DRM 1.80% 54.5¢ doray minerals limited

Ann: Trading Halt, page-125

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 11,185 Posts.
    lightbulb Created with Sketch. 2609
    I can’t put serious money on a stock where I don’t have clear visibility on value going forward. Sure I can try and out smart the market with a small bet here or there and hope my bet comes off and I double my money (or better) but that only happens at the margin of my portfolio where if a bet goes sour it doesn’t impact my portfolio in a major way.

    To make serious money, I need to see a serious story, with a serious production profile and a mine life that reaches into the foreseeable future and I’ve got to see a mine with a proven low cost performance or credible mine metrics that strongly indicate a low cost producer, not just a story about low costs. So far DRM have lost $89 million over two years and made about $3.5 million in the last quarter. Not good enough for me. Let’s see two sustained quarters of cash generation that enable the company’s current valuation. Let’s also see if they can produce between 80kozs and 100kozs for two quarters in a row before we herald the company with a row of trumpets. Even that level of production is quite unimpressive in this market but it’s better than the ~60koz/annum that they’ve managed to generate so far on this mine’s journey. If I want to double my money I could also go to the casino and put my money on red or black, but I’m not going to bet my house on those odds.Esh
 
watchlist Created with Sketch. Add DRM (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.