# DMM - DMC Mining



## Sean K (3 December 2007)

Ann out this morning that they have purchased a lease in the Congo that has an 'exploration target' of 750-800Mt of fe, including both magnatite and hematite, but doesn't break it down any further. 

Looks like a good ramp to me.

Will be interesting to see how it unfolds.


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## Sean K (3 December 2007)

Hmmm, the punters are lining up. Looks like just about the entire sell side is going to be wiped out. Risky for new traders to try and jump on IMO, best of luck to anyone who plays it.


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## kransky (3 December 2007)

i hate these sorts of announcements... estimates and vague numbers.. give me some drill hole results, hole locations.. maybe some gravimetrics..


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## Bushman (3 December 2007)

kransky said:


> i hate these sorts of announcements... estimates and vague numbers.. give me some drill hole results, hole locations.. maybe some gravimetrics..




I'm thinking more geography and politics with this one. Congo has been torn apart by civil war with millions dead over the years. It is definitely not Cameroon (ie Sundance). All for taking a risk but not with the Congo.


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## kransky (3 December 2007)

its actually in the 

"Republic of Congo"
http://en.wikipedia.org/wiki/Republic_of_the_congo

not the "Democratic Republic of the Congo"
http://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congo

These are two different countries right next to each other.

DMM's iron ore project is in the first one.. not great.. but if it was in the 2nd one then you can forget about it!


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## Sean K (10 December 2007)

Well, I thought this would die in the @rse after the traders bailed. 

Must be something more perhaps....


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## bigdog (10 December 2007)

DMM   	1.05  	  +0.300   	  +40.00%   	509,661 shares  	$474,371  @	10-Dec 12:43:58 PM

http://www.theaustralian.news.com.au/story/0,25197,22895916-18261,00.html

*Offshore predators circle the pride of our land*
Robin Bromby | December 10, 2007 

*Iron ore attractions*

SO will demand for iron ore. So much so, in fact, that deposits that have proved too hard in the past are getting another look-over.

The 1.5 billion tonne Gara Djebilet deposit in Algeria has previously put off some companies because of its high levels of alumina, phosphorous and arsenic. But now ArcelorMittal, Korea's Posco and China Metallurgical are running the ruler over it.

DMC Mining saw its shares double last week when it acquired 80 per cent of the Mayoko project in the Republic of the Congo. The Romanians estimated up to 800 million tonnes when they explored Mayoko for iron ore in the 1970s. The French state geological agency also did a great deal of work there. One of the key attractions is an existing railway running through the project to the country's main port of Pointe Noire. It's one of three big iron ore projects in the region - the others being Mbalam in Cameroon now held by Sundance Resources and the Chinese-owned Belinga deposit in Gabon - for which the developers, incidentally and sadly, plan a hydro-electric dam that may destroy the Kongou Falls, described as the most beautiful waterfall in central Africa.


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## asx256 (25 January 2008)

chart looks great imo. it is set to move higher. keep in mind that the company is worth $10,313,000 and with 13.75 million shares(55% held by top 20) it doesn't take long for it to reach $3-$5!!!

this is extract from yesterdays announcement:

• Initial infrastructure review completed
• DMC is encouraged by the review and is seeking to commence a more extensive scoping study on the Mayoko Iron Ore Project
*• Resource calculation currently underway*

Alot of people are comparing DMM with SDL at the moment, but with huge difference:

SDL: MC of $523 million 1.8 Billion shares, NO rail way, est 800MT +60 Fe
Current price $0.28

DMM: MC of $10 million 13 million shares, *with rail way*,* est 800MT  +60Fe*
current price $0.75

Hope you all can see the huge potential this stock has.


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## Sean K (25 January 2008)

asx256 said:


> chart looks great imo. it is set to move higher. keep in mind that the company is worth $10,313,000 and with 13.75 million shares(55% held by top 20) it doesn't take long for it to reach $3-$5!!!



asx, Please take note of ASF policies for posting price targets. ANY price target MUST be accompanied by some _attempted _FA or TA, or the post _usually _gets removed. So, can you please provide some justifcation, or it goes. Thanks, kennas


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## asx256 (25 January 2008)

DMM, jumped from 0.20 cents to $1.06 just in couple of days!(November to December 07).
All i am saying is that $5.0 a share will give it a $50 million market cap which is extremely cheap for a iron company IF they can prove 800MT +60Fe!
Don’t you think so?


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## Sean K (25 January 2008)

asx256 said:


> DMM, jumped from 0.20 cents to $1.06 just in couple of days!(November to December 07).
> All i am saying is that $5.0 a share will give it a $50 million market cap which is extremely cheap for a iron company IF they can prove 800MT +60Fe!
> Don’t you think so?



Yep, and I suppose the peer comparison with SDL satisfied the requirement too. Looks extremely cheap on that basis, but what price it should be is still questionable. Probably need to drill into it a little more to make sure the peer comparison has some strength.


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## asx256 (25 January 2008)

Well according to the company there was some drilling done by a French company, and the UN, about 15 to 20 yrs ago, but a lot has changed since then and we have to wait for more announcement it think.
But overall I think this company is xxxx atm. However buyers need to be careful with its liquidity, as there are not many shares out there!


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## alankew (8 February 2008)

Trading halt on this one,speculation on HC that its either a capital raising(hope not) or a resource estimate on original drill holes(that would be nice)


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## YOUNG_TRADER (5 May 2008)

Oh snap was so engrossed in GCR I didn't realise this went into a trading halt,

I have bought some but would have liked more, alot more 

It looks like a very cheap DSO Heamatite player in Africa

Has now gone into a trading halt pending a JORC

Has a historical resource of like 800Mts

Has 36m shares + 24m 20c options = $36m mkt cap at 60c


I'll try and put some more info together


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## alankew (5 May 2008)

YT that would be great to put some facts and figures together.Still holding some from IPO but sold some heads last week to buy more oppies after I noticed a bit of  action-problem is it is so thinly traded that any buying/selling gets interpreted as someone in the know.I know that my little sale last week caused a bit of anticipation that someone in the know was sellingTalk on HC has been of something big and also got a small mention in The West but havent seen the article.Did you get onto PSP


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## YOUNG_TRADER (5 May 2008)

Hey Alan

here's what I have so far

*DMM*​
*
Mkt Structure*
*
Shares*
28m 
13m 20c 30/6/09 options

* Cash $1m + $5m from options = $7m*


Mkt Cap @60c= $17m undiluted or $25m diluted





*
Projects**
Mayoko**  Iron Ore, 80%, CONGO in Africa NOT DRC*

The first thing to stress is that the project is in CONGO not DRC, Congo like Tanzania and Zambia border with the DRC however are relatively unaffected by its unrest

The project is within 30kms of Infrastructure and there is an exisitng 3mt p.a. rail line which leads straight to the exisitng Port Pointe Noire.
This is a huge advantage as the Cap Ex savings in having existing rail and port facilities will be huge, further more since the company has DSO Iron Ore the opportunity opens up for the company to look at a 2 stage operation

Stage 1 can be a small 1-3Mtp.a. DSO operation (similar to AGO) 

Stage 2 can be the big Elephant type project ie 30Mt's p.a. or something using the 750Mt-800Mt historic resource

More to come


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## YOUNG_TRADER (5 May 2008)

lol so my figures were actually right time the first before I amended them,

The reason for the confusion is that I worked out how many shares DMM had on issue + the 

*DMM*​
*
Mkt Structure*
*
Shares*
36m 
24m 20c 30/6/09 options

* Cash $1m + $5m from options = $7m*


Mkt Cap @60c= $21.5m undiluted or $36m diluted





*
Projects**
Mayoko**  Iron Ore, 80%, CONGO in Africa NOT DRC*

*Historical Resource 750Mt's - 800Mt's@56% Fe*

Lots of drill assays show good 30m-50m hits at 56% - 60% Fe ALL ENDING IN MINERALISATION

JORC due out and reason for trading halt

*@$10/t EV the Mayoko project is worth $4.2 - $4.5 Billion*

The first thing to stress is that the project is in CONGO not DRC, Congo like Tanzania and Zambia border with the DRC however are relatively unaffected by its unrest

The project is within 30kms of Infrastructure and there is an exisitng 3mt p.a. rail line which leads straight to the exisitng Port Pointe Noire.
This is a huge advantage as the Cap Ex savings in having existing rail and port facilities will be huge, further more since the company has DSO Iron Ore the opportunity opens up for the company to look at a 2 stage operation

Stage 1 can be a small 1-3Mtp.a. DSO operation (similar to AGO) 

Stage 2 can be the big Elephant type project ie 30Mt's p.a. or something using the 750Mt-800Mt historic resource


For more info see http://www.dmcmining.com.au/

http://www.dmcmining.com.au/download.php?fname=./uploaddir/announcement/Pdf_118.pdf

http://www.dmcmining.com.au/download.php?fname=./uploaddir/announcement/Pdf_111.pdf

So the next questions are how big will this intial JORC be?

How much should DMM be worth given the huge upside Mayoko holds?


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## smurfette (5 May 2008)

YT,

AGO is now capped at $1bn. 

DMM are only valued at $21.5million. Am i missing something?

What were AGO capped at at the stage DMM is now?

Smurfette


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## alankew (5 May 2008)

I think the figures being put about elsewhere in some ways have put people off-they just seem too big to be feasible based on the current MC of company.This and the fact that the reliability of the historical figures being used and the confusion over Congo and DRC.Still holding so hoping its not all pie inthe sky but now YT is onboard who knows where we will end up


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## YOUNG_TRADER (5 May 2008)

Alan I thought that too but then after I saw the re-assayed drill holes I changed my mind,

Like ACS and YML I knew it was only a matter of time for them to get a JORC, DMM in a lot of ways reminds me of YML (now BRM)

tiny unloved company trading at a huge discount to what it should be

The JORC should make peopel take the company more seriously, I've done some rough calcualtions and I'm expecting 20Mts-40Mt's@57%Fe @ $10/t Fe EV = $114m - $228m

= NET 80% DMM $91m - $182m

*Using 60M shares fully diluted = $1.50 - $3 DMM share price*

Like I said YML/BRM all over again

p.s. See the re-assayed drill holes

Note the reason I'm expecting the intial JORC to be so small is because only a very small part of the entire project was drilled on a closed space drilling grid which is required for the JORC, the rest of the drilling was wide spaced exploratory type drilling


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## Sean K (6 May 2008)

Hopefully the JORC`s at the higher end of those expected LN. 

I`ve held some for some time and was lucky enough to have picked the bottom to top up and reduce my average price to 50 cents, so looking ok from where I sit! In the Gran Sabana in SE Venezuela! 

I don't think there`s much country risk with this, and infrastructure looks good. Would be surprised if they took this to production themselves. Probably a farm in by a big player? Didn ´t they do some sort of roadshow in China recently?

Risk will be the JORC is at the lower end and the market`s anticipating more, especially since their ramps of 800Mt target! Would be nice if they can make that claim again due to the desk top study.


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## Gekko (6 May 2008)

YOUNG_TRADER said:


> Alan I thought that too but then after I saw the re-assayed drill holes I changed my mind,
> 
> Like ACS and YML I knew it was only a matter of time for them to get a JORC, DMM in a lot of ways reminds me of YML (now BRM)
> 
> ...








Compared to AGO (mkt cap $1b) and BRM (mkt cap $300mn) it looks favourable and very cheap.
I just hope it doesnt run like the above when their resuults came in as i want a chance to buy .
Do you have a price target YT?


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## alankew (6 May 2008)

Gekko if results are good I have no doubt it will run hard and fast.It is very thinly traded and also tightly held.Iron ore stocks are definitely still in favour,China is taking strategic stakes in selected companies(not DMM)and we still have the Rio/BHP price hike to come.Ann couldnt have come at a much better time IMO.I would be a happy man with a price of $2.99!


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## grace (6 May 2008)

*Looking at the figures being thrown around here, recent sale of DSO in the Pilbara (lower sovereign risk) at $4 tonne.  *

Is the railway line heavy guage to be able to transport the ore?  What is it currently used for?  Does it have spare capacity?  Who owns the railway line?

Just vital questions in the link to placing a realistic value on this.....


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## alankew (6 May 2008)

Grace I dont think the railway is quite up to the job but its a start.Think I read somewhere that the problem is with a bridge not being able to take the weight but as i say its a start.By the way,any way of knowing when it will be out of TH,apart from the ann saying Wed


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## YOUNG_TRADER (6 May 2008)

Grace I'm not sure what your refering to

The current Spot Price of Iron Ore is close to $200 US/t

The current contract price (not accepted by Chinese) but with Vale is $132 us/t


Back when Iron Ore contracts where around $80 US/t most if not all Aussie brokers used an EV or Enterprise Value of $10/t for JORC Haematite resources

So I'm guessing with such an increase that brokers will no doubbt rachet up there EV $/t but I'm happy using $10/t for DSO JORC Resources


Regarding the raily its not in use and hasn't been in use for some time

It's 3Mt'sp.a. and will need some maintainance and upgrade work no doubt, but the company inspected it and reported it appeared to be in a good useable condition

However the one thing that was destroyed was the actual rail wagons

My point is with an intial small high grade DSO resource, an exisitng 3mtp.a. rail line which runs straight to the port, DMM could possibly set up very quickly and cheaply (ie $10m CAP EX) a 1mt p.a. DSO operation 

For arguments sake such an operation would have an *Op Ex of say $50/t vs spot price $200/t = margins $150/t = $60m p.a. in Profit*

With its current undiluted mkt cap at $21m or diluted at $36m I think you can see the upside to which I point as such an operation would place the company on a *PER of 0.5*

But theres alot more work needed to get there, right now though the mkt cap is ridiculously cheap


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## grace (6 May 2008)

grace said:


> *Looking at the figures being thrown around here, recent sale of DSO in the Pilbara (lower sovereign risk) at $4 tonne.  *
> 
> Is the railway line heavy guage to be able to transport the ore?  What is it currently used for?  Does it have spare capacity?  Who owns the railway line?
> 
> Just vital questions in the link to placing a realistic value on this.....




Sorry to mislead.....$3.74 per tonne (jorc compliant) was for a recent sale of GIR's share in RHI's DSO in the Pilbara to AMCI.  

I don't think that any of my holdings in the Pilbara have a mc as high as $10/tonne DSO....wish they did though!

Would be very interested to know more about the health of the rail line!


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## YOUNG_TRADER (6 May 2008)

Ok I see what your saying Grace,

Alot of companies trade below the $10/t EV however as they approach production they trade much higher than $10/t as the actual profits they net on the production is now around $100/t+

So here 2 things to consdier

1. DMM is in Africa which isn't as "safe" as say our backyard Pilbara so perhap's a discount should be applied to the EV, though I can't see that being the case with SDL


2. DMM's intial JORC will only be a fraction of the project, remember the *historical resource here is 750Mt's-800Mt's@56% Fe* you just can't ignore this

So surely if the EV is to be discounted because its in Africa, some EV value must be given to the larget deposit size? say $1/t becuase it not yet jorc?

*WELL $1/t EV = $420m - $450m* which at 80% net interest and 60m shares fully diluted = *$7 - $7.50 DMM*


No matter how much you want to discount it given the sheer size of the historic deposit DMM should command a mkt cap of minimum $100m = *$1.67*


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## grace (6 May 2008)

Here is what I found on the rail line.  Iron ore a bit heavier than timber I suspect.



> RAIL
> The Comilog railroad was built for heavy haulage for the logging industry of Congo (Brazzaville). Currently in use and runs through the Mayoko licence area from the western side to the north eastern corner of the licence. The rail connects to the city of Pointe Noire on the Congo (Brazzaville) south west coast. Direct discussions between DMC and the Minister of Mining indicate the rail is accessible by DMC subject to normal commercial terms.




If market cap goes up too much, a bit of dilution coming.....



> ACQUISITION COSTS
> 
> DMC has agreed to the following consideration to consultants in relation to the acquisition of the Mayoko Iron Ore Project.
> On completion on DMC’s agreed review period, DMC will pay AUD$500,000 plus *issue*
> ...


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## smurfette (6 May 2008)

YT,

How was say AGO compared to DMM when it was at this stage?

Did it get recognition or was it the same as maybe that gives us insight into when DMM will get recognized?

Also what do you expect in terms of price???

Thanks,

Smurfette


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## YOUNG_TRADER (6 May 2008)

Hey Grace,

Yes dilution to come as well as a mention of funding requirments etc 

But bottom line no matter which way you slcie the GCR story I reckon at 60c/70c its wayyy undervalued, sure at $1.50 it may not be way undervalued but then we've got a long way to go to get there,

I'll try and put some proper research





YOUNG_TRADER said:


> Alan I thought that too but then after I saw the re-assayed drill holes I changed my mind,
> 
> Like ACS and YML I knew it was only a matter of time for them to get a JORC, DMM in a lot of ways reminds me of YML (now BRM)
> 
> ...






YOUNG_TRADER said:


> My point is with an intial small high grade DSO resource, an exisitng 3mtp.a. rail line which runs straight to the port, DMM could possibly set up very quickly and cheaply (ie $10m CAP EX) a 1mt p.a. DSO operation
> 
> For arguments sake such an operation would have an *Op Ex of say $50/t vs spot price $200/t = margins $150/t = $60m p.a. in Profit*
> 
> With its current undiluted mkt cap at $21m or diluted at $36m I think you can see the upside to which I point as such an operation would place the company on a *PER of 0.5*






YOUNG_TRADER said:


> Ok I see what your saying Grace,
> 
> Alot of companies trade below the $10/t EV however as they approach production they trade much higher than $10/t as the actual profits they net on the production is now around $100/t+
> 
> ...


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## YOUNG_TRADER (6 May 2008)

Smurfette to be honest I never really followed AGo early days so I wouldn't be able to tell you

Also there are many differences between DMM and AGO mainly being one is in Pilbara and the other Africa

Also DMM is working a historical project which would have been uneconomic at low Fe prices of say $30/t Fe but given current spot prices of $200/t and even contract prices of $150/t such a deposit would be more than economic

Having thought about it for awhile I realised the most obvious comparison can be made with SDL, SDL is also working a historic deposit so lets compare the Mkt Caps and EV's and see how DMM stacks up

*SDL*​
*Mkt Structure*
*Shares*
2,000 Billion shares + options

* Cash $60m*

Mkt Cap @25c= $500m diluted


*Projects**
Mbalam**  Iron Ore, 100%, Camreoon *

*1,100 Mt - 1,200 Mt @ 39% Fe Historical Resource
100 Mt - 140 Mt @ 60% Fe Historical Resource*

The project is in Cameroon which borders Congo the funny thing is not only are these 2 companies very comparable but they are also very close to each other

@ a mkt cap of $500m the company is trading on an EV of $3/t per prospective tonne Haematite and around 50c per prospcective tonne of Magnetite (ie $250m for the Haematite and $230 for the Mag)

CAP EX = $3.3Billion

Well funded, well backed and supported by Insto's, excellent management



*DMM*​
*Mkt Structure*
*Shares*
36m 
24m 20c 30/6/09 options

* Cash $1m + $5m from options = $7m*

Mkt Cap @60c= $21.5m undiluted or $36m diluted


*Projects**
Mayoko**  Iron Ore, 80%, CONGO in Africa NOT DRC*

*Historical Resource 750Mt's - 800Mt's@56% Fe*


using SDL's $3/t per Haematite = *@$3/t EV $1.2 - $1.35 Billion*


JORC due out and reason for trading halt expecting *20Mt's - 40Mt's@56%Fe* as only a very small part of the area has be re-assayed for JORC purposes, its a starting point nevertheless




*Conclusions*​
*SDL Mkt Cap $500m Historic Resource 1,150Mt @39% Fe +120Mt@ 60% Fe *

*DMM Mkt Cap $36m Historic Resource 775Mt@56% Fe*

*- Same parts of Africa =  similar country risk
- DMM has existing infrastructure which may be an advantage and reduce Cap Ex considerably ie RAIL and Port savings
- SDL has some excellent people behind it and managing it

All in all DMM does look awfuly cheap when compared to SDL*


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## smurfette (6 May 2008)

SDL Mkt Cap $500m Historic Resource 1,150Mt @39% Fe +120Mt@ 60% Fe

DMM Mkt Cap $36m Historic Resource 775Mt@56% Fe


$500mn against $36mn where the $36mn resource has a far larger hemitite component


I think you could say it compares favourably (to say the least) with SDL.


