I been building a position at current levels & do have trust in the management tthis will be goer.... But recently I been doing some comparisons between DCN & SLR/DRM(once merged), seems SLR is severely undervalued compared to DCN..
SLR/DRM 230-250,000oz pa enterprise value of $280mil
DCN - 180-200,000oz pa enterprise value of $480mil
Yes DCN has bit more mine life, but saying that SLR/DRM are much higher grade with good potential for further discoveries... Merged entity will produce 40-50,000oz more than DCN offsetting the higher ASIC than DCN, plus debt free with 100mil+ war chest & $480mil of tax losses in hand.....
As I said hold both, but SLR seems significantly undervalued at current levels if compare with DCN..... With market turbulence seems not going away anytime soon, I feel we will see gold at $1300oz, companies like SLR & DCN wont be ignored...
Cheers
DCN Price at posting:
$2.01 Sentiment: Buy Disclosure: Held
