From the quarterly report the declining production and headgrade was restricted access due to poor ventilation which was upgraded and commissioned in March. March production was 9Koz, total quarter 21Koz so next quarter maybe 30K oz which would bring them back to 120Koz per year... There are further high grade intercepts noted in M2, but not sure if these are new or quoting old data as there were no ASX announcements. Under exploration there were other higher grade drill reports also, so certainly a potential for resource upgrades and future higher head grade production.
If you look over previous quarterlies, there have been a lot of problems impacting production, and constantly fail to make their targets of when production will resume. Maybe they have just been unlucky, or glass half full! However it is nice to see that even though the ventilation upgrade was completed a month late, they have a month at their stated production goal. I also note they upgraded their processing plant to cope with 120Koz recently so ...
I am not sure how their profit will be affected with the new resource tax, they certainly didn't make much profit recently, maybe they will benefit from the gov. refunding state resources taxes while they are developing new parts of the mine and not making big profits.
DOM Price at posting:
$2.81 Sentiment: LT Buy Disclosure: Not Held
