As an Ex shareholder of DCN I was horrified by the events of yesterday. I lost faith after the selldown before the 1st downgrade. I bought more on market during the sell down thinking it was just a change in sentiment... but it looks like it was insider selling. Both GCY and DCN were meant to be profitable with an AUD1600 AUD gold price and AiSC's of around AUD 1000. These were meant to be lowest cost quartile producers at a much lower gold price but at 1800 GCY in VA and DCN with a 60% share price drop in 1 day! I pity the next developer or advanced explorer trying to raise cash. I regard WA companies the same way I would view a miner in Indonesia, Phillipines, Thailand, Tanzania etc, not the political risk in the case of WA but operational risk due to suspect JORC reserves and short mine lives. I reckon I won't be the only one.
DCN Price at posting:
50.0¢ Sentiment: None Disclosure: Not Held