Are management between the two the major reason behind the  500mn vs 35mn difference.

Anyone know much about DMM's management?



Smurfette


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## YOUNG_TRADER (6 May 2008)

Smurfette it could be many things, why is BHP bigger in Mkt Cap than RIO etc etc?

But I think with DMM its one thing really EXPOSURE

No one knows about DMM and this maybe due to the fact that the company isn't really promoted,

Compared with SDL which have George Jones and Ken Talbot on board, 2 of the industry's most watched and followed players

So yes in asense it is to do with management, not so much their quality but rather the fact that George Jones and Ken Talbot have a massive following and this in itself creates awareness and exposure for the stock

But the conclusions I came to speak for themselves, at some point or another the mkt will begin to appreciate this company's huge potential ala IRC GCR



*Conclusions*​
*SDL Mkt Cap $500m Historic Resource 1,150Mt @39% Fe +120Mt@ 60% Fe *

*DMM Mkt Cap $36m Historic Resource 775Mt@56% Fe*

*- Same parts of Africa =  similar country risk
- DMM has existing infrastructure which may be an advantage and reduce Cap Ex considerably ie RAIL and Port savings
- SDL has some excellent people behind it and managing it

All in all DMM does look awfuly cheap when compared to SDL*


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## YOUNG_TRADER (7 May 2008)

Well I woke up early today to see DMM's JORC and here it is

Came in at the midrange of my guess being *JORC 33MT's@55.5%Fe*

also the total target is *110Mt's-135Mt's@55%-58%Fe+ 750Mts- 800Mt's @35%-45% Fe* 


*Conclusions*​
*SDL Mkt Cap $500m Historic Resource 120Mt@ 60% Fe + 1,150Mt @39% Fe*

*DMM Mkt Cap $36m JORC 33Mt's@55.5%Fe + historic/target 125Mt's@57%Fe+ 770Mts@40% Fe* 


*- Same parts of Africa =  similar country risk
- DMM has existing infrastructure which may be an advantage and reduce Cap Ex considerably ie RAIL and Port savings
- SDL has some excellent people behind it and managing it

Given the very comparable JORC's DMM's mkt Cap should at least be 1/4 that of SDL's = $150m = $2.5 DMM*


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## YOUNG_TRADER (7 May 2008)

Found an interesting article waiting for me in my email acc (thanks google alerts  )

http://www.theaustralian.news.com.au/story/0,25197,23656954-5005200,00.html

Should draw some interest



*DMC ready to make most of Mayoko *

Font Size: Decrease Increase Print Page: Print Kevin Andrusiak | May 07, 2008 

PERTH-BASED junior explorer DMC Mining is expected to add to the iron ore mania on the bourse today when it releases its maiden resource statement for its Mayoko project in Africa.

The company was in a trading halt yesterday pending the announcement, which is expected to show an initial resource of 33 million tonnes of hematite ore grading upwards of 55 per cent. 

DMC is believed to be eyeing a resource of up to 135 million tonnes at the Mayoko project, in the Republic of the Congo's Pre-Cambrian Congo Craton. 

The explorer has managed to build an initial inferred resource based on only limited drilling at Mayoko and will press on with an estimated 30,000m drill campaign from next month. In its favour is the fact that the deposit is only a few kilometres from rail facilities and the deposit is open at depth and along strike. 

DMC is also looking to prove up a magnetite resource for the project with the magnetite mineralisation hidden by the hematite ore. The Republic of the Congo, often confused with the Democratic Republic of Congo, is considered to be one of the lower risk nations in Africa in terms of security and politics.


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## YOUNG_TRADER (7 May 2008)

Guys I don't mean to keep harping on here, but this stock is now ridiculously undervalued, its trading at 1/10th of SDL's MKT CAP despite having a comparable resource

I don't think SDL even has a JORC yet

Guess I'll just have to sit and wait for a re-rating shouldn't take to long and it will come 

*Conclusions*​
*SDL Mkt Cap $500m Historic Resource 120Mt@ 60% Fe + 1,150Mt @39% Fe*

*DMM Mkt Cap $48m JORC 33Mt's@55.5%Fe + historic/target 125Mt's@57%Fe+ 770Mts@40% Fe* 


*- Same parts of Africa =  similar country risk
- DMM has existing infrastructure which may be an advantage and reduce Cap Ex considerably ie RAIL and Port savings
- SDL has some excellent people behind it and managing it

Given the very comparable JORC's DMM's mkt Cap should at least be 1/4 that of SDL's = $150m = $2.5 DMM*


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## Sean K (7 May 2008)

YOUNG_TRADER said:


> Guys I don't mean to keep harping on here, but this stock is now ridiculously undervalued, its trading at 1/10th of SDL's MKT CAP despite having a comparable resource
> 
> I don't think SDL even has a JORC yet
> 
> ...



*Looks good LN. Bit of profit taking by the look. I ´m holding due to the potential fundies. Plus, I can`t trade at the moment anyway. Internet here is crappo!!! It's buro speed!!*


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## YOUNG_TRADER (7 May 2008)

Yeah Kenna I'm with you I bought more today at 80c ish and 70c ish

Its trading on a value 1/10th that of SDL's yet the deposits are comparable

Re-rating will come, matter of when not if just like IRC ACS GCR

Sit back and wait for it I say


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## YOUNG_TRADER (8 May 2008)

This has to be the most undervalued Fe play I've seen for a long time,

Its trading at less than *1/12th of SDL* its most comparable cousins mkt cap

I mean come on? 

I'm putting my money where my mouth is I picked up another 50k at 60c (bought more at 70c and 80c yesterday too)

I firmly believe that DMM should trade at around 1/4th - 1/3rd SDL's mkt cap

*So either SDL drops to like 5c or DMM rises to $2*

I know which one I think is more likely 




YOUNG_TRADER said:


> Guys I don't mean to keep harping on here, but this stock is now ridiculously undervalued, its trading at 1/10th of SDL's MKT CAP despite having a comparable resource
> 
> I don't think SDL even has a JORC yet
> 
> ...


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## desolator (8 May 2008)

whats with the drastic drop in price, and their is almost no buyers lined up for this stock anymore.. any1 care to speculate as to why people are moving away from this stock atm? jitters ?


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## grace (8 May 2008)

Comparison to SDL.....mmm, personally think SDL is overvalued.

SDL  MC = $440 mill targeting mostly mag and 100 mill tonne or so of DSO in high sovereign risk nation.

GIR MC = $335 mill.  Targets of over 1 billion tonne DSO in low sovereign risk nation. (targets of Earaheedy +1 billion tonne DSO, Weld Range 10-20 mill tonne DSO, Beebyganna 30 - 50 mill tonne DSO, Western Ck Pilbara 50 - 100 mill tonne DSO, McPhee Ck no target yet DSO from surface, strike length 8kms).  Note that this doesn't even put a target on their mag......could be in the billions of tonnes at Earaheedy on a couple of hundred kms strike length. $70 mill in the bank + plenty of other listed investments.

My conclusion, SDL overvalued.


----------



## lampard (8 May 2008)

I'm with you YT, getting in early this time. 

Has to be re rated sometime soon, it's just ridiculously valued at the moment.


----------



## YOUNG_TRADER (8 May 2008)

Well DMM looks to have bounced off 60c support, both the chart and the depth suggests 60c should act as good support going forward

Crazy really when you consider how cheap this is

Grace how overvalued is SDL? ? ? Surely your not going to say 12x overvauled, what 2x? so even if SDL was half what it is now, at 1/4th SDL DMM would still need to be 2x what it is

I'm going to keep saying it so I can say I told you so but I believe firmly DMM has 3-4x upside over the next few months


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## Duckman#72 (8 May 2008)

grace said:


> *
> Is the railway line heavy guage to be able to transport the ore?  What is it currently used for?  Does it have spare capacity?  Who owns the railway line?
> *



*

If you go to their website it provides some good guidance on this. I was quite impressed actually. Previously used to carry 3M tonnes of manganese annually. Considering the proximity it reads pretty well.

Hopefully onwards and upwards. 

Duckman*


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## tigerboi (8 May 2008)

desolator said:


> whats with the drastic drop in price, and their is almost no buyers lined up for this stock anymore.. any1 care to speculate as to why people are moving away from this stock atm? jitters ?




Profit takers will send it lower & once the t3ers are finished watch it go...

monday will be a good guide,got a tip for this last week & decided to just watch...as with sdl i didnt like it because of the africa factor...much prefer an aussie IO..tb..


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## grace (8 May 2008)

Duckman#72 said:


> If you go to their website it provides some good guidance on this. I was quite impressed actually. Previously used to carry 3M tonnes of manganese annually. Considering the proximity it reads pretty well.
> 
> Hopefully onwards and upwards.
> 
> Duckman




I did some calcs on that railway line usage.  To move 250 000 tonnes a month they would have had their rail lines going up and back something like 11 return trips each day over roughly 500kms each way.

ie  250 000 tonne / 45t / 17 wagons / 30 days = 11 return trips per day. 

I then compared pictures of this rail line to Fortescue's new line.  This one looks pretty light to me.  I expect the mining study will require a major upgrade to this 500 km line to take heavy iron ore.  Just my thoughts, and I've been wrong before.  Also need to build a port.  Here is the  initial infrastructure review.   

http://imagesignal.comsec.com.au/asxdata/20080124/pdf/00805395.pdf



> The railway was constructed around 45 years ago primarily for the transport of manganese ore to Point Noire. Discussions with government personnel and villagers indicate the ore was transported in 17 wagons, each of 45t capacity being pulled by two locomotives at a rate of 250,000 tonnes per month.




Not saying there is not upside in this, just making readers aware that there could be major costs for infrastructure like all iron ore projects.


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## d_crome (8 May 2008)

Hate to play devils advocate on this one - but there are some disturbingly large impurities of silica in some of the results issued by the company - any thoughts of how this could be the potential reason DMM is currently "undervalued"??


----------



## YOUNG_TRADER (8 May 2008)

Devils advocate is fine,

People played plenty of that on YML at 16c CUL at 5c and recently ACS at 15c-20c 

It amazes me how time and time again people choose to look at the glass is half empty point of view, 

All I'm saying is take everything in perspective

Ask yourself the following questions

*What is SDL's Mkt Cap?  = $450m - $500m
What is DMM's? $35m - $40m

How many companies are there listed on the ASX with a JORC of 33Mt's@55.5%Fe with upside target of 125Mt's@57%Fe as well as 770Mts@40% Fe all for under $50m mkt cap? please give me a list

So the current Haematite has impurities, ok well whats the mag worth? ? ?
Most W.A. based deposits of that size are selling 70% for $250m cash + keeping a 30% free carried interest, so what would DMM get? *

Let me guess because its Africa DMM will get $2 for an 800Mt Mag deposit and a lolly pop if there lucky? ? ? ?


I'm sticking to my guns here and will happily buy more around 60c, it will be interesting to look back on this in 1-3months


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## d_crome (8 May 2008)

YT mate - I never doubt your prowess in finding a gem amungst the rough - however by nature I'm a straight shooter and will generally state what I'm thinking.

In this case it's like I've walked by a 2007 Ferrari with a big "FOR SALE" sign on it with an asking price of 20K....so sure it seems to good to be true - hence my mind will say "if this is such a good deal, why is it still here?".

Unless of course the most overlooked fact is that it's simply cheap because nobody else has noticed it - while you're the optimist, I by definition am a pessimist though if shown enough data I'll swing my opinion.

I guess my point is that I feel this is "too good be true".  I mean, HUGE resource, existing infrastructure nearby - I mean, join the dots and this thing SHOULD be booming - though it isn't.

Again - I know a stock market isn't driven by rationalities - it's driven by emotion and sentiments which can possibly explain this stock.

I'll keep watching - but I'm on the fence right now. 

And maybe not a lollypop - maybe a Choc Wedge and we're talking...lol


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## YOUNG_TRADER (8 May 2008)

D_Chrome that wasn't directed at you mate

+ I was having a bit of fun 

Anyway I just grabbed more of the "Ferrari" at 60c :

p.s. Choc Wedge? one of those Mars Bar Icecreams maybe, or a Magnum, ok I'm drolling on my keyboard now lol


----------



## d_crome (8 May 2008)

LOL - give me an Orange Sunnyboy and we'll call it even. LOL

I know that you weren't attacking me or my view but just reinstating your determination of value - it's all good.


----------



## tigerboi (8 May 2008)

grace said:


> I did some calcs on that railway line usage. To move 250 000 tonnes a month they would have had their rail lines going up and back something like 11 return trips each day over roughly 500kms each way.
> 
> ie 250 000 tonne / 45t / 17 wagons / 30 days = 11 return trips per day.
> 
> ...




I work in the transport industry & ive just had alook at the line & the wagons(by the way comparing this with fmg is akin to a ferrarri v model t ford) the line & wagons will need to be upgraded to modern standard..for me its an ugly look...1960's gear to run in the 2000's...mmm but being africa its going to get done cheap but its the quanity & quality thats needed...

how far is it from the mine to port 1 way?fmg is 260kms...tb


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## grace (8 May 2008)

tigerboi said:


> I work in the transport industry & ive just had alook at the line & the wagons(by the way comparing this with fmg is akin to a ferrarri v model t ford) the line & wagons will need to be upgraded to modern standard..for me its an ugly look...1960's gear to run in the 2000's...mmm but being africa its going to get done cheap but its the quanity & quality thats needed...
> 
> how far is it from the mine to port 1 way?fmg is 260kms...tb




I haven't been able to find the distance per company announcements, but given SDL's distance of 600km odd, this line looked about 500km odd in comparison.  I did a rough calculation on screen....very rough by the way.  Happy to be corrected.

Any company can find iron ore these days, but getting the transport organised is the biggest hurdle all speccies face in my opinion.


----------



## enigmatic (8 May 2008)

Hey YT just reading a few of your posts. was wondering when you mentioned

"DMM Mkt Cap $36m JORC 33Mt's@55.5%Fe + historic/target 125Mt's@57%Fe+ 770Mts@40% Fe."

Where does the 125Mt's@57%Fe comes from and what is this 770Mt@40% Fe. Are these Historical estimates.
Cheers for your input in advance.


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## YOUNG_TRADER (8 May 2008)

Hey Enigmatic,

They were historical estimates/deposit however don't qualify for the JORC code, new work and re-assaying has been done and thus we have  a JORC and upside targets

See the ann released Wednesday Morning

Cheers

p.s. So does SDL have any existing rail at all along their 600km path? ?  ?

I'm no engineer but I've heard that saying "Its easier to walk the path well troden" ie surely its alot easier to upgrade an exisitng rail line than it is to build a new one ? ? ?


----------



## YOUNG_TRADER (9 May 2008)

Well another one of my no brainer undervalued stocks has been re-rated 100%,


I will keep saying it but at current levels DMM are so ridiculously undervalued well you know the rest,

Do yourself a favour guys look at the mkt cap of DMM, then look at others such as SDL, even the ones in W.A. with nothing but targets ie MDX even MXR today and then ask yourself is it a matter of if or when? ? ? ?


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## alankew (9 May 2008)

YT have you ever looked at LML,might not be in the same league as DMM but they are in OZ and have infrastructure coming out of their ears.JV with an Indian company,results due soon form IO project and other they are not a one trick pony.Apologies for hijacking thread


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## Sean K (10 May 2008)

alankew said:


> Apologies for hijacking thread



LOL Alan.  Maybe a PM would have been better, or have you posted something in the LML thread? 


This does still seem way undervalued as YT has identified. I`ve only just had a chance to look at the ann and love that they`ve ben able to ramp the 800Mt numbers again, on top of some more qualified DSO. 

Good recovery yesterday. Was really surprised with the sell off the other day. Must have been longer term holders trying to cash in, or day traders getting in and seeing the price fall, bolted for the door. Weird. 

(holding)


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## YOUNG_TRADER (10 May 2008)

Alan had a look, 

Its a spec with a target, no drill holes nothing I could find to really back it up, no where near the same as DMM so not comparable at all


I've found some very interesting info on DMM today such as what do *DMM SDL and AGO* have in common?????

Answer = They all have the Insto *PASSPORT CAPITAL* http://www.passportcapital.com/ as a backer, go to the web page and you will see *Passport is a $4Billion + Fund *which no doubt has a very large research division

So ask yourself why would a large Multi Billion Dollar fund who has obviously spotted value in SDL and AGO waste its time with DMM?

Well it obviously see's something there of great value, *SDL is a $500m mkt cap company, AGO now is over $1BILLION and DMM? ? ?  $40m *

I'm going to check to see what other Iron ore plays Passport has a stake in, so far they seem like advance $500m - $1Billion Mkt Cap companies which bodes well for what they must think of DMM


----------



## YOUNG_TRADER (10 May 2008)

Hmmm my pics didn't come up 


I've found some very interesting info on DMM today such as what do *DMM SDL and AGO* have in common?????

Answer = They all have the Insto *PASSPORT CAPITAL* http://www.passportcapital.com/ as a backer, go to the web page and you will see *Passport is a $4Billion + Fund *which no doubt has a very large research division

So ask yourself why would a large Multi Billion Dollar fund who has obviously spotted value in SDL and AGO waste its time with DMM?

Well it obviously see's something there of great value, *SDL is a $500m mkt cap company, AGO now is over $1BILLION and DMM? ? ?  $40m *

I'm going to check to see what other Iron ore plays Passport has a stake in, so far they seem like advance $500m - $1Billion Mkt Cap companies which bodes well for what they must think of DMM


----------



## adobee (10 May 2008)

Relax with posting anymore great information until I start buying on Monday morning !!!!! This does look to good to be true .. as such I cant take the chance of missing out.. 




YOUNG_TRADER said:


> Hmmm my pics didn't come up
> 
> 
> I've found some very interesting info on DMM today such as what do *DMM SDL and AGO* have in common?????
> ...


