thats just above the bollinger technical positioning. bollinger positive is at 38c
those technical positions shift as the curve shifts based on buying support - nothing to do with newsflow
to put it in perspective DRM is trading 3.5x EV/gross mine margin vs sbm on 8x, sar on 10.2x.
its on 3.1x if you take mgts 100koz numbers at face value
Its a single mine operator going to 100koz so it wont get their premiums - but if market feels confidence in the turnaround and wnats to position for that outcome there's no reason if cant get to say 4 -5x with no further newsflow barring quarterlies
50c would put it on 4.5x at its current 75koz run rate though need to allow for cash position to change with exploration cost
i suspect its all about confidence in mgt being on the up and up
my own view - for whatever it is worth - is that if EMR is worth an implied $180M market cap still having to build its $90m mine to produce 106kozpa with all the teething risks associated and with the crapshoot cambodian sovereign risk factor - DRM at $151m EV appears significantly undervalued
DRM Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
