I would urge all MYG shareholders to go through the great article (Gold mining journal) linked by richrichie several comments below on this page. Some MYG shareholders not aware of DRM might be thinking that they were just moving from the frying pan to the fire, but the reality is quite different.
The article clearly mentions that DRM had mentioned in the BFS that the second year (this year) would be slower due to its orebody composition and FY2016 (next year) would show stark recovery. The market overreacted when costs increased but DRM had clearly pointed out that this would happen in 2nd year, and thus it was hardly a surprise and just a temporary phenomenon.
Also see DRM price history this year. In May, when several gold and gold stocks were going down, DRM was still fairly stable at around 75-80 c. So, now with the merger, do the math and see how much more DRM should be now that cost issues have been clarified, it has phenomenally better mine life prospects, etc.
Time is our friend. Mr. market should eventually re-rate DRM (there is practically zero reason not to), and the real returns will hopefully come when gold itself picks up, in coming years.
All IMO; Please DYOR.
MYG Price at posting:
4.9¢ Sentiment: None Disclosure: Not Held
DRM Price at posting:
50.5¢ Sentiment: Buy Disclosure: Held