what is dml s true value per share , page-8

Fitnfam

Could not have summarised it better myself.

One thing that you need to consider is that DML has been in default since December 2012 for not reaching its targets. However there has been continual discussion regarding a workout with the various change of control proposals that have been put forward.

So the fact that the financiers are still willing to allow DML to continue operations without calling in the Receivers and Managers is a positive.

I also expect that the financiers are waiting on the December results as well as the collection of receivables, which is why there is the short term period of the extension. I expect that DML has shown the lenders that they have the funds coming in and as such the banks are willing to allow the extension.

I also expect that the financiers would be being provided weekly (or at least monthly) mine operations updates and the fact that the Blumont deal blew up so long ago and the financiers allowed the extension IMO means that the mining results are positive enough to meet financial commitments, including security availability in the even of a wind up of operations.

The quarterly report will be very important because it will tell us if DML is making headway on costs, grade and recoveries. To be mining in the sulphides we need to see close to the recoveries that the feasibility was forecasting, otherwise the prospects for the company will be bleak.

But what is interesting is that for the company to have a resource of this quality, being the grade and it being Chalcocite in the sulphides, it makes you wonder why they can't make the mine profitable. IMO the poor September month result that saw a significant amount of Chrysocalla mined and processed would have been a result of someone taking their eye off the ball and that is why they are employing the Mining Manager. It was not like the reserve was not as expected, because all along they said that there was a significant amount of Chrysocalla present. They need to mine in the right spot.