----------



## Gekko (10 May 2008)

YOUNG_TRADER said:


> Hmmm my pics didn't come up
> 
> 
> I've found some very interesting info on DMM today such as what do *DMM SDL and AGO* have in common?????
> ...




yt, their dollar value positions in SDL and AGO i presume were much larger then for their current dmm position so can we expect further buying? Do you know if their active investors who get involved with management or are they just passive and happy to just enjoy the ride?


----------



## grace (10 May 2008)

*As Pilbara jorc DSO currently attracts a $4 tonne sale value in the ground, I would discount 50% for sovereign risk in Africa (and remember freight differentials are coming).*

Can we look at BRM in the Pilbara (Brockman Resources)
*MC = $250 mill*

*1.1 billion tonne iron ore (jorc resource)*

of that 50 mill tonne DSO x $4 = $200 mill

         505 mill tonne mag x $0.10 = $50 mill (mag upgradable with simple benefication to 57.5 - 59.5%)  I won't count the lower grade mag to be very fair to DMM, nor extra drilling to firm up a bigger resource, I'm trying to be very fair).

*Total MC = $250 mill *with *BHP rail line running straight through it and FMG rail30 kms away* (don't have rail agreement yet but working on it with ex BHP iron ore chief running Brockman).

As I said, would personally *discount 50% for Africa and freight differential*.

DMM     Lets *use their targets*hey!

DSO  Target 120 mt x $2.00 = $240 mill
mag   Target 775 mt x $0.05 = $39 mill

*Full valuation once all drilling done assuming meets targets*
$279 million  ie a share price of *$3.72 (80% of $4.65  *(will be less if rework dilution due to purchase which I'll again sway in favour of DMM). Shares 60 mill

*Using their jorc*
DSO  33 million tonne x $2 = $66 million =* $1.10 x 80% = $0.88*(shares 60 mill)

So per my valuations (I don't think it is fit to compare to SDL which, in my opinion is way overvalued as per my previous posts)

*I get a current price target of 88c for the jorc

Overall price target if targets of iron ore prove up $4.65 x 80% = $3.72*

Just my two cents worth, and now I'm going to be absolutely battered on this thread for putting in a lower valuation.  Please don't beat me up too badly......Africa is Africa in my opinion and worthy of discount.


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## desolator (10 May 2008)

adobee said:


> Relax with posting anymore great information until I start buying on Monday morning !!!!! This does look to good to be true .. as such I cant take the chance of missing out..




Hear hear to that, I think im gonna have to top up on this one now!  Monday morning is going to be crazy I reacon..should be interesting! Good luck to every1!


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## YOUNG_TRADER (10 May 2008)

Grace you are entitled to your opinion

Currently you don't see much value in DMM so please don't buy, I'm not forcing you to, lol

I do see alot of value in DMM and so have been buying, bought a heap more 80c then 70c then 60c, so I am putting my money where my mouth is

I notice your using BRM as a peer comparison, the interesting thing is if you research BRM far back enough, ie when it was YML you'll see that at 16c I was very very bullish and many were not, I don't remember seeing you around there

As I have said lets wait and see what time brings

I think you are being ridiculously conservative with your valuations, you probably think I'm being ridiculously optimistic, the problem is though getting stuff like ACS IRC GCR and now MXR right only sorta instills my faith that I kinda should trust my judgement

Anyway I'll be around in a few months, so we can see who was right and who was wrong,

*My call is DMM will hit $1.50/$2 within 3months thats my call*

So whats yours Grace?? stay at current levels???? 


p.s. I'm glad Passport agrees with me they bought at 95c - $1+ and that was well before a JORC or any of these confirmations


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## lampard (10 May 2008)

In any case grace, you could have (should have perhaps) bought 2-3 days ago when the sp was 60c. Then your  (in my opinion overly conservative) valuation would mean roughly a 50% gain. 

I'd be very happy with that thanks.


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## alankew (10 May 2008)

Passport bought on market and were happy to pay up big for their stake,page 4 of the ann gives all the details but looks like they paid on average 90c plus.Also the company that they have appointed to do the scoping study is GRD Minproc and from the appropriate ann"GRD Minproc has extensive African experience and current work includes projects
in the Democratic Republic of Congo, South Africa, Mali and Zambia. The company
has a proven track record in delivering projects in logistically challenging locations
across Africa and around the world."
Was told that this company also did the same sort of work for SDL but cant find any anns on it.Still like LML:


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## Gekko (10 May 2008)

grace said:


> DSO  Target 120 mt x $2.00 = $240 mill
> mag   Target 775 mt x $0.05 = $39 mill
> 
> *Full valuation once all drilling done assuming meets targets*
> ...




Grace, you get 88cents for the 33mt JORC just announced.

What about the other 100mt of haemitite and the 750mt of magnetite? At 88cents you give no value? Nothing at all?

Sure, its not JORC, but its still worth plenty. Lets use *your model* on the *remaining 100mt* of haemitite but only *discount it by 75%* to account for it not been JORC.

100mt x $2 x 0.25 (75% discount) = $50mn.

$50mn/60mn shares = another *90cents per share* (roughly)

*88cents* (*your figure* based on 33mt jorc) *+ 90cents* (75% discount on excess 100mt estimate) = *$1.78* for the *haemitite only*

Even at $1.78 no is given to the magnetite target and id also dispute you 5c per tonne value. 1 tonne of magentite is worth a lot more then 1/40th of a tonne of haemitite.


My two bob but ill leave the poper analysis to others.


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## Gekko (11 May 2008)

A few typo's in that one. When i said, "Lets use your model on the remaining 100mt of haemitite but only discount it by 75%", i was obviously saying, lets use *your model* but *discount it by a further 75%* to be *conservative*.

Your $4 per tonne figure has been cut to $2 and then by *a further 75%* for the *remaining 100mt to $0.50 per tonne.*

The magnetite also needs to be valued. It was late at night, i was tired 

I hope its clear?


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## grace (11 May 2008)

Gekko, valuation of jorc at present 88cents.

Based on proving up targets $3.72

I've chosen to discount Africa by 50% to oz iron ore due to sovereign risk and freight differential.

Young Trader, all I ask of you is to be consistent with your figures.  One minute you are on the Sundance thread saying how rediculously overvalued it is.....next minute, you are using this same "overvalued" thought to give a valuation to DMM.

I think it is very important that you be consistent with the content that you post.  

Cheers Grace

PS  If they can get 3 million tonne of iron ore on that track per year, you'll have a very big apology from me!

Here is YT's post on Sundance just so you all don't think I'm crazy...



> Young Trader on Sundance thread on 17th April 2008
> 
> Oh wow, yep certainly right 1.8Billion Shares @ 26c = *$500m crazy*!!!!!!!!!!!
> 
> ...


----------



## Miner (11 May 2008)

grace said:


> Gekko, valuation of jorc at present 88cents.
> 
> Based on proving up targets $3.72
> 
> ...





Gees Grace

I am surprised to see your vigilant eyes on the conflicting (?) postings from our most respected expert YT. I am sure he has the reasons to use a conflicting valuation and would be interested to see YT's comment on your posting. I also saw the same post in SDL (where I have burnt substantial investment ) and struggling to book my loss emotionally. However I did not have the courage to contradict YT. He has some consistent and excellent posting in DMM, GCR and likewise and with my shallow knowledge did not have the same courage like you have. 

ANy way my humble request to YT to please come out with some clarification on SDL 

Regards


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## YOUNG_TRADER (11 May 2008)

Grace you are being very sneaky here, you've purposely mis-quoted me

Do have an issue with me or something?

If your going to cut and paste posts why not read the whole SDL thread hmmmm??? 

I did 3 posts on SDL and they appear below in the order I did them

The first was



YOUNG_TRADER said:


> Was just reading SDL's ann today,
> 
> Those are some impressive estimates,
> 
> ...





Then somebody advised me of the amount of shares on issue and I also realised the huge growth it had experienced




YOUNG_TRADER said:


> Oh wow, yep certainly right 1.8Billion Shares @ 26c = $500m crazy!!!!!!!!!!!
> 
> I thought that they did some share consolidation back from when they were a 2c stock????????
> 
> ...





Finally my LAST post a few days later was after I sat down and worked everything out and I had this to say




YOUNG_TRADER said:


> Hi guys,
> 
> Its always been on my mind whether SDL was overvalued, undervalued or fairly priced.
> 
> ...





So do you see that Grace or are you blind????

Clearly you saw that but chose to ignore it,

I'm not sure what your issue is

I'll stand by that, based on what I have seen with SDL it APPEARS to be fari value with a $500m Mkt Cap BUT HIGH RISK


*DMM with a comparable project in a comparable country location may also be fair value if/when it reaches $500m but at $40m it is cheap*



So Grace stop mis-quoting me


And you still haven't answered my question whats your call??


----------



## YOUNG_TRADER (11 May 2008)

I just took another look at your post and looked at the SDL thread,

You clearly must have some sort of an issue against me,

My last post where I clearly stated SDL looks *"fair value atm although high risk"* is the second last post in the thread, you would have to be blind not too have seen it


Also the bit you've chosen to highlight and bold out of my post means exactly what it does

*AT $500M Mkt Cap* SDL isn't my kinda stock

*IF DMM where $500m* it wouldn't be my kind of stock

But heres the point so pay attention Grace *DMM is less than 1/10th that*, so thats why its MY KINDA STOCK

Anyone else here think that I was purposely mis-quoted?? please read Grace's post and lok at the bit thats been selectively quoted and bolded, then look at my posts in SDL and tell me if I'm reading into it too much


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## ans25 (11 May 2008)

I know who is going to be laughing to the bank in x months, so lets just relax for the time being!

Next week should be important I think


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## kevinecom (11 May 2008)

YOUNG_TRADER said:


> I just took another look at your post and looked at the SDL thread,
> 
> You clearly must have some sort of an issue against me,
> 
> ...




YT,
U got my respect for sure and other ASF members, as ur research helps lot of members make good $$$$ profit.


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## grace (11 May 2008)

Hi YT, 

On 17/4/08 you posted that Sundance's valn was crazy.

On 5/5/08 you posted to say Sundance's valn was fair.

On 5/5/08 you started posting on DMM, and now use Sundance's value as a basis for comparison.

All I ask of you is to be consistent with your posting.

Thanks
Grace


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## YOUNG_TRADER (11 May 2008)

No Grace I am being cosistant with my posts

You on the other hand are trying to mis-quote me

on the 16/4/08 I first posted on SDL (first post every) saying I was very impressed with the deposit and the estimates




YOUNG_TRADER said:


> Was just reading SDL's ann today,
> 
> Those are some impressive estimates,
> 
> ...




Then Kransky advised me about the number of shares on issue, I never knew there was that many so I posted this




YOUNG_TRADER said:


> Oh wow, yep certainly right 1.8Billion Shares @ 26c = $500m crazy!!!!!!!!!!!
> 
> I thought that they did some share consolidation back from when they were a 2c stock????????
> 
> ...




Where did I say the value was crazy????? where??? All I said was $500m crazy!!!!!! I never meant it to be omg thats a crazy mkt cap, did I say that? No I just never knew it was so large, in my head I thought there was a share consolidation (see the next line) but there never was and thus I was blown away with the fact that they have 2BILLION shares on issue, *that is CRAZY!!!!!*



*If DMM commanded the same mkt cap as SDL (given there projects are somewhat comparable it would be an $8.30 stock* ie $500m Mkt Cap, do you see me saying DMM worth $8.30????? No I am saying $1.50/$2

So yes I am being consistant when I say that at 60c/70c DMM is dirt Cheap

So All I'd ask is

1. Don't mis-quote me to try and make me look bad

2. Stop dancing around it and tell us all what is your prediction for DMM????


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## grace (11 May 2008)

Hi again YT,

Yes, I interpreted that "crazy" meant overvalued, so thus my posts.  Looks like I was not the only one that read it that way.  Guess that argument is over then.  I'm sorry for interpreting wrongly.

I have done a valuation for DMM against BRM that I hold (I will recheck my figures as it could have errors, not saying it doesn't, and always happy to be corrected).  I hold firm that SDL is overvalued compared to a number of oz iron ore stocks, thus why I have never touched it.      

I have put my own personal value on DMM.  It conflicts with yours, but 100 people will have 100 different valuations.

All members have the freedom to offer opinions, and I feel mine is just as worthy as yours.  I may not have the following you have (nor do I want it), but I always try to post as fair as I can.

Good luck with your holding.
Cheers Grace


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## goldmandane (11 May 2008)

Look guys,

I dont see what you are arguing about. To me YT said SDL is overvalued when compared to DMC and DMC therefore looks good in comparison. It is crazy to him that too comparable companies (maybe comparable only in his mind, I dont know I havent looked at DMC properly yet, but nevertheless), can have such a massive difference in market cap, which is fair enough to say.


----------



## Gekko (11 May 2008)

grace said:


> Hi again YT,
> 
> Yes, I interpreted that "crazy" meant overvalued, so thus my posts.  Looks like I was not the only one that read it that way.  Guess that argument is over then.  I'm sorry for interpreting wrongly.
> 
> ...







Grace after reading everything, it does look to me like you were selectively taking his post out of all context.

When you read the other posts he said on SDL, the message is far different then what you posted of his response. It looks like you intentionally selected the quote that suited your argument  best and left the rest out.

Lets just get back to basis and get back to talking about the stock.


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## Datsun Disguise (11 May 2008)

Ahh now I can sleep easy. Good to see the hatchet has been buried - and it seems in no-ones back! : Anyway - it seems that all are agreeing that DMM is a little low right now - if the targets begin to firm up the way they are expected to we should see an sp move above $1.50. This is a feel good story surely! Guys? 

I love forums - so entertaining and this ones got the added bonus of great information and debate!

Grace - your posts were gracious, YT your defence energetic!

Both of you keep it up - peer review is the only way to prove out the info that is out there, if we are forced to prove our statements, and maybe our motives, it only builds a stronger forum.


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## desolator (11 May 2008)

good read, its a good thing that we are seeing arguments about stocks as long as they are in context.. helps those of us come to terms with the money we have put on the table by being better informed!

GL every1!


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## YOUNG_TRADER (11 May 2008)

Guys talking stock fundamentals is one thing, which is all we were doing,

But Grace mis-quoted me by taking a post from the SDL thread by taking 1 of three posts out of context and also bolding parts of a post I hadn't, read the SDL thread and you'll see,

Here are my thoughts so there's no confusion

1. I am impressed by SDL's project

2. I am blown away that they have not consolidated there shares, 2Billion is just CRAZY to me

3. I am impressed by DMM's project

4. I am blown away in the mkt cap difference with DMM being 1/12th of SDL's current Mkt Cap, now such a difference is just crazy


Now Grace comparing DMM to BRM doesn't prove anything, who says BRM is fairly valued, to me BRM still looks cheap, what you need to do to value Magnetite is look at what  the Chinese are paying for Cape Lamberts deposit (ie 100% purchase) and then extrapolate and then discount by whatevr country risk factor you see fit, but I'm sure its more than 5c

I have presented many reasons as to why I think DMM is cheap, you have presented your side, now lets wait 3 months and let the mkts be the judge 

p.s. I will put a proper presentation together tomorrow too tired atm

Hope everyine had a great weekend

p.s.s Goldman nice to see you lurking


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## Nesa (12 May 2008)

YOUNG_TRADER said:


> p.s. I will put a proper presentation together tomorrow too tired atm




I will be looking forward to this. Been reading through quite a few of your posts lately.. keep at the research because you are teaching a lot of people including me which is great. ta


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## bvbfan (12 May 2008)

Haven't really researched DMM but just a quick question for those that have.

Is DMM likely to be chasing a 2billion tonne iron ore discovery?
If so then yes maybe they are undervalued to SDL.

If not, maybe DMM is rightly valued & perhaps SDL is overvalued because of the expectation of holders that they might prove this up.


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## Miner (12 May 2008)

Dear YT 

At the outset thank you very much for your constant thrust to educate many of us including me through your highly valuable research and analysis. 
It does evoke some debate which makes your research information all the better and stands out the value. 

I am not knowledgable and try to gain knowledge from many of you here. I therefore personally feel that people like me are lucky in this forum to have people like you and few others who have been constantly enriching this forum. I tried to send you a PM but your mail box is full (with fan mails of course).

No I am not asking for any money  but the quality of information comes from you and few notable others are far superior in quality and quanity,  I get by paid subscription newsletters  like Eureka, Huntleys, Intelligent Investor, Insider Trader, Wise Owl  and Bell Potter reports. They are some times  worse with so many disclaimers and they were always right when you loose or gain either way and never back up their data when they are challenged.

Keep it up my learned friend and thanks for every thing

Regards


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## adobee (12 May 2008)

Well I am on DMM ...

Whilst I dont buy my stocks based only on YT recommendations I must admit this guy is THE GOODS !!

Have your opion but relax on attacking other peoples.. if you are going to then back it up with a prediction !


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## juw177 (12 May 2008)

140000 shares traded so far today. I wonder how many was a direct result of YT's posts?

And who are the people who sold out? The sell side has bigger parcels than the buy side which suggests the buyers are the small guys.

I think this has a bit more consolidation to go before the next leg up.


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## Scallop (12 May 2008)

Re d_chrome    "Hate to play devils advocate on this one - but there are some disturbingly large impurities of silica in some of the results issued by the company - any thoughts of how this could be the potential reason DMM is currently "undervalued"??"

I agree with most posters here that DMM does appear to have great potential.

One factor that does concern me however is the high level of silica (up to 10%) mentioned by d_chrome.

Does anyone have any information as to whether this will affect the viability of the operation?

Otherwise appears to look good imo.

Regards


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## YOUNG_TRADER (13 May 2008)

Hey guys,

Great to see my original Iron Ore baby YML now BRM getting a $5.50+ price target, who would have thought back when it was 16c even I am blown away at how well the stock has performed


Not tooo many large projects like that left out there in the ASX for mkt caps under a $100m let alone $45m like DMM, I reckon it will only be a matter of time before we get some broker coverage happening,

Will be interesting to reflect on DMM, just as I am now reflecting on YML/BRM

re The silica grades, it means that a straight forward DSO s not possible, the company either needs to upgrade the material via a simple benefication process, or take a large pricing penalty due tot he higher levels of impurities

Either way though guys this one is cheap as chips


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## Go Nuke (13 May 2008)

You dont work as a P/R guy for this company do you YT??

Looks good to me. Ive learnt alot from the reasoning behind _why_ you think this company is currently undervalued...and for that i thank you

Perhaps i will be able to retire at 75 instead of 85 at this rate.

*congrats on your 3500th post too YT*


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## golfmos123 (13 May 2008)

Big move at the end of the day - someone mopping up just over 60K shares (around half daily volume) which has bumped the price up to 78.   Hopefully more good news to come soon as well..... (same person could have bought all those in the low 70's earlier in the day, or maybe they did that too????)


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## ta2693 (13 May 2008)

golfmos123 said:


> Big move at the end of the day - someone mopping up just over 60K shares (around half daily volume) which has bumped the price up to 78.   Hopefully more good news to come soon as well..... (same person could have bought all those in the low 70's earlier in the day, or maybe they did that too????)




I do not think something large is going to happen very soon. The guy who bought at 78 cent is too excited. I do not know why he not pick up DMMO at 52 and 56c which can give him better leverage and better price. 
So, I do not think he is a pro.


