Ann: Trading Halt, page-69

"What I am more concerned about is was the investor fear overblown six months ago"

No. It was on the money down at 18cents in my opinion. I was waiting for 12cents.

What has driven the price is not value but jawboning mainly about the Da Vinci discovery and some cherry picked AISC numbers. With all this jawboning the market cap has stacked on $50 million from its lows. That's some jawboning for you considering net debt actually increased since June 2017. The bottom feeder speculators think that a low SP is equivalent to value and don't factor in the risk. You just dismiss the risk of having one not fully proven mine, well that's your choice.

At 32cents DRM has a EV of about $138 million, it has one mine and might produce about 65koz of gold per year and about 2600t of Cu.

Take RMS for example with an EV of $170 million (no debt and $60 million in cash), it has two mills, three producing mining centres and four current mining localities with more in the pipe. The company produced record production in the Dec 2017 quarter of 58koz of Au, almost what DRM will produce in a year and has guidance set at 200koz-210koz Au with AISC of $1100-1200/oz.

.........and RMS trades with an EV of only $32 million more than DRM.

Incredible what jawboning can achieve and the number of people ready to lap it up. Esh

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Record group production 58,012oz @ AISC A$1,146/oz
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