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28.5¢ dacian gold limited

"..a small loss for the 2019-20 year, rebounding to a $63m...

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Cyberguy

1,486 Posts.

37

25/07/19

15:04

Post #: 39691647
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Originally posted by StAnselm: ↑

From Tim Boreham at Switzer Daily. This appears to be a good summary of DCN:

Another mid level play with an interesting valuation is Dacian Gold (DCN, 64c), which lost three quarters of its value after slashing June quarter production guidance and increasing its per-ounce cost estimates.

The shares have strongly recovered since after the company released a revised mine plan for the next eight years.
Dacian’s mainstay Mt Morgan operation is slated to produce an average 170,000 ounces a year over the first five years of the plan, with 150,000-170,000 ounces forecast for the current year.

Broker Citi forecasts a small loss for the 2019-20 year, rebounding to a $63m profit for the current year. On these numbers the stock is trading on an earnings multiple of a little over two times.

To capitalise on the buoyant gold price, Dacian has hedged 147,000 ounces – 13 per cent of its expected life-of-mine output, at an average $1810 an ounce.

Dacian’s current valuation stands at $246m with its cash kitty of $45m comfortably servicing $105 million of debt.

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"..a small loss for the 2019-20 year, rebounding to a $63m profit for the current year..."

huh???

DCN Price at posting: $1.06 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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