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## Gekko (13 May 2008)

ta2693 said:


> I do not think something large is going to happen very soon. The guy who bought at 78 cent is too excited. I do not know why he not pick up DMMO at 52 and 56c which can give him better leverage and better price.
> So, I do not think he is a pro.




"So, I do not think he is a pro". I struggle to remember to a more arrogant comment on an internet forum.
"The guy who bought at 78 cent is too excited." The trend is up, so it may prove to be astute buying. I presume "ta" stands for technical analysis? If so, you should see the chart as showing an uptrend. My chart shows the stock in an uptrend wanting to test $1 again. Not sure what yours shows.


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## YOUNG_TRADER (14 May 2008)

Hmmm interesting looking at the action towards the end and ta and gekko's differing takes on it,


My 2 bob are as follows,

The volume for today was about 130k with nearly half that coming from one order for 60k+ shares AT MARKET at 3.55pm ie just before the close,

So yes maybe it was someone getting too excited, but then I'd sure like to know whats got them excited all of a sudden, the DMM story has slowly but surely been filtering out since last week when the JORC was released

I am very happy with the buying I did at 60c and 70c and heck maybe by tomorrow even my 80c buying will look good,

Also I've come up with a much better way of valuing the Mag potential of DMM,

First what I'm going to do is extrapolate exactly how much the Chinese are about to pay CFE for each tonne of their mag and then apply an appropriate % as an EV


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## Miner (14 May 2008)

YOUNG_TRADER said:


> Hmmm interesting looking at the action towards the end and ta and gekko's differing takes on it,
> 
> 
> My 2 bob are as follows,
> ...





Dear YT

An honest question here when you said you bought DMM at 60 and 70 cents and will buy it at 80 cents. With your skill and caliber I would have expected that you must have bought it plenty  when the price was only 30 cents a month back and would be ready to sell it now. In our March / April stock competition one of the learned friends tipped DMM - you can find out, He is also very knowledgable like you. So if he has made a position at that time you are no less knowledgable so I am sure your millions are waiting to be unloaded now . 

I think novice like me will buy DMM at 70 or 80 cents with a high hope  and still probably make some tiny profit .

Just curious to read this thread's posting tonight  and thought to put this question. Please do not misunderstand me as before my eyes you are  a super hero as far as stock analysis is concerned.

Regards


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## YOUNG_TRADER (14 May 2008)

Mate are you on drugs???

Where do I begin,



Miner said:


> Dear YT
> An honest question here when you said you bought DMM at 60 and 70 cents and will buy it at 80 cents. With your skill and caliber I would have expected that you must have bought it plenty  when the price was only 30 cents a month back and would be ready to sell it now.




Well I can't pick everything now can I, I first bought at 50c - 60c got distracted didn't get my fill then it went into a trading halt, I had only 150k shares from memory

It came out of the trading halt and I bought some at 80c when it fell back and 70c and a lot at 60c,

I have now around 300k shares



Miner said:


> I would have expected that you must have bought it plenty  when the price was only 30 cents a month back and would be ready to sell it now.




I have said time and time again *$1.50-$2 price target for me*, not 70c-80c I have been buying more at these levels, why the hell would I sell?



I sorta take offence to your post mate, whether you intended it or not you didn't ask a question your making an accusation. 



First Grace, now you, getting a bit tired of this,  maybe I should just keep my posts and research to myself

And to think I was about to spend a good 30mins of my time putting together a magnetite valuation


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## Pedron (14 May 2008)

YT,

I'm picking up a little phsycological game going on here. Some people are asking too many questions about how much $ you have in shares etc. Don't tell them, its none of their business. I think this could be turning into a typical Australian tall poppy syndrome. Keep posting your findings because they are extremely informative but don't tell these guys how much you're making as this will breed jealousy with those that are losing money. You may say that all your info is just your honest opinion but there's still alot of lazy people that will not do the research and expect that you are right all the time. Again ignore these people, Thanks and keep it going!


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## adobee (14 May 2008)

Miner said:


> Dear YT
> 
> An honest question here when you said you bought DMM at 60 and 70 cents and will buy it at 80 cents. With your skill and caliber I would have expected that you must have bought it plenty  when the price was only 30 cents a month back and would be ready to sell it now. In our March / April stock competition one of the learned friends tipped DMM - you can find out, He is also very knowledgable like you. So if he has made a position at that time you are no less knowledgable so I am sure your millions are waiting to be unloaded now .
> 
> ...





haha you are on drugs !!!

go through YTs posts and find something that he has spruiked when he has needed to sell out .. Nothing!! This guy is on it and gives the tip before it runs hard.. and if he is selling out usually posts this to see MHL..

Miner you need to BTFUP!


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## YOUNG_TRADER (14 May 2008)

Miner said:


> Dear YT
> 
> An honest question here when you said you bought DMM at 60 and 70 cents and will buy it at 80 cents. With your skill and caliber I would have expected that you must have bought it plenty  when the price was only 30 cents a month back and would be ready to sell it now. In our March / April stock competition one of the learned friends tipped DMM - you can find out, He is also very knowledgable like you. So if he has made a position at that time you are no less knowledgable so I am sure your millions are waiting to be unloaded now .




Why I don't get is he says he wants to ask an honest question and that accuses me of buying millions at 30c because someone else on ASF saw the stock so obviously ie the "MASTER YT" had to have seen it and thus am ready to "unload" my millions at 70c

I'm not going to bother with characters like this and sadly it looks like ASF maybe slipping in terms of some of its members, hope it doesn't go as far as HC

Miner check that chart you ding bat, there was never millions traded for starters and in the last 6 months it looks to have only touched 30c on less than 65k volume from 35c for 1 day, maybe I picked up a secret Million here 


Your a joke and I will take a lot of pleasure in PM'ing you my profits once this hits $1.50 - $2, remember 300k avg 65c-70c, so if it gets to $1.70ish well you do the math

and 1 last thing most of the time when I finally do sell the stocks still go alot higher, ie I always do leave money on the table, YML I sold $1.20/$1.50ish today as BRM $3


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## Miner (14 May 2008)

YOUNG_TRADER said:


> Why I don't get is he says he wants to ask an honest question and that accuses me of buying millions at 30c because someone else on ASF saw the stock so obviously ie the "MASTER YT" had to have seen it and thus am ready to "unload" my millions at 70c
> 
> I'm not going to bother with characters like this and sadly it looks like ASF maybe slipping in terms of some of its members, hope it doesn't go as far as HC
> 
> ...





Dear YT

I read this mail after I read yours in GCR.

First of all thanks a lot for writing few paragraphs responding to my mail.

Please be assured that the 30 cents comment was not directed at you or any one. Honestly I am not in the game of using confrontational posting or  using a bit language you have used. But that is your call and both of have not graduated from the same school . 

I have been always respectful to  you in making my comments and respect your knowledge like I do the same for few others in this forum. 

As a minimum courtesy to this forum and participants,  I urge  that if you do not agree what I said  at least please use your words with the same care as you use the financial figure and terms  . That costs no brokerage nor a single penny my friend. 

No qualms with you or any one. I just expressed myself. 

Good luck and rest assured that we still be in talking through this forum.

Regards


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## YOUNG_TRADER (14 May 2008)

Miner said:


> So if he has made a position at that time you are no less knowledgable so *I am sure your millions are waiting to be unloaded now *.




Mate choose your words more carefully next time and then this can be avoided. You say your not accusing me of anything, well that line I bolded seems to be a pretty big assumption/accusation.

You accused me of something which I took offence to, so perhaps ask about stock fundamentals or discuss stock fundamentals,

I have never had a problem with anyone on ASF, I have been a member and active poster since early 2006.

So please try and not accuse me of things or make assumptions as to what I am doing and everything will be a ok


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## Miner (14 May 2008)

YOUNG_TRADER said:


> Mate choose your words more carefully next time and then this can be avoided. You say your not accusing me of anything, well that line I bolded seems to be a pretty big assumption/accusation.
> 
> You accused me of something which I took offence to, so perhaps ask about stock fundamentals or discuss stock fundamentals,
> 
> ...




Once again Dear YT thanks.
My reference to March / April Stock tipping competition was not you. It was a reference to some one who has not participated in this conversation and it was not you again. I referred just to show how some one could be prudence and it was not a criticism to him either. If you please take some time to refer to the stock tipping competion thread for march /april then you know it. You did not tip for DMM in stock tipping so why reacted my friend? As a matter of fact I was complementing the person who tipped DMM at 30 cents in stock tipping and expect that he would unload his money very wisely now. Once again it was not you - so please do not vent your anger unnecessarily. Your conservation of energy will give us more benefits through your stock analysis as you have been doing for years.

Good luck


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## YOUNG_TRADER (14 May 2008)

lol I think your doing an about face Miner, lol

Just accept what you said mate, its there for everyone to see



Miner said:


> So if he has made a position at that time *you are* no less knowledgable so I am sure *your* millions are waiting to be unloaded now .




That line cannot be interpreted any other way than you refering to me mate, check what the word YOUR means

Anyway mate I could care less,


For those interested I just confirmed DMM only has 15m shares tradeable which means really even a few hundred k holding is a big position in terms of the % tradeable shares


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## alankew (14 May 2008)

Juw you cannot have it all ways,YT would be mad not to buy his own tips before announcing it to ASF(and in turn on HC by copy and paste artists).Perhaps he should tell one and all and then pay the YT premium:This forum (and a lot of the people on it)would be a lot poorer without the likes of YT.Personally think that Miner is possibly not a native English speaker and things came out different to how Miner meant it.What happened there,Juws post deleted?


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## Joe Blow (14 May 2008)

alankew said:


> What happened there,Juws post deleted?




Juw's post was removed. He claimed via PM that it was made in jest but since you are the second person who didn't get it I'd say it wasn't a very successful joke.

Now lets move on with the discussion of DMM shall we?


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## YOUNG_TRADER (14 May 2008)

You guys realise that I put in a **** load of my time and effort into doing these research reports? and I get little no value other than the fact that I enjoy (well at least I used to enjoy) doing it

The fact is most of the time when I pick an undervalued stock which is do for a fundamental re-rating it happens and would have happened regardless, ie MXR the other day, I just try to make sure as many ASF'ers as possible enjoy this ride, but of late this is becoming so much of a headache

Good luck guys I'm off for awhile to make money with my useless research 

Maybe some of these naggers can step up to the plate to fill the void


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## rob7string (14 May 2008)

YT, I have just started my share trading adventure and without your research, opinions and help, I would still be at square 1 with no idea what to do.
I havent yet purchased any stocks, but i read every post you make to help myself understand whats going on and what I should do.
It would be a shame if you didnt continue your research just because of a few negative posts from others.

Either way, what your doing on these forums is fantastic and im sure it helps many many people, especially myself and I thank you for it.


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## tigerboi (14 May 2008)

Gee whats the drama here??YT got set at lower levels than the average punter?thats what its all about isnt it..

If youve got some real good info & you give it to YT in return he will give you the opportunity to be one of the punters to grab some lower than the average joe...

For the record here i got a private tip for DMM at 47c...

if i get permission ill show you what was said...at 47c..i didnt grab any either but its the action that counts...tb


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## Gekko (14 May 2008)

I've been watching this discussion for the side lines and think its just pathetic

YT please pay no head you have again and again shown your research to be top class sure you may not be 100% correct but I have followed your research for some time now and am Well in front and yes MXR is a good case in point,* does everyone forget that YT was harping on about MXR's target size at Narndee for over 1month it may have been even 2months, I don't as I picked up plenty at 13c-14c and made 100%+ in under a month*

Re DMM I have looked at the chart and it looks to me that it was trading thin volume between 50c and 60c with a small dip to 47c 2 days before the trading halt where only 5k shares were bought

I'm guessing YT bought some at 50c-60c but then as he says more at 60c and 70c

But who cares the chart looks to be in a good uptrend and YT's numbers seem reasonable so I think at the end of the day whether your avg price is 60c 65c 70c 75c it will make very litlle difference as the big gains I've found come when the stocks get properly re-rated, ie* it didn't matter whether you had MXR at 13c, 14c or 15c just that you had some for when the re-rating arrived*

I think its a real shame that so much crap is being spoken and the fundamentals are getting lost in the noise


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## Go Nuke (14 May 2008)

Well I thought I would just post a basic chart for those that might read the thread but cant see a chart.

Obvious support lies at 60c.

The 7 and 21 day MA have crossed the 50 day MA, which Im sure Ive read somewhere that alot of institutions go by price action in regards to the 50 day MA.
Good support was also off the 200 MA (though good to see this is below our 60c support now )

Even going by a P&F chart, 80c now shows as resistance so I guess its not too supriseing to see some more profits taken today perhaps.

The only downside I noticed today was that todays price action on a candlestick chart provided a "Bearish Engulfing Patten". It doesn't engulf the shadows (that would just be slightly more bearish) and the prior day wasn't exactly a small candle, but non the less it could indicate a reversal or just a change in direction (sideways I reckon in the case of DMM)

Im enjoying learning about Candlestcik charting, so my predictions will probably be wrong..lol. But I'm having fun trying to add another angle of insight into the stock market.

YT, you already know what I think of your posts, and if I had more time today, I'd try to do the CFE vs DMM sums that you were planning on doing...just to see how close I came to your results.
Though im way out of my young league compared to yourself mate.


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## adobee (14 May 2008)

Miner said:


> Once again Dear YT thanks.
> My reference to March / April Stock tipping competition was not you. It was a reference to some one who has not participated in this conversation and it was not you again. I referred just to show how some one could be prudence and it was not a criticism to him either. If you please take some time to refer to the stock tipping competion thread for march /april then you know it. You did not tip for DMM in stock tipping so why reacted my friend? As a matter of fact I was complementing the person who tipped DMM at 30 cents in stock tipping and expect that he would unload his money very wisely now. Once again it was not you - so please do not vent your anger unnecessarily. Your conservation of energy will give us more benefits through your stock analysis as you have been doing for years.
> 
> Good luck





YT is the goods !!!!!!!!! there is no two ways around it.. untill you can post some fantastic posts and pick shares that rip forget about trying to argue..  You can talk the talk but YT appears to walk the walk..


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## YOUNG_TRADER (14 May 2008)

Hey guys,

Well I certainly recieved alot of PM's from alot of readers, so I can say this research is for you nice people


Something I found very interesting is that of DMM's current 36m Shares, The Executive Director David Summich (who I gather was the architect) holds 6M shares and 3M options

*This means he has 16.7% of the issued capital* and if he converts his options to share 25%+
*
His holdings are ESCROWED * ie he can't do anything with them ie sell until JULY 2009

So his interests are more than aligned with ours given the size of the holding he has in the company, kinda like Michael Ruwane of IRC, its in his best interest to make this project work as those 6M shares + 3m Options at $2+ SP would set him up for life


p.s. Yes Gekko thats really the funny part isn't it, like MXR holding at a 5%-10% discount makes no difference when the eventual re-rating happens. My avg price paid for my holding is 60c - 65c, others could have also  got this level quite easily (in fact I was silly to pay 80c the day it came out of the JORC) but thats hindsight I really thought it would seriously re-rate on the back of that ann


Finally forgetting what I think (as I'm a bum who knows nothing) I take alot of confidence from the fact that the main director holds so many shares and Passport Capital bought in at 90c - $1


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## doctorj (14 May 2008)

I think we've established that Miner was either way out of line or completely misunderstood.  Can we get back to DMC Mining please?


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## tigerboi (14 May 2008)

Go Nuke said:


> Well I thought I would just post a basic chart for those that might read the thread but cant see a chart.
> 
> Obvious support lies at 60c.
> 
> ...




Strange you mention CFE as i was again reading their iron ore preview on the website,i put a big deal on the location & therefore transport capabilities.
there is a comparison of the transport costs of CFE V GBG...16 % diff.

so currently 3 options..
aussie coast,africa,pilbara...my choice

That is why i like these 3...BMY,CFE,ARH..

plus been looking at TTY today,in the nt,railway line straight out to the port.
got cash,looking to double the tonnage in 18 months time..sp.98c cheap(was $1.70 six months ago)

DMM resource looks the goods,they only real problem they got is the railway will have to be upgraded...they are way better alternative than say the midwest magnetite that have to use the quads to get it to port...

rail capacity will become a problem for the pilbara producers looking to get their up to 3mt out behind fmg,rio,bhp's 24/7 operations.

if dmm upgrade their resource as expected then they will be more favoured over the pilbara producers that will suffer set backs due to capacity restraints.

my verdict,if the railway gets upgraded then they are a much better option than the pilbara juniors who may not get their IO to the ship at all...tb


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## grace (14 May 2008)

Just thought I would add some info on another iron ore project on the way in Africa.....

CEMEC (Chinese consortium) outbid Vale in 2006 on the Belinga iron ore deposit in Gabon, Africa.

The Gabonese govt still own a part on the deal, but I'm not sure how much.

The resource is estimated at 1 billion tonne grading +60%.  So far a resource of 500 million tonne of +64%.  All DSO.

The Chinese have committed 3 billion dollars to build 560km of railway, port and power station for this deposit.  Construction started last year on all three.  The power is hydro.  They have already started to dam up for this (which is quite controversial given it surrounds some beautiful waterfalls....government did not even ask for environmental studies.....).

First iron ore was planned for 2010, but I think has been delayed to 2011.

This project is expected to take 5 years from govt approval to first shipment of iron ore.

My question to readers is this, if a new rail line is needed, would it be worth running one for a mainly magnitite project?  If new infrastructure is needed, first ore shipped could be 2013, and not as stated by the company.

Time is a precious thing for all iron ore juniors at the moment.


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## Gekko (14 May 2008)

grace said:


> Just thought I would add some info on another iron ore project on the way in Africa.....
> 
> 
> My question to readers is this, if a new rail line is needed, would it be worth running one for a mainly magnitite project?  If new infrastructure is needed, first ore shipped could be 2013, and not as stated by the company.
> ...





You should email or phone David Sumich with your concerns. He would best answer your question regarding when the company plan on mining first material.

Africa is a mighty big continent thought. Certainly no Tasmania (lol). There is plenty of investment and money to go around.


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## YOUNG_TRADER (15 May 2008)

Re the new rail line perhaps you should ask SDL?

From memory they seem to looking to build $3Billion+ worth of rail and port infrastructure for a comparable project

Re timing yes it is very important and not just for the companies but equally so for the investor, you see I like to get on board an Iron Ore Juniour before all the boxes are ticked off, ie YML at 16c JMS 10c HLX 10c CUL 5c FWL 20c,

You see as these boxes get ticked off the company begins to get re-rated and usually trades at many multiples of me entry ranging from 2x-20x avg'ing 4x

So yes timing is very important, thats why when I see a company with alot of potential trading a ta cheap mkt cap I enter and wait for the re-rating

I'm quite sure you would have dismissed YML/BRM early days but now it appears to be one of your favourites, so I'd ask you who mkaes a bigger return, the preson who had 1M YML + 1M YMLO and sold the YML for an avg 80c and the YMLO 20c-25c or the person who buys YML/BRM at $1+ and holds it for $3 ? ? ?   think you can see were different types of investors


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## grace (15 May 2008)

YOUNG_TRADER said:


> think you can see were different types of investors




I am a fundamental investor, and at the moment I am working through that with DMM.  I agree that it may have plenty of upside.  

