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DCN, DACIAN GOLD LIMITED
nipper
post Posted: Mar 18 2021, 11:52 AM
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In Reply To: nipper's post @ Mar 18 2021, 10:26 AM

I think I got the Market Cap wrong .... with NTM not included, it had dropped to around $200M, but now the entity has a combined MC above $310M



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

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nipper
post Posted: Mar 18 2021, 10:26 AM
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Dacian Gold (DCN) has now merged with NTM Gold via a scheme of arrangement under which Dacian acquired all of NTM's shares. Under the deal, NTM shareholders receive one Dacian share for every 2.7 NTM shares they hold. Together, the combined group will be worth approximately $255 million.*

QUOTE
This merger will create value by delivering on our strategy of extending mine life, diversifying our production base and increasing operational flexibility at Mt Morgans. This is a logical step for Dacian to expand operations in our region by unlocking resources within haulage distance of our substantial processing infrastructure, enabling future resource and reserve additions to be brought quickly into production, said Dacian managing director Leigh Junk.
The merger with NTM creates an industry leading portfolio of advanced exploration targets underpinned by potential high-margin, low capital intensity development opportunities, which would significantly expand Dacian's production profile through the addition of high-grade deposits to our operating plan, further future proofing our business.
The merged group will be owned 68.4 per cent by Dacian shareholders and 31.6 per cent by NTM shareholders.


* now $200M cap... Is this value creating??




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
triage
post Posted: Feb 20 2021, 08:35 AM
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In Reply To: mullokintyre's post @ Feb 19 2021, 02:05 PM

I wish I could copy your move, Mick, but I'm already overweight in goldies. I saw some info on hc showing that Dacian has not fallen anything like some of the more established gold producers but at the current price I agree with you it still looks to be a real opportunity. Dacian's boss, Leigh Junk, seems to have really turned the company around and if they get the NTM purchase over the line in the next couple of weeks, which looks to be highly likely, then Dacian would become a solid proposition at still a very low market cap. NTM's The Hub, which got impressive infill results this week, looks to be a company maker for Dacian and if Mr Junk can salvage anything from the underground assets that are in care and maintenance then that would just be cream on top.


I have to say I am a little taken back by the collapse in the share price of gold stocks, with my old favourite, Ramelius, now down close to 50% despite the company itself performing brilliantly. For some time I've thought that Ramelius might show some interest in Dacian but Leigh Junk is doing such a fantastic job at Dacian that I suspect the Dacian share registry will want to stay the Dacian share registry.



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

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mullokintyre
post Posted: Feb 19 2021, 02:05 PM
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In Reply To: triage's post @ Jan 8 2021, 04:48 PM

Bought back into DCN at .37 today Triage, the announcements of drilling results today and the decline in all gold stocks was enough to take a punt.
May fall further, but thats ok, I will buy more if it does.
Mick



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triage
post Posted: Jan 8 2021, 04:48 PM
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In Reply To: mullokintyre's post @ Jan 8 2021, 03:01 PM

Mick - it's a 100k oz pa producer with a market cap of just on $300m (with both its debt and hedging issues getting sorted). With NTM tagged on to it, it's life of mine and resources will also look better. Put like that it doesn't look too toppy to me.

When all the ex-NTM holders join the DCN registry there will be lots of dilution and profit-taking so maybe by the end of February there could be some settling of contents. When the deal was announced the share registry was going to be one third ex-NTM and two thirds current DCN but that was when Dacian's market cap was slightly under $200m. Anyway I reckon the combined DCN-NTM will look far more robust than Dacian without the underground mines.



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog

Said 'Thanks' for this post: mullokintyre  
 
mullokintyre
post Posted: Jan 8 2021, 03:01 PM
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In Reply To: mullokintyre's post @ Jan 5 2021, 07:55 AM

DCN hit 55, up 3% when all my other goldies down.
Somebody wants a piece of the action, RSI booming up on the chart.
Question is, how far will it go before it gets chomped like the other gold stocks??
Mick



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mullokintyre
post Posted: Jan 5 2021, 07:55 AM
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DCN put out another solid quarterly.
Still on track for the top end of the yearly production guidance.
Would be good for a change to see this company surprise on the upside rather than the downside as has been the case for a the past two years.
Hedge book now down to half a years production, debt reducing so that the total cash and gold on hand would pay it down.
Things should look a little brighter in a years time, assuming the gold price keeps higher (or even better if it goes higher!).
Regret that SP did not get back to my price of 30 cents, has now gone nearly 50% higher than that buy in price, but that's the way things go sometimes.
Mick



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mullokintyre
post Posted: Nov 16 2020, 08:25 AM
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Well, looks like Leigh Junk has managed to make the dCN company bigger by merging with NM.
Have not looked at NTM as a source of trading/investment, so know nothing about them.
RMS it seems did not see enuff value on either co for a takeover.
Never got my sub 30 investment, so have no skin in the game.
Mick



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mullokintyre
post Posted: Sep 8 2020, 10:29 AM
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DCN struggling for traction.
Buyers have deserted it.
Maintaining my disciplined approach and waiting for sub 30.
Mick



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mullokintyre
post Posted: Aug 26 2020, 10:42 AM
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DCN down to 33.
If it gets to 30 I will buy in again.
It does have a defined production path for next three years.
Solid , but not spectacular.
They have almost enough cash on hand to pay off all debt, and are rapidly reducing their ridiculous hedge book, with it gone by the end of this Fin Year.
So, despite my previous aversion, I am going to go back in at 30 or uder.
Mick



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