DCN (ASX) Ann: Half Year Accounts

Originally posted by eshmun: ↑

The company stated on page 9 of its 25 Feb 2019 presenation that

"Westralia now performing in line with Feasibilty Study levels"

If Westralia is performing to FS levels there is a very very good chance they are making money judging by the FS AISCs for those deposits.

UG
Beresford AISC = A$845/oz
Allanson AISC = A$819/oz
Combined = A$837/oz

The above quote from the presentation is not a forward looking statement covered by disclaimers, it is a statement of fact (or it is a complete misrepresentation, ie lie). Now do you really think they would lie to the market about this?

So logic dictates that if they are not just complete liars then the only way they could be losing money is if the Jupiter open pit mining area is under performing badly on its FS assumptions, ie if Jupiter is costing money and a lot of money for that matter.

From the same Februaury presentation, page 10, the company said this about Jupiter

"Ore loss and dilution levels are less than corresponding Feasibility Study assumptions"

The only hiccup so far at Jupiter has been the grade which the company has said will improve as the pit transitions between host rocks.

Some investors have been conditioned by the failures of BLK, GCY and the like to be overly fearful of mine startups. It is plainly apparent to me that this is not BLK or GCY, in fact people who follow my posting will notice that I never invested in BLK (except a very quick ride up I had on one of their pumps) and I warned investors about the risks of GCY (around that mine's critical reliance for success on early large material movements and also I warned about the high strip ratios in the first 2 years. It wasn't going to take much to derail GCY and the grade undercall did the trick).

I will eat my hat if DCN aren't making money. My guess is that Westralia is now performing strongly and once the grade at Jupiter increases it will be all systems go. There is still a little tranistioning to do IMO but the finish line is in sight and DCN are leading the race when it comes to ASX gold developers. IPO to declaring commercial production in a little over 6 years.

As another poster said the last CR price of $2.70 is probably providing a little overhang and some mild resistance. The share price rose briefly after the last CR, if I recall correctly, but did not hold long enough to let the lazy money out. I'd say the lazy money is almost done with and when the more stick money takes its place and the company hits its straps we will really start seeing the benefits of the small free float and lower liquidity. Esh

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some good commentary on this stock eshmun ur making me feel as if I can smell a new 52 week high soon

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