Any thoughts why CVRD (Vale) didn't go for this project when they were outbid on the Belinga deposit?  Do they have another project on the go in Africa?


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## YOUNG_TRADER (15 May 2008)

grace said:


> I am a fundamental investor, and at the moment I am working through that with DMM.  I agree that it may have plenty of upside.
> 
> Any thoughts why CVRD (Vale) didn't go for this project when they were outbid on the Belinga deposit?  Do they have another project on the go in Africa?




Who knows, why didn't Vale go for SDL's project? Why didn't SDL go for DMM's project? Why didn't RIO go for all of FMG's current grounds??

I have no idea, hindsight as they say is 20/20

All I know is we're in the mother of all Iron ore booms,

The Fe price just keeps rising and the CHinese are getting very desperate to secure their Fe supplies,

Large projects such as these are sure to attract some form of interest and attention

I see DMM as YML early days, lots of promise but hardly anyone has faith, I think the turning point for YML was when they appointed Wayne Richards as MD

_Highly experienced and accomplished Australian iron ore executive, Wayne Richards, appointed as Yilgarn Mining’s Managing Director.
• Mr Richards brings extensive iron ore experience, including as a *senior executive with BHP Billiton Iron Ore Division*, as well as extensive nickel experience._

I'm pretty sure it was his credentials and connections that really made the mkt take YML seriously as at the time the companies SP was 50c


So I'd say given DMM have the right projects and some of the right people the next step would be in my eye to get some Ex Rio/BHP/Vale Iron Ore boys on board to spearhead the project and the companies transition from a Juniour to an emerging producer


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## YOUNG_TRADER (15 May 2008)

Was DMM's EGM today, anyone get down there?

Would be interested to know if there was a presentation or if it was straight down to business witht he votes etc,

If there was a presentation I'd expect it to be released to ASX tomorrow lunch at the latest,


I've also emailed the company regarding getting Senior Iron Ore people on board to take the company to the next level ala BRM


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## quarky (16 May 2008)

YOUNG_TRADER said:


> I've also emailed the company regarding getting Senior Iron Ore people on board to take the company to the next level ala BRM



That's nice. Investor pro-activeness.

I'm watching this DMM stock and reading up about it too.
But most importantly, learning and soaking up the YOUNG_TRADER braindump.


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## YOUNG_TRADER (16 May 2008)

Hey Quarky,

Yeah it costs nothing to be pro-active so I say why not?

Would have been good to have made it to the AGM but alas time didn't allow it,

Anyhoo good to see DMM close strong at the day high of 82c

Slowly but surely it looks to be getting re-rated


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## Wysiwyg (16 May 2008)

With just over a mill. in the bank they will need more capital soon folks.Yet there are still buyers pushing the price up.I thought i read somewhere Mayoko could be up and running within 2 years so that is encouraging to know. 



> DMC is currently considering a capital raising to fund the next stage of exploration at Mayoko. Details will be disclosed as appropriate.


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## Sean K (17 May 2008)

Breaking 80 very important here, then 1.00/05 next major resistance. Been an excellent run since the retrospective nice dragon fly bottom signal at .35 and breaking the downtrend in early April on a break up through 50. And retrospectively wonder why the hell I didn ´t buy more at that level.


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## alankew (17 May 2008)

Kennas are you meditating or trying to get the message into your head to buy next time there is a dip


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## tigerboi (17 May 2008)

Has anyone got an idea how far it is from mayoko to the port?trying to get a handle on how much DMM would need to pay for a new line,i think they can upgrade the current line very cheaply but i need to know the distance..

It cost fmg $3m per km for 260kms of line,so i would expect it to be much cheaper in africa..tb


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## YOUNG_TRADER (17 May 2008)

TBH best bet would be to just wait for the scoping study,

Pretty sure that will have all the answers,

Op Ex (Operating Expenditure), Cap Ex (Capital Expenditure) 

The Cap Ex should contain a break down for rail/port transport etc and the actual mills/mining

I'm also guessing that a few output scenarios may be assesed etc etc

Remember SDL's Cap Ex is $3B+ from memory SRK's Cap Ex is also $2B-$4B

So really a Cap Ex for everything of $1.5Billion  or less for DMM would be good in my eyes, 

What I'm really hoping is that there's a stage 1 small 0.5Mt p.a. DSO operation (with penalties in price recieved of course for the impurities) but DSO nevertheless that has a Cap Ex of like $50m, this could act as "Bootstrap Funding" to get to Stage 2 the larger 11Mt p.a. + Mag operation


But the scoping study which is due soon should hold all the answers for us


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## TRUST_ME (17 May 2008)

I'm a new boy here trying to rebuild my empire after some set backs, but I've enjoyed the read so far. 

I have over the last few weeks taken a $100k position in DMM so am happily surprised to discover this website. 

I heard expectations of another 800mt of jorg are still to be confirmed which to me means there's lots of potential over the next 6mths. the scoping report will provide positive news I think.

Also, I bought up more options again on Friday and will continue if the price is in the 50+ cent range.

good luck to all on this one, it's a steel.


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## kervz (18 May 2008)

this is a very good artice on DMM, looking foward to the scoping study

http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=52566&sn=Detail


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## dubiousinfo (18 May 2008)

YOUNG_TRADER said:


> I've also emailed the company regarding getting Senior Iron Ore people on board to take the company to the next level ala BRM




DMC are currently looking for a CEO and Exploration Manager through Beilby. Ads were listed on 30 April.



> Chief Executive Officer
> Location: Perth
> 
> Ref No.: 2406
> ...







> Exploration Manager
> Location: Perth
> 
> Ref No.: 2405
> ...


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## YOUNG_TRADER (18 May 2008)

Morning Dubious, yawwwnnnnn lol (lazy Sunday Arvo)

Just checked my email and I got forwarded the same stuff from my Argonaught Securities contact, hmm do we know the same people lol

Yeah it looks like DMM are searching for an Exploration Manager and a CEO, hmmm maybe they heard what I had to say? lol just joking

But on a serious note I am very impressed with this, see once YML/BRM started getting some recognition for what they had in the ground the next obstacle was getting on board some serious Iron ore talent (sorta like SDL too) this can sometimes be difficult because exisiting management might not want to hand over the riegns (Ego's pride etc)

I think the fact that David Summich who owns about 20% or so of the company and is currently in charge, yet is actively seeking more experienced Iron Ore management speaks wonders of his character, he really is doing all he can to get this project going and now realises if he's serious he's gonna need some help

As I said a few days ago, all the company needs now is an Ex BHP/RIO/FMG/CVRD type Iron Ore CEO and Exploration manager and DMM will get re-rated further towrads my price targets of $1.50-$2

Very positive news for me and watching with glee, go David!


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## dubiousinfo (18 May 2008)

YOUNG_TRADER said:


> Just checked my email and I got forwarded the same stuff from my Argonaught Securities contact, hmm do we know the same people lol
> 
> Yeah it looks like DMM are searching for an Exploration Manager and a CEO, hmmm maybe they heard what I had to say? lol just joking




YT
Maybe you should polish up that CV and go for the CEO role. 

Agree this shows good management attitude.


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## YOUNG_TRADER (18 May 2008)

lol yeah Dubbious and Miner or Grace can be PR Rep :


Seriously though it is a very good thing, sometimes what kills companies like these with excellent assets is that Management doesn't realise they must let go and yield the helm to others who are more capable than they are (CTS cough cough).

I have no doubt David Summich is an excellent director and deal maker, but how good an Iron Ore miner is he? Im glad he realises that for DMM to become a serious Iron Ore player and transition from spec explorer to emerging producer serious talent is required (ie BRM SDL)

Getting proven Senior Iron Ore boys on board will IMO re-rate DMM even further aqnd in turn increase share holder value, this will in turn also benfit David as he owns about 20% of the company

My bet is it'll be some Ex Rio or BHP Iron Ore Exec who is well connected


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## Miner (18 May 2008)

YOUNG_TRADER said:


> lol
> yeah Dubbious and *Mine*r or Grace can be PR Rep :
> 
> 
> ...




Thanks YT and I am pleased  to see you still consider me  to be employable when you are the CEO  

I will take the PR Rep for DMM or any other company  so long you are the CEO (you will not be disappointed as I do have experience with FMG, Rio, BHPB and similar)  !! 

But please  continue to  give your tips to ASF for all of us  to make money even when you take the role 

Good to see we are back to normal now . 

Yes, I do agree with you that it is just not alone good ore strength but need an excellent management team to get the production which is more than scoping, PFS, FES and FEED work.


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## Gekko (18 May 2008)

Well observed dubiousinfo They would only be advertising for a new CEO and exploraiton manager if they were at that point of being ready to go to the next stage so its positive indeed. Where were they advertising


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## Max_ob (18 May 2008)

hey. . . 

as a new-bee reading the posts, you guys are great. . . .sharing info and bouncing ideas. . . .  i read somewhere that when starting off in the stockmarket, a mentor makes the experience safer and more enjoyable. . . 

hopefully, i may be able to add a little value to the discussions in the near future. . . . . 


also glad that things seem to be back to the happy normal here. . . . 

i hold only a tiny lot of shares in DMM. . . only due to being capital challenged at this stage. . .


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## ColB (19 May 2008)

Hey YT,  Seeing you, Miner & Grace have taken the top positions in this company, if its any help, I'm bloody good on a pick & shovel.  Anything to see your SP target of $1.50 plus achieved!!  Good work guys! ColB


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## YOUNG_TRADER (19 May 2008)

Looks to be doing the slow steady build,

The chart looks interesting, almost looks like one of them inverted triangles, or wedges or ascending triangle, Kenna you know what I'm on about right?


p.s. Miner I wasn't refering to you in particular, just generally speaking : :


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## adobee (19 May 2008)

Company associated with the director bought another $500k of shares ...  he must be feeling pretty postive about a rerating as well one would guess ..


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## tigerboi (19 May 2008)

Well you all know the harlem shuffle?

All you dmc holders go nuts when ya gets a 2 bagger+....tb

its called....run dmc....walk this way!!

http://www.youtube.com/watch?v=9AKaV911uJA


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## grace (19 May 2008)

adobee said:


> Company associated with the director bought another $500k of shares ...  he must be feeling pretty postive about a rerating as well one would guess ..




Sorry, can you give me more details of asx announcement......I can only find the 1million options issued to Directors for nil consideration.  Thanks in advance.


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## YOUNG_TRADER (19 May 2008)

adobee said:


> Company associated with the director bought another $500k of shares ...  he must be feeling pretty postive about a rerating as well one would guess ..






grace said:


> Sorry, can you give me more details of asx announcement......I can only find the 1million options issued to Directors for nil consideration.  Thanks in advance.




Hey Adobee, I see what Grace see's (gosh did I just say that? : ) seriously though, I too only see the Director Options, is that what you were referring to?

If so they were 1M options approved at the AGM to be given to the directors free, however as they are unlisted options they are worthless unless exercised, and the exercise price is 40c,

I much prefer directors getting unlisted options than big fat salary packages or bonus shares, as their option value is directly linked to the company's share price, its called good Corporate Governance by aligning the interests of directors with us wee old shareholders


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## Miner (20 May 2008)

adobee said:


> Company associated with the director bought another $500k of shares ...  he must be feeling pretty postive about a rerating as well one would guess ..




Hi Adobee

Are you referring to this notice in ASX about Directors exercising conversion of free  options as attached ? There is no $500K purchase shown in Directors Transactions website either

Have a great day


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## YOUNG_TRADER (21 May 2008)

Well was just reading over some DMM ann's and they repeatedly state that the scoping study is due out by May, so that gives them about 7 trading days to get it out, I hope it this week as I have been eagerly waiting for it,

Most important points I will be lookng at are

1. Cap Ex (hopefully broken up into stages and different components)

2. Op Ex (again hopefully broken up ie stage 1 stage 2)

3. Time frames (they say a DSO operation in a couple of years, hopefully they back this up)


Waiting with anticipation

p.s. small volume but still above 80c


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## adobee (21 May 2008)

Sorry my bad i didnt read the announcement correctly just quickly glanced at it .. Appologies to all !


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## YOUNG_TRADER (22 May 2008)

YOUNG_TRADER said:


> Looks to be doing the slow steady build,
> 
> The chart looks interesting, almost looks like one of them inverted triangles, or wedges or ascending triangle, Kenna you know what I'm on about right?




Hey guys following up from my previous newb chart observation I still see this ascending wedge/inverted triangle/rising thinggy, will a chartist please put me out of my misery, whats this formation called that I'm thinking of?


Also I see strong support at 60c, resistance $1.05 

This wedge thing has got me interested, but it could be nothing


Anyway regardless of all this the scoping study should imo cause a second upward surge


I still firmly maintain my *$1.50 - $2 target* based on all my past calculations and extrapolations as well as the fact that *with a comparable project DMM is still trading at 1/10th that of SDL*


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## kenny (22 May 2008)

Nice to see options being exercised.

As a recent reader to this thread; can someone explain why the options are selling at a discount to the heads (exercised)?

Is there something about them that is on the nose compared to the stock?

Cheers,

Kenny


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## Gekko (22 May 2008)

kenny said:


> Nice to see options being exercised.
> 
> As a recent reader to this thread; can someone explain why the options are selling at a discount to the heads (exercised)?
> 
> ...






I can only speak for myself but i failed to realise that there were options until a week later when it was brought up here. Theyre is a wide spread between the buy/sell and the 3000 traded today only make $1500 all up. 

Anyone heard anything with the Scoping Study? Would be nice to have it released soon on the back of EPS's 400% this week. If i only i bought some Cant have them all

Even apart from epsilon, all the iron ore stocks are finding lots of buyers irrespective and many news highs have been broken


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## YOUNG_TRADER (23 May 2008)

Patience Gekko patience,

The mkt is still digesting and coming to terms with the DMM story,

The JORC resource along with the Target backed up was a milestone for the company

The Scoping Study will also be another milestone for the company,

As I said the Most important points I will be lookng at are

*1. Cap Ex (hopefully broken up into stages and different components)

2. Op Ex (again hopefully broken up ie stage 1 stage 2)

3. Time frames (they say a DSO operation in a couple of years, hopefully they back this up)*


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## Go Nuke (23 May 2008)

Actually if the share price gets up a little more we will be looking at a cup and handle formation.

Am i right?? I think i am
Good to see 80c still holding


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## kenny (23 May 2008)

I think the scoping study was meant to be out sometime in May, Gekko. 

Thankfully the lack of news hasn't led to a slide in sp.

The DMMO's have a 30/06/2009 expiry. Exercise price 20c.

I think there's some 24 million DMMO's floating out there. Compared to 35.9 million shares.

YT is the best informed one here (thanks YT!) but here's a recent Intersuisse report that helped answer some of my questions.

Cheers,

Kenny

(Copyright and opinions are Intersuisse's of course)



> DMC Mining Ltd DMM Wednesday, 14 May 2008
> Emerging West African iron ore project
> 
> Recommendation: _Speculative Buy_
> ...


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## YOUNG_TRADER (24 May 2008)

Hey Kenny

Thanks for that,

Can I ask is that the report in full?

Is it the first coverage Intersuisse has ever given DMM? I'd say so as I wasn't aware that anyone was watching the company,

So this is another vote of confidence imo, ticking off the boxes to a full re-rating


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## Gekko (24 May 2008)

Kenny you have got my attention. can you post the full intersuisse report or provide a link.
Did they give a price target? As the shares were at 80c at the time of writing, i presume a target is for 1.40 upwards


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## kenny (24 May 2008)

np YT and Gekko. Glad to be able to contribute.

I got it from Intersuisse but DMC have it on their site now.

http://dmcmining.com.au/uploaddir/newspdf/Pdf_48.pdf

I would recommend you open the link in a new window.

YT, the only part of the report I didn't paste is below. I thought it curious that the report didn't have a price target as Intersuisse normally have some guidance.

Cheers,

Kenny





> Snapshot
> Last Price $0.78
> Market Cap (m) $28.0
> 52 Week High $1.18
> ...


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## Atma (25 May 2008)

bit concerned with this one

my concerns are

-remote from a port (500km)

-rail line is 45 years old, and the tonnage capacity insufficient

-JORC has only 33mT of mineral, and most of the targets are low grade magnetite. Also the haematite average grade is barely Direct ship material(55%). In iron, a few % means a big deal(unless its Pilbara CID)

-The haematite has 10%+ silica. High impurities are bad. 

-Africa is infrastructure poor. this project is years off.


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## Gekko (25 May 2008)

Atma said:


> bit concerned with this one
> 
> my concerns are
> 
> ...






Sounds like you havent done your research (we can forgive your its only your 3rd post)? Let Intersuisse help you. 

Intersuisse say this with regards to rail and infrastructure:

"The project is close to a heavy haulage rail line that was constructed around 45 years ago primarily for the transport of manganese ore to the deep water port at Pointe Noire about 300 km to the south southwest. A recent review by an independent senior project engineer concluded that a new siding will be required to connect to the existing railway approximately 5 to 10 km south of Mayoko and that additional sidings and loops will be required to ensure expedient transport to the coast."

Intersuisse say this with regards to the country:

"The Republic of The Congo is a stable, single party dominant republic and should not be confused with the Democratic Republic of Congo which lies to the south and east. Major oil multinationals such as TOTAL and Chevron Texaco have been operating in the republic uninterrupted for approximately 30 years."


From memory the most recent announcement said they expect to be mining in 2 years. I wouldnt classify that as "years off".

Intersuisse have no relationship with the company so are partial observers. Some would even call their analysts 'experts' and 'professionals'. So they would like to think anyway. Thats what their name badge and salary says any how.


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## YOUNG_TRADER (26 May 2008)

Atma said:


> bit concerned with this one
> 
> my concerns are
> 
> ...




Its fine to have concerns and present the opposite view, unchecked optimism is usually dangerous!

However all I keep saying is everything has to be kept in perspective and my 2 arguments are as follows,

1. A look at YML's/BRM's history shows that many were concerned with the fact that the material was found under 50M's of top soild and had some high levels of impurities, however at 16c YML's mkt cap was so undemanding that I believed regardless given the ptoential the project had the stock warranted a re-rating to a much larger mkt cap (now 20x larger) at this new 20x larger mkt cap some still raise the concerns which have always been valid, howver at the current 20x larger mkt cap the question arises is the risk to reward ratio in favour of the company? I will leave that to be answered by others

2. Following on from the above point, a simple comparison to SDL shows that DMC with a similar project is still trading at 1/10th of SDL's Mkt Cap, sure the project carries risk, the impurities are high and the rail is old, *but the fact remains that DMC with a similar project is still trading at 1/10th of SDL*

So as before I am saying yes I acknowledge the risks however the rewards are imo much much greater and thus warrant the company having a much larger mkt cap and it looks like intersuisse agree's with me


So bottom line, given DMM's undemanding mkt cap the risk to reward ratio is still very much in our favour, but thats just my thoughts


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## Gekko (27 May 2008)

Hey YT

So when did you say that scoping study was due? I reckon its very soon like tomorrow
I say this because I have watched the stock and options closely and today just before the close a largish buy order went through on the DMMO that just ate up a few lines of sellers

What do you think?


