"The big positive for me is that DRM’s SP didn’t go below .30c. Does this mean we are being re-rated by the market?"
I don't really understand your statement / question @Money made
30 cents is not a magical number or threshold. DRM's stock price has been rising overall because the turnaround has been well executed and DRM experienced a pull-back over the last few weeks.
However, if DRM can become large enough in terms of its production profile to exit the "junior minor" category and enter the "mid-tier" gold miner category (100k oz p.a.+) then we might see a "re-rate".
This might mean that the market will value DRM at a higher EV/Oz multiple. Junior miners are typically valued at 1000 - 1500 times Oz p.a. For example a gold miner with 50k p.a. production profile might be valued at a $75m market cap.
However, the market typically pays more for mid-tier miners with each Oz p.a. valued at up to 2000-2500 times. For example, a gold miner with a 100k p.a. production profile might be valued at $200m market cap.
Hopefully that will be DRM in 12-24 months time.
GLTAH. DYOR.
DRM Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
