After the cap raising Dacian has the debt pretty much under...

After the cap raising Dacian has the debt pretty much under control, and with the $25m they have to pay soon it will be down to $39m - easily digestible by Ramelius.

Their hedging, I think of about 84k oz, is not flash and seriously knocks the cashflow figures around for FY21. After that though their hedge book looks reasonably clean. But anyway that would be factored into any cashflow valuation used in assessing a bid. It is not as if Ramelius could not cover the hedge book.

The way the Ramelius team has peeled back the layers at Mt Magnet to keep uncovering more and more mineable ounces gives me confidence that they stand a fair chance of doing similar with Mt Morgans underground deposits. As I said, if they can do that then it is money for jam (hat-tip Keith Miller).

If Dacian were producing the 250koz pa that it was spruiked to produce it would be up there vying with Ramelius in market cap tables and out of Ramelius's reach. But for say $250m, even with all its flaws, today's Dacian would give Ramelius from day one exactly what they want: the third processing centre and more than 350 oz au pa.

Anyway, as I have said previously, I am not familiar with what else is around in WA that Ramelius might be tempted by. I only studied up a bit on Dacian so I can only rabbit on about Dacian. In isolation I think it stacks up okay but there may be much better options for Ramelius.