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## Atma (27 May 2008)

hmm fair enough guys. But the clues as to how to reduce impurities will be in the scoping study i guess. That'll give us more information. Also interesting are the gravity surveys. They did have some 60% drill hits mixed in with 50-53% drill hits, so came out 55.5% average for 33mT resource. They need to get their resource base towards 100mT. Exploration is always a risk i guess, as most of the historical drills i see on their pictures have 40%+ magnetite ore hits.


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## YOUNG_TRADER (27 May 2008)

ATMA if DMM had exisitng infrastrucutre that was ready to go, rail in-tact, wagons, a 100Mt 60%Fe DSO deposit the Mkt Cap of the company would be $500m+ = $10 undiluted or something

So you have to take it all in context, thas what I always try and say to people, its like they expect a Multi Billion Dollar NPV project to be held in a $40m mkt cap company

The fact is DMM is cheap but hopefully as it has progress on its project ticking off the boxes its mkt cap will accordingly re-rate higher to what will eventually be fair value


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## kenny (27 May 2008)

<sticks his hand up>

I wouldn't mind buying a $10 share for 85c. Of course if the opportunity arose, I'm sure I would be terribly suspicious.

Bring on the scoping study.

Cheers,

Kenny


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## Atma (27 May 2008)

atm its correctly valued for what it has, hence the strong basing pattern around 80c. it would need to find more DSO mineral to justify a higher cap.


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## YOUNG_TRADER (27 May 2008)

Just so we're all clear I'm not saying DMM is worth $10 a share or anything,

What I am saying is that if all the criticsms people have of DMM were non-existant the stocks mkt cap would be $500m+ ie the high levels of impurities, the lower end Fe level (55%) and thus the uncertainty around the Cap Ex and Op Ex then, it is because of these uncertainties and percieved obstacles that the company's mkt cap is cheap and presents an opportunity

p.s. Gekko I didn't see that yesterday, it may be insiders, but more likely I'd think it was the Intersuisse report

Todays volume is good and will help cement 80c as supprt


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## ans25 (27 May 2008)

Yep this stock is going nicely now for the last month or so, steady climbing and looks good in high 80s now, hopefully june also is a good month.

PS- I hold a lot of DMM!


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## Sean K (27 May 2008)

Atma said:


> atm its correctly valued for what it has, hence the strong basing pattern around 80c. it would need to find more DSO mineral to justify a higher cap.



I disagree. I think it is undervalued for it's stage of development and prospectivity. The market is a forward looking beast, and it seems clear from the fundamental analysis presented here that it should have an MC much higher than it has now, it short time. Those waiting to get in when it's rerated to potetntail value abviously missout on the biggest gains that explorers experience, and that is in the 'exploration' stage, which this is in. Once economic resources are identified, companies go through financing to get to production which is normally a significant ebb. This company is still going through the discovery phase IMO, although in the very late stages. It depends on some final drilling, JORCs, and exploration potential as to what level they will reach. Here is a general guide to price movement from discovery to production. And, in regard to being in a strong basing pattern around 80 cents, it highly depends on what time frame you are talking about. Since an obvios bottom at 35, it's marched continuously to the high 80s. I don't see a basis pattern..


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## kenny (27 May 2008)

After watching the sp activity the last few days; can someone explain the possible reasons for why you would wait till the last 30 minutes or so before driving the sp up with small buys? Not EOD price manipulation surely?

Cheers,

Kenny


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## quarky (27 May 2008)

kenny said:


> After watching the sp activity the last few days; can someone explain the possible reasons for why you would wait till the last 30 minutes or so before driving the sp up with small buys? Not EOD price manipulation surely?
> 
> Cheers,
> 
> Kenny




you picked up what i just saw too.
DMM closing at 0.905
that's a big jump from hovering around the 0.80, and it's racing towards $1.00 easily.

i've been watching this for a couple of weeks now, and i think *YOUNG_TRADER* is on the ball.


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## YOUNG_TRADER (27 May 2008)

I still think its Intersuisse clients buying but who knows,

The funny thing is that weird triangle shape chart is still intact, which I think means it should breakout soon, which given the impending scoping study would make sense

Its approaching previos highs too


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## ta2693 (27 May 2008)

kenny said:


> After watching the sp activity the last few days; can someone explain the possible reasons for why you would wait till the last 30 minutes or so before driving the sp up with small buys? Not EOD price manipulation surely?
> 
> Cheers,
> 
> Kenny



DMM not too many ppl are trading it until now. So I am responsible for large part of trading between 90 to 91c. i.e.The ppl bought at 90c and 91c is me. I am adding up my position. I think it is going to fly very soon. Does this solve you puzzle?


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## kenny (28 May 2008)

Thanks for clearing that up, ta2693. I hope many out there follow your example 

YT, I'm content for this slow drift upwards to continue as long as it needs before the breakout but I see your point.

DMMO's always seem tempting except for the lack of liquidity compared to the heads.

Cheers,

Kenny


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## YOUNG_TRADER (28 May 2008)

Looks like the stock is getting ready for a breakout, its amazing how well that weird triangle formation has held up/played out

Very interesting that its on the verge of a breakout given the scoping study is due any day now, very very interesting

Also DMM with its 60m shares fully diluted at 90c = *$54m Mkt Cap*

vs SDL 2Billion shares fully diluted @ 30c = *$600m Mkt Cap*

*DMM is still valued at 1/10th (well 1/11th really) of SDL*

Slow but steady climb


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## ans25 (28 May 2008)

Good to see it hold in low 90s, at this rate looking at the price chart I think that this time next month we may be looking at it in the high 130s (?)

Just taking a stab, although I hate taking one because you never know.


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## jbowman101 (28 May 2008)

nice to see trading volume up.

seems this stock is quite tightly held. with the scoping study on the horizon i'm looking foward to a potential re-rating and them more things too come.... 

i must agree with previous thought - this stock seems undervalued 

runnn baby runnn


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## Sean K (29 May 2008)

ans25 said:


> Good to see it hold in low 90s, at this rate looking at the price chart I think that this time next month we may be looking at it in the high 130s (?)
> 
> Just taking a stab, although I hate taking one because you never know.



I think the only thing you can say from the chart is that it's trending up, but how high is not indicated. I anticipate resistance around the congestion and all time high between .98 and 1.08. So, that area would be my target, for now. On the downside around .80 is probably support. You would think it should correct naturally at some point, and I anticipate this $1.00 ish area. Or, maybe it just keeps going up in a straight line till $150?   LOL.


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## YOUNG_TRADER (29 May 2008)

kennas said:


> I think the only thing you can say from the chart is that it's trending up, but how high is not indicated. I anticipate resistance around the congestion and all time high between .98 and 1.08. So, that area would be my target, for now. On the downside around .80 is probably support. You would think it should correct naturally at some point, and I anticipate this $1.00 ish area. Or, maybe it just keeps going up in a straight line till $150?   LOL.




Hey Kenna $150 it is, at which point we can do a 1 for 1 merger with RIO :

On a serious note if it reaches all time highs pre the scoping study, wowser!!!! and we're not too far off those levels either,

Sell depth is really thining out too

A point of interest: at the close *DMM's Mkt Cap was around $57m 

SDL's was $740m*

You do the math


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## ans25 (29 May 2008)

Yeah I agree YT, if the price can reach abt 115c before the scoping study it would really good, and then when it comes out we can see some serious momentum hopefully.

So please NO SCOPING STUDY...yet!!!


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## ans25 (29 May 2008)

WOW, although given everything is up today, DMM is up to 104c now... go DMM go!
At this rate, Kennas, resistance of 98-108c will be blown to smithereens, and will be seen next week, another stab.. but this is really starting to kick off.
YT when you mention the term re-rating, what exactly do you mean? Are we seeing re-rating now? Or do you think this will come after the scope study?


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## Go Nuke (29 May 2008)

First of all, thank you YT for bringing this stock to my attention (need all the help I can get..lol)

I just read an article in todays "Australian" about SDL.

Perhaps this will rub off and draw some attention to DMM

http://www.theaustralian.news.com.au/story/0,25197,23778134-15023,00.html

Kennas, is it possible that my cup and handle prediction could come true at the current rate?

_For those who want to know what a cup & handle is._

Go DMM


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## TRUST_ME (29 May 2008)

Go nuke, I saw your graph and have been thinking the exact same thing. 

This stock is being hyped a lot, all around the scoping report and I wouldn't be surprised to see the sp dive as people cash in profits and move on in short term.

I still see this stock as long term buy but everything needs to take some time to consolidate before moving to the next level as company and reflect this in it's sp.


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## ans25 (29 May 2008)

No pun intended, but Trust Me, there is no hype to this, it is under valued, and I think we will see the sp of this little beauty in abt 1-3 months


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## YOUNG_TRADER (30 May 2008)

Hey guys,

I've said it from day 1, When we compare DMM's project to SDL's and then realise that DMM trades on a mkt cap of now like 1/12th SDL's surely soemthing is out of whack

Sure SDL's project is superios but 12x superior? I really doubt it

Nuke I'd be interested to see this chart with the "cup and handle" I need all the help I can get with charting 

No matter what happens short term the stock is undervalued on a peer comparison basis and we are in one of the biggest Iron Ore booms ever

p.s. the re-rating is happening as we speak but there is a way to go imo, I wont be happy till we hit $1.50


----------



## Sean K (30 May 2008)

Go Nuke said:


> Kennas, is it possible that my cup and handle prediction could come true at the current rate?
> 
> _For those who want to know what a cup & handle is._
> 
> Go DMM



It's certainly a cup, although a little V shaped, but no handle yet. Maybe it could trade sideways for us and form one.  If that occurs you possibly get a hypothetical target of around $1.60 from the break up of the hypothetical tips of the cup around $1.00...LOL


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## YOUNG_TRADER (30 May 2008)

$1.60 Would be very nice Kenna as it would get it acroos the line of my target 

Now where's that scoping study?

Still can't get over the valuation difference between SDL and DMM


----------



## coladuna (30 May 2008)

Picked up some DMM shares today. It was a little shaky when it fell back down below $1, but bounced back very strongly! Quite impressive considering the market mood today in general. Bring on that scoping study!


----------



## ans25 (30 May 2008)

Hate to act greedy but I say DONT BRING ON THE SCOPING STUDY! 
because the sp is doing so well now, this week alone has DMM has increased by more than 20c, and Im sure once the study comes its going to shoot through the roof, up 10 perc today when most things were in the red, wowee


----------



## Largesse (30 May 2008)

sorry ans25,

but we need that scoping study out asap.

the sooner its released, the soon we'll get coverage, the sooner we get coverage, the sooner we have long term money on the register.

and thats what i want


----------



## Atma (30 May 2008)

the quality of the iron is questionable. it has over 10% Silica content. how can steel mills tolerate this kind of ore. Also its extensions are also subject to exploration risk. i only saw a lot of 40% historical drills banghead. current jorc is 33mT @ 55.5% that is barely DSO grade. also 80% ownership of mine only.


----------



## Sean K (30 May 2008)

Atma said:


> the quality of the iron is questionable. it has over 10% Silica content. how can steel mills tolerate this kind of ore. Also its extensions are also subject to exploration risk. i only saw a lot of 40% historical drills banghead. current jorc is 33mT @ 55.5% that is barely DSO grade. also 80% ownership of mine only.



You better sell Atman.

The silica issue has been raised. It is high, so will need some extra work perhaps. And perhaps the targetted 100+ DSO and 800+ Mag will be enough to make it a mine and give it an appropriate MC relative to it's potential production profile. YT's already done the broad numbers, but maybe you could readjust them with additional costs for beneficiation, or reduced value due to impurities? Would be nice if you value added with some more detailed analysis. 

Cheers,
kennas


----------



## ans25 (31 May 2008)

Hey very interesting to see someone put up a big order for sell last thing in the arvo, and that at market price. Can someone pls explain? Isnt that a bit unusual or do you think its just a quick buck?

BUYERS                        SELLERS 
Orders Quantity Price       Price   Quantity     Orders 
1 2,000 1.035    1            1.105  98,465       1


----------



## adobee (31 May 2008)

ans25 said:


> Hey very interesting to see someone put up a big order for sell last thing in the arvo, and that at market price. Can someone pls explain? Isnt that a bit unusual or do you think its just a quick buck?
> 
> BUYERS                        SELLERS
> Orders Quantity Price       Price   Quantity     Orders
> 1 2,000 1.035    1            1.105  98,465       1





I think that it will probably get pulled before the market opens on monday.. else if it goes through possible some profit taking in the last three weeks they could be up 40% + which isnt bad.. if it gets pulled leaves minimal amount of sellers..


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## YOUNG_TRADER (31 May 2008)

Atma said:


> the quality of the iron is questionable. it has over 10% Silica content. how can steel mills tolerate this kind of ore. Also its extensions are also subject to exploration risk. i only saw a lot of 40% historical drills banghead. current jorc is 33mT @ 55.5% that is barely DSO grade. also 80% ownership of mine only.




As I have said over and over same arguments were raised against YML/BRM when they were 20c due to their deposit being covered by 50m's of top soil and well we all know how that turned out


More over I have repeatedly addressed these points with the response yes impurities are high, yes the grades are just DSO'able but thats why the Mkt Cap is so cheap,

You understand that don't you?

If the deposit was 60% Fe + with no purities along the coast next to a port the mkt cap would be $1Billion, not $60m, can you see that? *The mkt cap is being heavily discounted due to the lower grades and impurities, but I think its too much, 

I firmly believe a mkt cap of $100m minimum is warranted for a project of such scale*

So please without constantly saying the negatives perhaps take into account the fact that the mkt cap is heavily discounted to take into account these factors

If the current mkt cap were say $250m I would be saying SELL SELL SELL risk to reward ratio is not in the stocks favour, but for a $250m mkt cap we'd need an SP of $4.15, so if it ever gets there check and see what I'm saying

I guess thats why I was happy to buy heaps more 60c-65c when it was falling back, because it was too cheap

Sticking to my guns, $1.50 - $2 target

But please DYOR


----------



## Who Dares Wins (31 May 2008)

For what its worth.....

Here is a photo of the Mayoko Police Station. I thought the town must have been reasonably large but was wrong.

I wonder what the company would do for a labour force if they developed the project into a mine, given that the median age of the male population is 16.5 yrs old in the Congo.


----------



## Aargh! (31 May 2008)

Who Dares Wins said:


> For what its worth.....
> 
> Here is a photo of the Mayoko Police Station. I thought the town must have been reasonably large but was wrong.
> 
> I wonder what the company would do for a labour force if they developed the project into a mine, given that the median age of the male population is 16.5 yrs old in the Congo.




Set up a camp to accomodate employees. Not too difficult. 

Should be plenty of 16.5 year old males around to employ.  Just dont let Tania  Zaetta loose on the site


----------



## Gekko (31 May 2008)

ans25 said:


> Hey very interesting to see someone put up a big order for sell last thing in the arvo, and that at market price. Can someone pls explain? Isnt that a bit unusual or do you think its just a quick buck?
> 
> BUYERS                        SELLERS
> Orders Quantity Price       Price   Quantity     Orders
> 1 2,000 1.035    1            1.105  98,465       1






Holders will have known that that order has been there for weeks. I gather that justifies the "can someone pls explain"
Atma's views are well know. He said them at 70 then 80 then 90cents.


----------



## YOUNG_TRADER (31 May 2008)

Aargh! said:


> Set up a camp to accomodate employees. Not too difficult.
> 
> Should be plenty of 16.5 year old males around to employ.  *Just dont let Tania  Zaetta loose on the site*




lol don't be mean, she was doing her bit for the troops 

On a serious note, a work force should not be hard to find in Africa, I mean in that country money talks and well lets be honest you really don't need alot of money to do a lot of talking


p.s. is it just me or does the chart look like we may be about to have a massive breakout? I sorta see that cup shape too, also interesting how the wedge shape/triangle played out


----------



## ans25 (31 May 2008)

Yes YT, that what I really think as well and just intrepreting your graph it sort of backs up what you said in regards to a breakout, that's why I didnt understand your notion of re-rating, because in my mind I think perhaps we may see the real(?) re-rating with it going on a mini MAK or GBG run.
It will be interesting see end of next week where sp is and whether the scope is released is.


----------



## YOUNG_TRADER (1 June 2008)

Hey Atma,

Not sure if you saw my previous post on the fact that DMM's deposit is open along strike but more importantly *at depth*

A majority of the holes ended in mineralisation which makes it very very likely that the deposit continues at depth, see the pics


----------



## tigerboi (2 June 2008)

*Re:NO NEED TO UPGRADE THE RAILWAY!BEING DONE.*

My biggest worry with this has been the railway & lately ive done some number crunching on ago going by road,but i thought i will keep mucking around to see what i can sniff out...found this african mining website but its locked...but got this info.however ill let you guys that hold dmc to go look at this..tb

google this:koreans to build congo railway

looks like dmc will have a new railway go past their site,just gotta get a mou with the korean loggers...reckon that would be easy..

what do you think yt?

http://www.cmkcgroup.com/eng/sub02/sub_0201.php


----------



## YOUNG_TRADER (2 June 2008)

*Re: NO NEED TO UPGRADE THE RAILWAY!BEING DONE.*



tigerboi said:


> My biggest worry with this has been the railway & lately ive done some number crunching on ago going by road,but i thought i will keep mucking around to see what i can sniff out...found this african mining website but its locked...but got this info.however ill let you guys that hold dmc to go look at this..tb
> 
> google this:koreans to build congo railway
> 
> ...




Hey mate,

I'd suspect the Koreans would want something out of it for a shared railway use, offtakes perhaps? which really is a bonus for DMM

Like I said re Rail and Cap Ex, its best to just wait for the scoping study which is due any day now

Interesting as at close 
*DMM's Mkt Cap = $60m*
*SDL's Mkt Cap = $940m*

We're really lagging Talbot and crew 1/15th - 1/16th now


----------



## Wysiwyg (2 June 2008)

Good find that website.They say railway line construction won`t begin for 2 years after the 10/2007 so 2009 some time and will take 15 years.The initial use to start in 4 years. 







.


----------



## d_crome (2 June 2008)

*Re: NO NEED TO UPGRADE THE RAILWAY!BEING DONE.*



YOUNG_TRADER said:


> Hey mate,
> 
> I'd suspect the Koreans would want something out of it for a shared railway use, offtakes perhaps? which really is a bonus for DMM
> 
> ...




YT - mate, given SDL's run and now what looks to be improved infrastructure, do you believe your estimated SP for DMM of 1.50 - 2.00 SP is undervalued now?

I'm really liking the resilience the DMM SP is showing - buyer demand is there and now some larger bodies taking holdings, looks like DMM is preparing for launch.


----------



## Who Dares Wins (2 June 2008)

Yes, very interesting to read the Korean companies website. They are also building a new port near Point Noire.

_This project will be carried out under the principle of separating investment, construction, and management. The new port will be located 40km away from Pointe Noire, which is designated as the Free Trade area, also meaning it is a tax free zone. The goal of building a new port at Madingo Kayes is to overcome the limited capacity for freight passing through port Pointe Noire. _

The construction of the new railway must first undergo a 2 year feasibility study though.

