Trading Halt this morning?, page-21

It was a poor quarterly report but somewhat better than we had feared, assuming Deflector was actually not cashflow negative as they claimed. Andy Well costs were much to high to sustain the company given their spend on exploration, interest payments, admin and need to repay debt.

I wonder if HHL will buy some extra shares in this cap raise - if not then expect them to look to exit in order to preserve capital and regain losses elsewhere. Their investment here surprised me. DRM is a very spec play, along the lines of the other producers that basically have short mine lives. Its OK playing them for a trade, but longer term investing in them is just high risk gambling with fairly limited reward, especially since they are not cheap any longer.

There are better gold plays than DRM. They seemed to promise a lot of upside via the drill, but have not delivered much so far.

Good luck punters.

loki