record over past several years

Low and manageable debt- Managed very well and repaid a lot of debt in just 1 year.

Mine life - Was one of the weaker areas formerly and DRM has resolved this issue with the Mutiny merger. Potential upside is much more with significant upside potential - Judie, Suzy, Horse Well, Gnaweeda, Iluka tenements (this one could be an absolute game changer if some positive news comes out it), etc. On a lighter note, I often daydream that DRM finds gold all across the Iluka tenements and becomes a giant like NCM ....lol. But in all seriousness, former weakness could become one of the biggest strengths in coming years. Potential upside is so huge if some of this clicks

Country risk - Very Low - Aussie mines

Diversified mines – Yes with the Mutiny merger

Profitability and cash flow - Made good cash profits; Good cash flow position; good cash flow generation during the year

Hedging - intelligent hedging at prices way above current price

Market Cap/Net assets - Good

Market Cap/ EBITDA - Good

Potential foreign investors – To the best of my knowledge, large foreign hedge funds have still not set proper sight on companies like DRM. This could be because of its smaller mine life. With a better mine life / diversified mines, the scope for the new company to get new cornerstone investors is more

Rerating into new peer group – DRM has shown in its presentations how the new company should ideally be re-rated into a new peer group with those companies having higher production. There is no reason for that not to happen, and maybe it just a matter of time.

Broker valuations - Several broker reports have given it a higher valuation. DRM investors need to be patient.

Merger - DRM has more than ticked all the important boxes. IMHO, new (and old) DRM investors must be patient long term investors as sooner or later, the price should revert to its true fair value. It has already recovered very well in the last month. I've been trying to find any potentially weak areas in DRM and the only one that bothered me, earlier, was the mine life. I think the Mutiny merger more than addresses this concern and is a win-win for DRM and MYG, where the sum will eventually prove much larger than the individual parts. I am a longer term gold bull. I think it is crucial for companies to at least focus on surviving over the next few years, and ensure that even IF price of gold falls in short term, they are not too adversely affected. In years to come, returns for companies with long mine life, that survive, could be staggering, and I for one am happy to see the new DRM (after merger) increase mine life in any way. The key in this gold bear market is for companies to survive the cycle until the inevitable upturn and the merger helps both MYG and DRM to achieve that.

Underlying commodity – Many of us who are into gold stocks are contrarians and are aware that we were/are in a severe bear market. While there is no guarantee that this cannot continue a little longer, there are signs that we could be coming to an end. Due to low cost, low debt, good cash flow and intelligent hedging, DRM can survive in otherwise harsh conditions within this severe bear market. When gold itself eventually goes up to its true fair value, the future for DRM shareholders could be very bright.

IMO, MYG investors moving on to the DRM ship must give DRM a chance. DRM could have had a much better deal if they had gone ahead with a merger at the beginning of 2014 when the share price was much more. But at the end of the day, like I said earlier, I think the sum of DRM+MYG would be much more than the individual parts, in the longer run, and maybe, this deal is a win-win.

I know all of the above is little consolation when someone has invested in a company to see it disappear. Just thought I’d offer my 2c worth of analysis and hopefully some cheer and positivity on the new company MYG shareholders are getting into. Of course, at the end of the day, each investor is the best judge of what is suitable for them, and please research DRM thoroughly on your own.

All IMHO only and most definitely once again, please DYOR. Good luck to all!