DGR, page-6

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Nick Mather is not concerned about short term fluctuations in DGRs price.
He will have a 10-30 year view. He is a passionate geologist, not a banker and will be enjoying building DGR and subs into major resource companies.
He has neglected the treasury but currently this isn't a problem.
It seems certain that all options will be exercised in 2017 yielding 4.1mill
DGR should earn a further 1.2m from convertible note interest and interest on bonds etc.
Consistent with earlier years the management fees could be 1.0mill for the rest of the year.
This adds to 6.3m and with cash of say 0.5m the company can meet its overheads until 31.12.17.
Other funds could be derived from selling the AJQ notes to its new major shareholder or small parcels of shares in several subs could be sold.
The interest rate of 20% on the loan must have been the best on offer at the time. I am sure this could be renegotiated at some point or repaid from share sales.
The after tax profit for the 6 mths to 31.12.16 was 54.5m. The half to 31.12.15 was 4.4m
This is a profitable resource company factory and investment house.
The market has not recognized this yet. This coy has a PE ratio. Using 54m above for H1 and say add 36m for H2
we get 90M. Divide by diluted shares of 600m we get eps of 0.15. Thus a forward PE of less than 1.
The NTA including unlisted investments has been consistently between 0.30- 0.38 for nearly 6 mths. DGR has paid a dividend. This is not a tin pot one trick speccy pony.
I inserted the peak prices for the subs and the exchange rate for the pound for May 2016 when it was 2.03 AUD into my spread sheet and got an NTA of 0.50plus. This shows the potential when the stars align.
The ailing pound has had a dramatic affect on the value of SOLG and IRR. 1.60 back to 2.03 would see a gain of over 25% in the value of these 2 companies. This problem will be resolved by listing on exchanges with stronger currencies than the pound which remains hobbled by Brexit uncertainties.
This is a class act trading at a tiny fraction of its realizable value. When SOLG has a compliant resource and the 100 plus properties within listed and unlisted subs and within DGR itself come to fruition the price will rerate dramatically.
Waiken