Hey Loki,
I get where you are coming from, but then I guess I am trying to say that $80m debt over 4 years, is just $20m p.a, even if they only get their average AISC down to $1100 p.a, at an average rate of 180k with a POG at $1650, they will be clearing $99m a year, or $400m in the good years. Sure, you can strip out another $120m ($30 p.a) for exploration, but that still leaves a lot left over, potentially for shareholders.
After the reserve upgrade, a new mine plan would obviously help to quantify just how much of a difference the addition will make. Hopefully DCN does so. Then perhaps we can have a more indepth discussion.
As for POG, perhaps its just doing what the majority thought it would not do...
One thing I will say, is that DCN, due to its higher production profile, and lower AISC, will hopefully allow it to get into the big end of town valuation wise. Sure, RMS is a 200k p.a producer, but.... higher AISC and short mine life. I view DCN as SAR, 3 years ago. Boy do I hope it is able to mirror SARs run.
DCN Price at posting:
$2.17 Sentiment: Buy Disclosure: Held