And then on another site it say that American companies will be renovating the existing railway:

_BRAZZAVILLE - U.S. firms hope to renovate a railway linking Congo's capital Brazzaville to the Atlantic, the U.S. envoy said on Friday, days after Korean firms agreed to run a new line to the oil-producing state's interior.

Brazzaville depends heavily on its rail line to the Atlantic oil port of Pointe-Noire, but the 515 km (322-mile) Congo Ocean Railway, known by its French acronym CFCO, has had little serious maintenance since it entered service in 1934._


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## Atma (2 June 2008)

notice the open at depth comment young trader. looks to have certain depth potential. immediate strike potential isn't there though, thats a concern. other targets look like magnetite. I haven't bought in, as i am a bit concerned re: 80% share in project and resource quality risk. MY dad is a chemist he said the high silica is a concern. To bring down those things always comes at a cost, or a loss of ore quantity?


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## Largesse (2 June 2008)

just a source of Who Dare Wins post


```
http://www.rmtbristol.org.uk/2007/04/us_firms_look_to_fix_key_congo.html
```

i only now have one concern for DMM and that is the value of its low quality ore, quantity isnt an issue for me.


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## TERRAIN (3 June 2008)

can someone enlighten me to the new increase in substantial shareholders holdings .. issued yesterday...at nil consideration. Company giving a way free shares ... maybe for consulting work? 

I continue to hold at 75c.


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## quarky (3 June 2008)

many of the resources stocks took a hit today.
so, i doubt it had anything to do with the imminent release of the scoping study.

DMM is at 0.965 after a steady decline over the last few days.

interesting to see how much this flatlines or drops a little before (hopefully) breaking out.


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## kenny (3 June 2008)

Hello Terrain,

The issue of shares to both Tanaka and PMI were revealed in the Notice of Meeting 9/4/2008 and was held 15/5/2008.

Here is a relevant bit but please DYOR.

Cheers,

Kenny



> 1.1 Transaction Agreements
> (a) Shareholders Agreement
> On 7 December 2007 the Company entered into a Shareholders
> Agreement in respect of a company to be incorporated in the Republic of
> ...


----------



## coladuna (3 June 2008)

what a hammering DMM has taken today. 
Just my luck. Right after I have taken a position, it gets smashed. 
Is this just a case of investors overreacting to US lead?


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## alankew (3 June 2008)

Has been speculated on HC that it could be T3 sells which seems quite probable and as the report is apparently overdue its a case of pay up or sell.Also speculation that report could be out late JuneI will have no fingernails by then


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## Go Nuke (3 June 2008)

alankew said:


> Has been speculated on HC that it could be T3 sells which seems quite probable and as the report is apparently overdue its a case of pay up or sell.Also speculation that report could be out late JuneI will have no fingernails by then




Um, im sorry but I dont understand any of that comment. Could you please explain?

T3?

Either way yeah it got hammered in a bad way today.
On the up side, this might be the start of the "handle"


----------



## j4mesa (3 June 2008)

just called the company and they mentioned that it is going to be released in the next 2 weeks as there is a delay


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## adobee (3 June 2008)

Took a beating but on the up side it was only $300k worth of shares trades and still up 20% from a few weeks ago.. I am not to worried about this.. perhaps one person decided to sell out and then a few stop losses got triggered.. oh and % of this $300k was XT too


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## juw177 (3 June 2008)

Go Nuke said:


> Um, im sorry but I dont understand any of that comment. Could you please explain?
> 
> T3?




It is HC lingo for explaining a stock that has taken a beating. Just substitute for another meaningless ramp such as
-"day traders are exiting"
-"this is just irrational panic selling"
-"I topped up".


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## alankew (3 June 2008)

Go Nuke T3 is when a person buys one day with the expectation that some impending news(maybe not in this case though!)and hopes to sell before they actually have to pay for the shares so hopefully they just collect the profit.If the announcement doesnt eventuate they either pay up(if they have the money)or take the loss which might be what has happenend here.Not knocking anyone here but if you look on other boards there is a full blown cheerleader squad for this stock


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## Who Dares Wins (3 June 2008)

> =Go Nuke
> 
> Either way yeah it got hammered in a bad way today.
> On the up side, this might be the start of the "handle"




Hell man, down at 87.5 cents last time I looked with 10 minutes to go - I hope this is the far end of the handle!

But its just ridiculous really, I mean what happened to precipitate this? This stock is down the most today by far out of my entire watchlist for no apparent reason. As others stated already I think its just a combination of irrational panic and stop losses.

As for the announcement, well they seem to be late more often than not these days no matter what company. It doesnt worry me too much having to wait a little longer. 

Wish I had some cash.


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## ans25 (3 June 2008)

Yeah me too I wish i bought in the afternoon, I bought at around 95c... eeesh...oh well i continue to hold big numbers and yeah it looks like the handle is taking shape!

Interesting to see how much this goes to come around announcement time.


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## TRUST_ME (3 June 2008)

look can everyone just chill out. 

a lot of stocks got hammered today, DMM is just one of them, it can't keep going up every bloody day.

the question you need to be asking is whether you still like the company story and believe in the stock?

I think this represents a great opportunity to buy some more stock, the lower it gets the better it becomes especially when the scoping report comes ou, the stock will rall again.

have some faith people or cut your holding and let me take the money.


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## YOUNG_TRADER (3 June 2008)

Go Nuke said:


> On the up side, this might be the start of the "handle"




Mate would really aprreciate if you could keep us all informed about this developing up formation etc etc

A couple of chart/tech questions
Whats the target? 
How should it play out? ie how should the handle form etc

Are these very high probability formations?

Thanks


----------



## ta2693 (3 June 2008)

I think tomorrow will bounce back fiercely. the 33mt DSO is there. I can not see any reason what should I worry?


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## Sean K (3 June 2008)

A slight correction was a little obvious at these levels.


kennas said:


> I anticipate resistance around the congestion and all time high between .98 and 1.08. So, that area would be my target, for now. On the downside around .80 is probably support. You would think it should correct naturally at some point, and I anticipate this $1.00 ish area.






YOUNG_TRADER said:


> Mate would really aprreciate if you could keep us all informed about this developing up formation etc etc
> 
> A couple of chart/tech questions
> Whats the target?
> ...



Hey LN, That cup might eventuate, but anything could happen really from here. 



kennas said:


> It's certainly a cup, although a little V shaped, but no handle yet. Maybe it could trade sideways for us and form one.  If that occurs you possibly get a hypothetical target of around $1.60 from the break up of the hypothetical tips of the cup around $1.00...LOL




Still undervalued by all accounts, just going to do the zig zag thing like every other stock on the ASX!


----------



## juw177 (3 June 2008)

YOUNG_TRADER said:


> A couple of chart/tech questions




The last few days have seen an increase in volume which suggests a blow off, which was confirmed by today price action.

That said, I am quite bullish about today's action. Today's volume was high but not extremely high. The main thing here is that the period with the most activity was towards the end of the day when there was a strong bounce off the 50% retracement level of the triangle formation ($0.60 - $1.10). This was also when I bought in 

If this level holds, we will be looking at a retest of the highs.


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## d_crome (4 June 2008)

I'm amazed just how much this has dropped to all that I can attribute to a delay in a market announcement - just goes to show how day traders really do read these forums!!

With SDL hitting highs, you'd figure that DMM would have continued on an upward trend regardless of the scoping study.

There truly are some impatient folk out there!


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## YOUNG_TRADER (4 June 2008)

A few people have pm'd me asking ym thoughts on DMM, so to save time instead of replying individually I am just going to reply via the thread (hope thats ok guys)


I think D Chrome has hit this one on the head, its impatience, pure impatience

I highly doubt its anything else

Go throught the thread and read the comparisons I have made to SDL, then look at the mkt cap differences and ask yourself is this right? or is it in fact "mis-priced"


----------



## Sean K (4 June 2008)

YOUNG_TRADER said:


> I think D Chrome has hit this one on the head, its impatience, pure impatience



I would like to add pure market psychology. Nothing goes straight up to a target fair value price!! Fear and greed rule in the market. Stocks ALWAYS over and under shoot true value. Accept it, and take advantage of it.


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## jbowman101 (4 June 2008)

my two cents….

fundamentally I believe this stock is undervalued. however, given current market conditions and the delayed release of the scoping study this turn of events was highly probable. 

last week there was a significant amount of speculation on the release of DMM’s scoping study, which saw the SP rally around thirty odd percent. e.g. late Friday arvo the SP flew on people trying to buy up what they could anticipating the release of the scoping study this week.

Currently demand has thinned and supply increased due to people losing faith/panicking and selling out. On top of this all the T3 traders who took positions last week in anticipation of the scoping study being announced have fled, causing a serious fall in SP.

During the next week or so, up until around the time the scoping study should be released I don't think the SP will move much from around the .78 - .88 region.

I still hold my position in this company and I believe the next 3 to 4 months is going to be some happy times.


----------



## d_crome (4 June 2008)

kennas said:


> I would like to add pure market psychology. Nothing goes straight up to a target fair value price!! Fear and greed rule in the market. Stocks ALWAYS over and under shoot true value. Accept it, and take advantage of it.




Kennas - always agree with that sentiment, buy the rumor sell the fact.  However in this case the SP of DMM rose rapidly in anticipation of an announcement - which is understandable (yet sad as the value of DMM as YT indicates is much higher than the SP is indicative of) - yet as no announcement has surfaced, the sp has sunk as the impatient left.

The problem there is my level of rationality would imply that why would somebody take a 10-15% LOSS when all they need to do is wait a week or two.  I guess I can't fathom that level of irrationality.

Obviously when the announcement is due, then the standard trade in and out would occur; as Kenna's acutely stated - it's all about the $


----------



## Sean K (4 June 2008)

d_crome said:


> Kennas - always agree with that sentiment, buy the rumor sell the fact.  However in this case the SP of DMM rose rapidly in anticipation of an announcement - which is understandable (yet sad as the value of DMM as YT indicates is much higher than the SP is indicative of) - yet as no announcement has surfaced, the sp has sunk as the impatient left.
> 
> The problem there is my level of rationality would imply that why would somebody take a 10-15% LOSS when all they need to do is wait a week or two.  I guess I can't fathom that level of irrationality.
> 
> Obviously when the announcement is due, then the standard trade in and out would occur; as Kenna's acutely stated - it's all about the $



d-c, I know no greater source of fear and lust, than the possession of money! It somehow drives us to do the most incredibly courageous and stupid things that it amazes me. It's like it's the quality of your personality in the western materialistc world, or something.... Really troubling actually, but almost the sum of the animal species.

Unless the funnies hanven't changed, we are just going through the normal cycle. Enjoy it.


----------



## Largesse (4 June 2008)

"The problem there is my level of rationality would imply that why would somebody take a 10-15% LOSS when all they need to do is wait a week or two."

Alot of people purchase stock on borrowed money. i know for fact Commsec allows me to purchase stock and not have to settle until 3 days later, better known as T+3 trading. I'm sure many broking houses offer similar sort of deals.

Thus,
People expected an ANN around end of May 2008, purchased stock on T+3 in hope of making gains on borrowed money, ANN didn't come, decision time (sell or settle), if dont have funds to settle you have to sell.

And thus we have our retail exodus on late ANN. If you study the intra-day trading its pretty obvious. Lots of small sells


----------



## quarky (4 June 2008)

d_crome]just goes to show how day traders really do read these forums!![/quote]
maybe make these forums private? open only to account holders rather than the public who can read them?



[QUOTE=kennas said:


> d-c, I know no greater source of fear and lust, than the possession of money!



the possession of beautiful women.
(presuming you're all male here) :

basically it comes down to human desire and how strong it is.
the desire to own something, and the desire of someone else to own what you own, from the feelings of inadequacy (which is what everyone goes through)


----------



## jbowman101 (4 June 2008)

i love this forum....

look at dmm now....


demand has ramped up and somehow we've turned around a 4% loss to a 4% gain in the day.

investor's are highly irrational sometimes.

i'm looking foward to 'zig-zag' SP fluctuaitons in the near future


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## Sean K (4 June 2008)

quarky said:


> the possession of beautiful women.
> (presuming you're all male here) :



No, you need money to possess a beautiful women quarky. Or be able to play music!  

Why would Prospector's avatar be a beautiful women if otherwise?


----------



## YOUNG_TRADER (4 June 2008)

quarky said:


> *the possession of beautiful women.*
> (presuming you're all male here) :
> 
> basically it comes down to human desire and how strong it is.
> the desire to own something, and the desire of someone else to own what you own, from the feelings of inadequacy (which is what everyone goes through)




I will give a big YES to that,

I could care less about money, but women hooo ahhhhh!!! cars are but a very distant 2nd place and I do love my cars,


----------



## Sean K (4 June 2008)

YOUNG_TRADER said:


> I will give a big YES to that,
> 
> I could care less about money, but women hooo ahhhhh!!! cars are but a very distant 2nd place and I do love my cars,



Hmmmm, perhaps there's a calculated decision to be made about what a women wants in this day and age. Do they want a man of means, a man of performance, a man of control, a man of humour, a man who 'cares', a man of DMM shares, or what??

LN, It's up for discussion about the women v cars v money issue!! 

In this day and age, how we make the chick feel good, is terribly confusing.


----------



## Romeo75 (4 June 2008)

Treat 'em mean and keep 'em keen.  Just kidding, honestly.  Every woman is different.  Some want money, others want performance, and there are those who crave emotions & feelings (urghh!!!).  How is a guy supposed to figure them out?  It's a lottery I tell you.


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## senorita (4 June 2008)

kennas said:


> a man of DMM shares, or what??
> 
> In this day and age, how we make the chick feel good, is terribly confusing.




hahaha a man of DMM shares! lol maybe if DMM reaches RIO proportions then YES! 

Being a woman I'm taking offence to much of the discussion taking place here. But Kennas take comfort in the fact that some men are equally confusing.


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## Go Nuke (4 June 2008)

Guys, that song hit the nail on the head....

_"Girls don't like boys, girls like cars and moonnneyyy"_

lol.
YT, Kennas is far better at price predictions from charting than I am (Even though I'm sure he might disagree with that statement )

But i'll do some more research on the cup and handle thing for u if i have time this evening.


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## ans25 (4 June 2008)

Getting a bit of topic, or is this to sort of drown the sorrows out...
I still think this stock can reach 130-140c by the end of this month simply because these days we are getting quite a margin between the lows and highs, I think at some stage today it hit 91.5c and then went back down to 85c. Last week we hit 110 as well, I think we may see ppl start to jump on the bandwagon before the announcement as well, I read somewhere it was still abt 2 weeks away.

Anyways Im still holding my stash on this, unfortuntely the world is full of impatient ppl, you cant blame them.... but the thing that really interests me is the cup and handle formation it is taking.


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## YOUNG_TRADER (5 June 2008)

tick tock tick tock

C'mon DMM wheres the scoping study?

I can see a few on the registry getting impatient

tick tock tick tock :

p.s. hows the "Cup n Handle" coming along gents?


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## Go Nuke (5 June 2008)

Hey all.

The cup and handles in my opinion is looking really good.
I say this becasue of the impending scoping study thats coming, which will help with the pattern.

From what ive found, a price target for a C&H is the distance from the top of the right peak to the bottom of the cup.

In DMM case using a conservative base of the cup (its kind of hard to tell with the thin trading) I have said *45c* as a bottom and *$1.105* as the last high. This would give us an approximate target of *$1.76*

After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward, other times just a short pullback. The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. 

Again in DMM's case this target would be *73.5c*

Idealy the handle should only last about _*1 - 4 weeks*_ (This fits in nicely with the scoping study )
 And lastly, there should be an increase in volume on the breakout about *$1.105* in this case

Buyer coming back already by the looks.
Great considering the day


----------



## ans25 (5 June 2008)

Lets hope we have seen the low of 85c of yesterday, a good day today considering everything else was in the red.

A high of 91 and Im happy with that... I will be very happy if DMM closes for the weekend on 95c and then looking forward to next week we can reach the high of 110s that we saw before (and upwards!)

I think though we all need to relax a bit and take day by day and not jump to hasty predictions, lets first see the 110 mark being reached again and then Ill be really excited!

Good Luck to All.... Happy times ahead


----------



## ColB (5 June 2008)

Hey Ans, I want to share your optimism and having read this thread and based on its recent price activity I've just made a  second purchase. I originally bought in at 0.74c on 12/5 and bought 12000 this morning at .086c.

I'm happy to see it close at 091c but there was only one purchase at that price and only for $1400 with the average buy at 86-87c so there wasn't really much support for it other than to say it didn't go backwards which is a good sign.

Can't wait for the next ann!!  Regards CB


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## Largesse (7 June 2008)

Gents,

Emailed DMC Investor services to ascertain what was going on with the Scoping report.
Wasn't happy with the response. So i emailed GRD aswell.

Got this back last night:


----------



## YOUNG_TRADER (9 June 2008)

Nice work Largesse

Hopefully the US can bounce tonight, else if the good news comes out tomorrow it will fall on deaf ears as there will be a blood bath on the general mkts 

Will be interesting to see what happens, what bad luck timing for us DMM'ers though   Damn you Mr Market!


----------



## ans25 (9 June 2008)

I fully agree with you YT, me hopes ann doesnt come out tomm, from the looks of things this baby is perhaps not going to get to that 1.50 mark for a while at least


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## Miner (9 June 2008)

All are in good hope that DJ will be high tonight

With oil price further surged by $11 to day, increased unemployment rate published in US, it is probably more than likely the DJ will lower down (I do not wish personally but the numbers probably already there on the wall) means our ASX will start with a high bear trend tomorrow morning

Let us hope what I said above be proved as  wrong

Cheers


----------



## YOUNG_TRADER (10 June 2008)

Well I liked todays ann,

It shows DMM are serious about Mayoko and aren't going to waste their time or more importantly limited funding on other non core projects


DMM like some others are doing well considering


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## Largesse (10 June 2008)

as indicated in my screen dump, only a short matter of time till we have our scoping study.
then we decide whether this is a hold or a scalp


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## Go Nuke (10 June 2008)

Well the DJ didn't bounce last night, but so far thats good news for us holders.

I reckon it should be in for a possible 100+ point day this week sometime, as i reckon it must have left some stocks looking pretty cheap now.

Fingers crossed that DMC make their ann on a 100+ day


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## kenny (10 June 2008)

Can anyone shed some light as to the identity of Allegra Minerals, especially since DMM will be a pre-IPO holder now?

Cheers,

Kenny

A quick ASIC search shows this:


> Extracted from ASIC's database at AEST 15:57:04 on 10/06/2008
> Name 	ALLEGRA MINERALS LIMITED
> ACN
> 125 039 125
> ...


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## Largesse (10 June 2008)

i have contacted DMC Investor services re: finding out some more about this Allegra mob. 
Will post up response when recieved.


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## YOUNG_TRADER (11 June 2008)

Looks like more impatient holders are putting pressure on the DMM share price,


These guys need to hurry up and get that scoping study out,

The mkt really needs to see the Cap Ex figures and Op Ex figures

waiting waiting


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## golfmos123 (11 June 2008)

Agreed YT,

But don't forget, the longer term goal is to have the money from those impatient traders in my pocket and not theirs!!  Slow and steady can win the race....

