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28.5¢ dacian gold limited

Macquarie at 70c - OUTPERFORM, page-2

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IsdHope

483 Posts.

59

07/06/19

10:38

Post #: 38955677
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Originally posted by AC88: ↑

Mac have a 12mth price target at 70c, but outperform rating.
Their actual DCF value is $1.32 - but need more management credibility before moving there. Hence the discount to 70c.
This is a snippet of what they say:

Based on these revised forecasts and our A$ gold price forecast which averages A$1,891/oz over the next five years, we still see value in DCN, at least on paper. The mine should generate average annual Ebitda of ~$70m and annual cash flows of ~$50m. Based on this outlook, we do not currently see the need for new capital. We note that DCN’s debt is a Project facility and as such covenants are at the project level and include debt service, loan life and project cover ratios. We also note that these have not been disclosed by DCN

No question this stock is very cheap.

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Hi AC8

Great to hear of this outperform from Mac after all the bad news on this site.
Is it possible for you to post the valuation from MAC on this website?

Thanks,
Isdhope

DCN Price at posting: 42.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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