NTA should never be the definitive measure of the value of a junior resource company.
Some posters have allowed to enter their DNA the notion that DGR should perpetually trade at a discount to NTA. They say in good times it should trade at 70-80% of NTA and in bad times at 30-50% of NTA. This supposition is false.
My Pilbara coys and lithium boom coys trade at many multiples of NTA.
Most have miniscule NTA. Tangible assets are readily tradable. eg cash, property and holdings in listed public coys. Capitalized exploration expenses are not NTA.
DGR has gargantuan blue sky in all its subs, especially SOLG.
Let us play the NTA game. At last night I have 31.3 cps including unlisted subs and excluding tax. If we take the value of SOLG as 0.60 which is the exercise price of recent options to parties including NM then NTA for DGR rises to 45.6. Last nights ann from SOLG suggests the latest discovery could be 3 times Cascabel and much easier to mine. The value is now is not 0.60 but pounds. There will be posters who will grizzle when NM exercises at 60p when SOLG shares are worth several pounds.
I see DGRs value currently as well above one dollar. If I use the punters Pilbara goldies scale it would be over 5.00.
What will our price do today? It will probably get to 0.11. and stop. Why is this? The posters and the hundreds who never post but observe are stuck in state of cognitive dissonance fed by the regular negative posts and positive posters who are NTA Cargo Culters. They also believe the coy will endlessly produce discounted options when in fact all options are issued at a premium. The last lot were at at 0.20. Finally there is a BOT operating evidenced by multiple orders ending in say 442. eg 10442, 101442 1442 etc. The price is being controlled.
One day the punters will discover DGR. One day we will go onto an index. One day more institutions will move onto the register. This is already happening with Tribeca.
A market can remain irrational for a long time but not forever.
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