SEEMS TIME TO GIVE UP, page-669

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ANTON707

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30/06/21

15:34

Post #: 54180378
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Originally posted by Greenflint: ↑

Just in case you need to know where I stand, I have 3 years to wait out for a big gold bull run and therefore I am not moving anywhere just yet. I still have a strong belief in DCN turnaround story under LJ and I am still fully invested in DCN.

I don't belief that you are sincere in your question but I shall answer your question and entertain you anyway. Last qtr GP was down to as low as the $2,200 mark and on 31st Mar it was @ $2,270. Today being the last day of the June qtr, GP is @ $2,340 which is still better than under $2,270: not a heap better but it is still better. Just in case you may have forgotten, I projected GP to hit bottom in Mar/Apr (in US$) and that projection is still holding up.

At $2,340 and provided DCN can meet the production guidance of around 28,600oz for the June qtr, it is very likely that DCN will generate a positive cashflow of $11M. Will this be enough to push DCN much higher, I doubt that it will given the hangover of investors sentiment over the Mar qtr and the CR. At best, it will move to the low 30c. However if DCN can produce the qtrly figure of 27,500oz for the September qtr and generates a positive cashflow of around $12M mark, I will be expecting to see DCN SP moving into the higher 40c as it would signal a re-rate of DCN SP. And I do expect GP to move higher by then.

The above is my opinion and please don't use my opinion for your investment decision and then hold me responsible for your decision.

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I reckon they will need to come with some guidance revised as the 27,500 per quarter is the son of the 3 years open pit plan which is now out of the window, there must be a stop gap plan to restart UG and NTM truck load, which is subject to GP to stay high. with cost of resources and oil (they operate on diesel engines) very high I would be not surprised if they go in Care&Maintenance mode? PLS did it really well with C&M approach, just imho

DCN Price at posting: 25.5¢ Sentiment: None Disclosure: Not Held
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SEEMS TIME TO GIVE UP, page-669

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