The original feasibilty study in 2016 had a project payback period of 21 months at A$1,600 gold.
That was before funding and capital raisings.
Dec 2018 quarterly had cash and cash equivilants at A$85.6 million and debt at $133.5 million, net debt of A$47.9 million.
Given commercial production was declared in January and the potential margins that the company could be getting between its hedge postion which averages A$1,756/oz and the current spot price I can't see payback taking 21 months anymore.
The hedge postion while smart and good insurance for the bankers only a few months ago could start to be a drag if the gold price surges any further, although the 158,249 ozs hedged is spread out to 2021. Does anyone know the breakdown on this hedge position. How much gold is committed in CY2019?
The cappers have tried to build a wall but given the average daily turnover in the stock the wall looks more like a few bricks laid out on the ground without any mortar.
Very much looking forward to the first quarterly report. Esh
DCN Price at posting:
$2.75 Sentiment: Buy Disclosure: Held
