what is the true valuation of dml?, page-7

i see in the financial report that dml director have attached zero value to the actual resource. I'm guessing that the directors have included any notional resource valuation in its valuation of the plant & equipment.

in the annual report IMO this is a deliberate statement ...

2 schools of thought...

1. the plant is worthless without the resource; the resource is worthless without the plant; so any reasonable valuation can only be a combination view; or

2. that the plant is correctly valued at hardware cost and on the basis of some notional/conceptual break even tolling fee per concentrate tonne. the notional tolling fee includes cost recovery plus some equity return. The resource is correctly valued at zero because at todays prices and managements reasonable expectation of its mining costs and the forward Cu market less the notional tolling fee, there is jolly zot left.

my view ... no idea and management are not helpful in providing any clarification. i am concerned the geology is unfriendly and am probably then leaning to the 2nd option...

this is ugly ... otherwise it wouldn't be 5.8c!!