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DCN, DACIAN GOLD LIMITED
mullokintyre
post Posted: Yesterday, 03:01 PM
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In Reply To: mullokintyre's post @ Feb 25 2020, 02:17 PM

Well, the updated reserves and mine life is out.
And I have been dudded again.
Only on 20 December when the company announced a new CEO and MD, they were still suggesting full year guidance in the range of 150,000 to 177,000 ounces at an AIC of 1499 to 1500..
Now its been revised downward to 138,000 to 144,000 at an AISC of 1550 - 1650.
And to top it off, production falls for the next three years then stabilises in the fourth.
They are effectively shutting down Westraia for three years while they work out a new and exciting way to mine.
And finally, the stock will stay in a trading halt till the end of march (at leats) while they work on a recapitalisation of the company.
Total Mineral Resources reduced by 40% from 3.5Moz to 2.1Moz (including 52% reduction at
Westralia from 1.5Moz to 0.7Moz).
Total Inferred Mineral Resources reduced from 1.1Moz to 0.6Moz, including 50% reduction at
Westralia from 528,000oz to 266,000oz

In July last year, they released a LOM report that had 1.1. million ounces of gold over next 8 years at an AISC of 1280 to 1380 per ounce, just from Mt morgan alone.
The first five years of the plan 170,000 ounces of gold per year.
At the end of September 2019, debt was 95 mill.
Cash on hand at the end of September was $54million
So what happened to drastically reduce production?
What changed that caused them to want to restructure debt when they cou;d have paid ha;f it off with cash reserves?
Won't answer their phone today when i rang to question whether a few of the bone heads might consider their position.
Dacian is now a dog, and it has been rolling in something smelly.
Mick




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mullokintyre
post Posted: Feb 25 2020, 02:17 PM
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In Reply To: mullokintyre's post @ Feb 19 2020, 09:56 PM

I actually called DCN today to try to find some info.
According to DCN, the mine life and reserves recalcs require the analysis of a lot of data for multiple sites.
Given its now over three weeks, it must be a hell of a lot of data, and they must be doing it on an abbacus.
The girl who answered had the spiel well rehearsed, I suspect i was not the first to query it.
Said the announcement would be out this week.
Pity it missed the run up in gold price and subsequent gold stock spikes.
It had better be a big increase in resources and mine life.
Mick



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mullokintyre
post Posted: Feb 19 2020, 09:56 PM
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In Reply To: triage's post @ Feb 19 2020, 06:47 PM

Howdy Triage, I don't recall bei9ng upset with someone you wrote.
Should I go back and re-read all your posts??
Nah can't be bothered.
You will have to re insult me if you want me to get huffy.
Don't care if DCN is on the auction block, as long as I make a buck out of it that is all that counts.
Whatever happens, Van Ecks will have a say. They have increased their holding by another percent to 6.5%.
Sold down some RMS today, when it went to 1.25 just before close.
EVN is the next one to go for a run, so have loaded up a bit.
Mick



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triage
post Posted: Feb 19 2020, 06:47 PM
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In Reply To: mullokintyre's post @ Feb 19 2020, 01:15 PM

Mick (if you are still talking to me wink.gif )

It often is the bankers rather than the geo's that ruminate for so long. Do you reckon it could be put up on the auction block?

I am not overly impressed by Ramelius bidding over $200m for a hope and prayer at Spectrum's Penny West (less than 400k oz of resources in narrow veins). I am toying with the notion that there is much better value for Ramelius in Dacian, albeit with serious problems needing to be sorted. But it does seem that Ramelius is all-in on using Penny West to cover for Vivien when it closes in a year or so, so it all is academic.



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mullokintyre
post Posted: Feb 19 2020, 01:15 PM
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In Reply To: mullokintyre's post @ Feb 12 2020, 10:38 AM

Wow, 16 days since the suspension of DCN as they await ore reserve and mine life recalcs.
Must be a big and complex one.
Mick



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mullokintyre
post Posted: Feb 12 2020, 10:38 AM
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In Reply To: mullokintyre's post @ Feb 3 2020, 10:11 AM

Almost immediately a suspension in trading pending release of drilling updates, ore reserves and mine life update.
Still not released anything in 9 days.
Must be a complicated report.
Or maybe they didn't want the insider traders having first dibs.
Mick



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mullokintyre
post Posted: Feb 3 2020, 10:11 AM
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I had thought that DCN was already on the topc list, as I am sure I had commented on it before, but old age is obviously getting to me.
The quarterly report will not help Dacian share price much, despite the gold increasing in value in AUD.
Although production was at the top end of guidance, of 77,000 ounces forthe half year, it was costly.
It had a negative cash flow for the quarter, with the already high AISC increasing to $1737 and oz. We will have to assume this is AUD, as it does not explicitly state which currency it is in.
Total forward hedging is 130,00 ounces at $1962 per oz. Some of these stretch out uinti l2021.
They never reduced the debt levels, and were still cash flow negative.
Will need a big increase in gold and/or a big drop in AUD to get this one up much further.
Will take my money and go elsewhere.

Mick



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post Posted: Feb 3 2020, 09:35 AM
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