I also agree with other posters earlier, it would be lovely if the scoping study came out on a strong green ink day....

Interesting too that DMM has held its ground in the last week or so when other iron ore companies have retreated somewhat - esp GBG and SDL (although SDL appears to be recovering a little in the last 2 days).


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## ans25 (11 June 2008)

Today was a pretty stagnant day, I really thought we may get in the 90s but there are a some impatience out there which is sort of restricting from going up too much, interesting to see where this thing is at in abt 2 weeks from now


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## Gekko (11 June 2008)

I phoned the company today and was told that the report will be out be the end of the week. The impression given was that they have received it from the consultants and are purely formating it, reading over it and converting it to their own letterhead.


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## Miner (11 June 2008)

Gekko said:


> I phoned the company today and was told that the report will be out be the end of the week. The impression given was that they have received it from the consultants and are purely formating it, reading over it and converting it to their own letterhead.





If I can suggest that the time taken in formatting will be the time for enthusiastics from the company to play ball in the share market too, 

Where leaks come out from Premier office in WA so how could we say an open environment photocopier and support staff will not read the content and act on them. They need not to be directors and so no offence can be taken.
It is the most real part of the world

Notwithstanding so long they keep buying DMM and make others happy with a bloody good scoping study report in the market makes real sense

good luck to you all and reading so many good postings from experts it is time for me to put some cents to buy DMM tomorrow
:sheep:


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## adobee (12 June 2008)

Gekko said:


> I phoned the company today and was told that the report will be out be the end of the week. The impression given was that they have received it from the consultants and are purely formating it, reading over it and converting it to their own letterhead.




So we are expecting today or tomorrow.. hopefully the market turns around abit tomorrow if they release it then.. is anyone actually expecting the stock to run when this comes out or just for some brokers etc to actually start taking notice once they have read through.. ie some affect three to four weeks on... ?


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## jbowman101 (12 June 2008)

this is getting out of hand, market is going crazy...

check out bnb, i would be a sad person to own those shares.


quite honestly i can't see the scoping study having the full effect i would have expected 2 weeks ago. due to market conditions i think the study (due tomorrow ) will help maintain support for DMM but i can't see it immediately creating a run, unless it looks unbelievable in which case i still doubt it will rally hard. 



just my 2 cents....


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## TRUST_ME (12 June 2008)

heard the scoping report has been delayed yet again, and looks like it will take another 2 weeks. Still hearing all is positive but I think we will see more weakness in share price as a result.

just another buying opportunity.


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## Largesse (12 June 2008)

TRUST_ME said:


> heard the scoping report has been delayed yet again, and looks like it will take another 2 weeks. Still hearing all is positive but I think we will see more weakness in share price as a result.
> 
> just another buying opportunity.




where'd you hear this from champ?
DRC are indicating to me that its a done deal already.
what is your source?


----------



## jbowman101 (12 June 2008)

Gekko said:


> I phoned the company today and was told that the report will be out be the end of the week. The impression given was that they have received it from the consultants and are purely formating it, reading over it and converting it to their own letterhead.




assuming this is correct i can't see why there would be another 2 week delay on the scoping study. Unless the company is holding it back and waiting for a more "appropriate" time to release....


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## d_crome (13 June 2008)

This market is an unforgiving beast - especially on the spec end of town where DMM currently dwells.

Investors in the spec market not only want but EXPECT a 100% return on a days investment - none have any idea of what it means to be "patient".

Must be signs of the ADD generation.

Anyway - this "formatting" excuse I've heard before - namely with MXR and their Sellheim announcement - which was gold - as in it was that bad it was funny.

If DMM don't pull their finger out this SP is headed south, not because the fundamentals are bad, but because the SP rose from buyers expecting immediate results.

For those on this thread not on Riddlin these times present some good buying opportunities.



Again - DYOR - I'm no financial guru...I'm the G.W Bush of financial stupidity!


----------



## ans25 (13 June 2008)

Hindsight is great isnt it?

Looking back now its safe to say that scoping study should have been released abt 2 weeks ago when share price had the momentum. 'Who knows what the real reason is for delaying it, I doubt very much it would be just mere grammar errors/editing etc

It's an impatient world, and I have been watching the price very closely for the last week or so (6 consecutive days we've had a -ve), it seems to me it holds pretty steady for the majority of the day and then very late in the afternoon we achieve the low, its very frustrating.

However saying all this Im more than ever willing to be patient and will continue to hold this.

Who hear thinks this baby will get out the doldrums and get past that 80c-90c mark in the next 1 month?

The graph is really taking form of that coffee mug, minus the sky rocket, but hopefully we will see that soon in the future (past $1.30(?))

Keep it real, keep the patience up fellow DMM'ers

Have a nice weekend


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## YOUNG_TRADER (16 June 2008)

Ans,

As I've told a few who have pm'd me,

The fundamentals for DMM have not changed,

Fact: we are in the largest Iron Ore boom ever from what I read

Fact: DMM has a very large DSO and Mag project in Africa with readily available (although perhaps requring some upgrades) infrastructure

Fact: DMM trades on a mkt cap equivalent to 1/16ht that of SDL even when there projects are comparable some what in terms of size and location (note arguably SDL's is superios, but 16x superios I highly doubt, perhaps 2x as good)


I will hold until this stock reaches what I believe to be its fair value


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## d_crome (16 June 2008)

Right with you YT mate.

Anybody who is in regular contact with management have any updates in regards to the study release date?

Per news on another forum, there looks to be a DMM roadshow with the insto's in progress, so hopefully this means management is alerting the larger investors for what we could be in store for...

Holding in anticipation! 

AGAIN - DYOR - just my opinions not facts...


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## Romeo75 (16 June 2008)

I spoke to their investor relations manager the other day.  He said report will be released in the next few weeks.  He assured me the delay was from the lab people (GRD???). He couldn't say any more than that. I'll be holding until SS is released.


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## YOUNG_TRADER (17 June 2008)

tick tock tick tock,

The liquidity/volume has really dried up = volatility, we're seeing 10%+ swings on little volume

I wonder what else the company is up to, they disposed of their Aussie assets to focus on African Iron ore,

I'd expcet a roadshow, broker/insto type on the back of the scoping study


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## TRUST_ME (17 June 2008)

I've heard the company was roadshowing in melbourne last week and are doing the same again this week!

YT you have excellent instincts mate...or you already new this ?

I've run out of money otherwise I'd be buying another $100k in right now. IMO the stock will be double current price by xmas due to SS and increased JORG resource announcements over next 6mths. no brainer.


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## YOUNG_TRADER (17 June 2008)

TRUST_ME said:


> I've heard the company was roadshowing in melbourne last week and are doing the same again this week!
> 
> YT you have excellent instincts mate...or you already new this ?
> 
> I've run out of money otherwise I'd be buying another $100k in right now. IMO the stock will be double current price by xmas due to SS and increased JORG resource announcements over next 6mths. no brainer.




Hey "Trustme" I was guessing as the JORC and the Scoping Study are significant milestones and when I've spoken to the company I have siad that they really need to get broker support and more presentations going because the main thing against DMM is the fact the mkt doesn't know

So a couple of questions, how exactly did you know they were roadshowing? and to who? funds, insto's or brokers?

p.s.  up 15% weeeeeee lol :


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## alankew (17 June 2008)

YT the roadshow has been discussed elsewhere-if I say the name i will get my hand slapped."Rumour" was that it was being shown to some long term investors this last couple of days then later this week/next week(seems to be a recurring theme with DMM)roadshow proper starts.Before i get shouted down it is a rumour posted elsewhere(think the poster is Franco),just answering YTs question


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## Go Nuke (17 June 2008)

Other than the fact the volume was low today, it was a pretty bullish sign I thought.

A _"Bullish Belt Hold Line_ in fact which also engulfed the previous 3 days trading!

A belt hold line isn't THAT a strong indicator, but I figured combined with the engulfing pattern it might be more so

Next day or 2 may help with a direction, though as you said YT it isn't taking much to make the sp swing up and down much.

Goodluck all.

ps..the Cup and handle is still in play at least


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## ans25 (17 June 2008)

Well you guys can thank yours truly for making that share price rise from 83c to 87.5c in the afternoon, I felt that I wanted to top up more after selling out other specs im involved in.

Im in for the long run (unless of course the scoping study is a bomb!)


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## Go Nuke (19 June 2008)

ans25 said:


> Well you guys can thank yours truly for making that share price rise from 83c to 87.5c in the afternoon, I felt that I wanted to top up more after selling out other specs im involved in.
> 
> Im in for the long run (unless of course the scoping study is a bomb!)




LOL.

So was it also you who put through that [/B]HUGE[/B] crosstrade of 1 share through too today??

Gee should see the sp start to pick up with that ann due any day now


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## AussiePaul72 (20 June 2008)

Well the wait is almost over!! DMM has gone into a trading halt this evening - strange time to announce it but anyway. In their request for a trading halt they mention that it is pending the release of the scoping study. DMM will remain in pre-open until the announcement is released or the commencement of trading on Wed 25 June.
I've been in and out of DMM and did quite well but am currently on the sidelines watching. Was hoping it might dip back into the mid 70's again but now we may never see the mid 70's again if the scoping study is positive.
Doesn't seem as though their has been any leaks as there was no big moves in SP leading up to the trading halt today and also only 13 buyers for just over 80,000 shares on the BUY side and 29 sellers for over 285,000 shares on the SELL side.
Hopefully the news is good ...... Good luck to all holders!


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## YOUNG_TRADER (20 June 2008)

Hey Paul,

Funny that I was just about to comment that the only ann's we see these days from DMM are option conversions

Well looks like the scoping study is here,

Bring on a low cap ex operation with high margins and short lead time to production, c'mon baby don't let me down "Papa needs a new pair of shoes" :


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## Largesse (20 June 2008)

Gents,

i'm not suggesting the dreaded R word here but i think we should all be doing our best to 'get the word out' regarding DMC should the study come back positive.

Informed, unexaggerated info needs to be spread to the masses by the masses as the company seems reluctant to do so.

Target price for me is 2.00+ within the month. on the options.

regards

L


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## bowser (20 June 2008)

Lets hold our breath - I suppose the fact they haven't released the report on a friday after closing time is positive..


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## alankew (21 June 2008)

Not sure about the timing of this release,hope it comes back on Wednesday not before after the latest rout on the Dow


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## ans25 (21 June 2008)

Whoa $2 by the end of this month?

That is high hopes, LoL

I was thinking short term around $1.2 mark and long term perhaps $2-2.5, but thats too far off, I would rather see the scoping report first up.

I dont think it makes too much of a diff when its released, I feel that DMM has not advertised to the fullest but lets all wait and see.

Exciting time ahead.


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## Go Nuke (21 June 2008)

alankew said:


> Not sure about the timing of this release,hope it comes back on Wednesday not before after the latest rout on the Dow




They are my thoughts exactly mate 

I hope they dont come out of the TH till tuesday or Wed whcih will hopefully be a better days


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## blehgg (23 June 2008)

Trading halt, in preparation of Mayoko Project Scoping Study Report 

Release date 25th Wednesday..

Probably a good thing halting today  Wont take the hit from US slump ~ 

Bad thing for me ~ I don't get to top up


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## Duckman#72 (23 June 2008)

There was a positive article in The Australian today under the "Mining Week" wrap-up.

I'll paraphrase........."at a rate of 11 million tonnes a year, operating costs will drop to $22 a tonne - giving a potential annual revenue of $1.15 billion based on current spot prices. DMC also believes that existing rail facilities near the project are capable of transporting 11 million tonnes a year with only minor upgrades needed and that will help DMC bring the operation into production at a faster rate than its peers in Australia."

Just need it all confirmed and the market to agree.

Duckman


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## adobee (23 June 2008)

Financial Review page 20 small note

which states expect from memory -

Expect the DMC mining scoping study out this week to say for 
$200 million they can start producing 3million tones of ore 
for another $290 million they can ramp up to 11million tones of ore..

Any specialists able to give some thoughts on these ratios ??

YT perhaps ?


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## YOUNG_TRADER (23 June 2008)

How the hell did these financial papers get a hold of the scoping study figures pre ASX release?


I really need to see the whole scoping study before commenting but Ope Ex of $22/t is farking cheap!!!!!!!

Also CAP Ex of $200m??????????

SRK and SDL's Cap Ex's are like $2Billion to $4Billion

If DMM can get off the ground with just $200m they can then use "bootstrapping" to pay for expansions, ie use profits from small scale cashflow to get larger operation up


I can't wait for the ann


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## alankew (23 June 2008)

YT you can save yourself the cost of a paper,according to the ASX site ann is out,cant post the link for some reason


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## serg261 (23 June 2008)

KEY FINDINGS OF THE REPORT 

• Although the Mayoko Iron Ore Project is at a very early stage 
of development the preliminary economics appear attractive 
and therefore justify advancing to a more detailed level of 
assessment. 
• Direct shipping ore (DSO) production of 3Mt/a to commence as 
stage 1, and to increase to 11Mt/a within 4 years. 
• Existing rail capable of transporting 11Mt/a with minor 
upgrades. 
• Capital expenditure estimate of USD$198 million for 3 Mt/a 
DSOoperation.  
• Capital Expenditure estimate of an additional USD$288 million 
(USD$486 million total) to achieve 11Mt/a DSO operation. 
• Operating costs estimate of $22/tonne for 11Mt/a 
• Revenue potential of USD$1.1 billion/a based on 11Mt/a at 
current spot prices or USD$302 million /a  based on 3Mt/a at 
current spot prices. 
• Timeline to production forecasted at 4 years to achieve 11Mt/a 
operation.

Looks like it's in Pre-Open.. I think we may be in for a wild ride!.. good luck to all!


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## Wysiwyg (23 June 2008)

Time frame and transport link not too distant are some plusses to the project.



> Although the project is at a very early stage of development it appears promising and should be taken to a pre-feasibility study level. The economics appear robust and it compares favourably with its peers in the mid-west region of Western Australia.
> *The existence of an operating rail line within 3-5 km of the proposed mine **site raises the possibility of bringing the mine into production within a short time frame.*




my 2 cents worth


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## YOUNG_TRADER (23 June 2008)

Mr Market why don't you ever make sense lately? lol

Well I'm still reading through the ann but from what I see so far I am very very impressed

Key points I like are

1. Very low Cap Ex when compared to SDL SRK and other oversea's operations

2. Very high margins givent he amazingly low Op Ex of $22/t

3. Short lead time to first stage production which will allow for boot strap funding


Here's the only negative for DMM: NO ONE KNOWS ABOUT IT! 

Like I said I will hold this for what I believe is fair value


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## Go Nuke (23 June 2008)

Yep they seem to want to get started nice and quick on this project announcing that pre Feasibilty to start immediately.

Good to hear you say $22/ ton is cheap YT.

Ive got no idea what im reading unfortunately so I dunno if its good or bad news.
Though it does look as though they aren't too concerned with the level of Silica etc.

Is this as good or better than you hoped for YT?

* edit ...you have answered me before I could post..lol*


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## Duckman#72 (23 June 2008)

YOUNG_TRADER said:


> Mr Market why don't you ever make sense lately? lol
> 
> Well I'm still reading through the ann but from what I see so far I am very very impressed
> 
> ...




I agree - quite impressive. 

The market's indifference to the announcement is dissappointing. I can only assume that it is once again the "Duckman Factor". Sorry to all other holders.


Duckman


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## Largesse (23 June 2008)

Whilst DMC will not reap the full benefit of this price hike due to the lower grade ore, you would expect they would benefit immensely from Rio's anticipated 95% rise on their contract price. 
IMO, this price rise is near a certainty. 

Anyone got a nice EPS spreadsheet they would like to share?


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## d_crome (23 June 2008)

Also given the cloud that Friday's DOW close has put on the ASX today - you really have to question the judgment of releasing an announcement that good on a day this bad.


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## Go Nuke (23 June 2008)

Hey at least the buy/sell ration is less than half right now!

16 buyers to 31 sellers.

Surely people might be thinking that the DOW is due for a bumper session tonight perhaps?


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## alankew (23 June 2008)

I can only think that the people that wanted to buy in are already in(most of ASF,HC,Shares etc)the only people left to buy in are the big guys so hopefully when the rumoured roadshow starts we will something like what we have all been expecting.At least it didnt go down


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## d_crome (23 June 2008)

Nuke - I guess I'm just frustrated that pre study this thing was moving, 3:1 buy/sell ratio and we were @1.0's - now the study is out, sell/buy ratio is now 5:1 and the price is 0.25 less.

Hope the DOW does get it's act together.

But I really hope DMM management manage to get some more press for this study tomorrow...

PS - LOL - check that SP now, it hasn't BUDGED and now there are actually LESS buyers than prior to the announcement - fickle, fickle market indeed.


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## rhyslivs (23 June 2008)

WOW I'll be honest, I really did not see that coming!

I actually almost cant believe my eyes, but alas what can you do.

I hope this gets a bit of coverage tonight and we could maybe see a rebound in the price tomorrow.

Rhys


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## jbowman101 (23 June 2008)

Correct me if I’m wrong...
but my preliminary analysis of the scoping study proved highly attractive!
so I’m happy about that. 

I think in terms of today’s market action:

1. we only had an hour to analyze the report and make the relevant trades. 
2. DMM is a unknown 
3. the day traders took us apart as they scrambled to close their positions 

We really need some press coverage!

All in all I’m not concerned.... as the day traders move on eventually we should see some strong SP growth in the short term. Hopefully tomorrow there’s an article In the west Australian which will help us on our way.

Cheers


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## adobee (23 June 2008)

talk about buyers drying up.. !!

Now all you DMM holders and faithfuls login to your online trading accounts and put in some buyer orders .. cost price averaging i want to see 1m in orders by tomorrow morning !!!!!!!!! 

Anyway sounds okay.. I am a bit confused how the AFR had the info prior to the announcement and make make some enquiries in this regard.. at least it was in a trading halt..


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## jbowman101 (23 June 2008)

evening all,

after reading through the scoping study, personally i think it is fantastic report and i'm looking foward to the coming months. Originally i looked at this company with a short term goal of getting in and then out, but now i'm set in for the long run....

we all need to do ourselves a favour and spread the word to some more significant investors with a long term prospects. Hopefully DMC get ontop of their PR now they have some more concrete information to sell to the public

opinions on the scoping study guys.... ??? 

cheers guys


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## Largesse (23 June 2008)

My Opinion.

Solid ANN, need to remember IO price hike due in coming months.
Opex of 22$/tonne is very low.
Capex for 3Mtpa sub 200mill USD, for 11Mtpa sub 500mill USD.

With a bit of luck, could probably raise 75%+ of the initial Capex in debt.
That... would be awesome.


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## ans25 (23 June 2008)

Damn that sp went out of the roof, and then it settles down, im confused, day traders, more like late afternoon traders.
I really hope this stock is not going to be spoilt by traders, i thought with the amount of volume and current sp that it wont be subjected to day traders that much but I guess that's soon abt to change
I thought this was going to be in trading halt until wednesday morning.

So what do you ppl think? Will this go past $1.20 before end of this month?


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## jbowman101 (23 June 2008)

little off topic here... question about T3 day traders


if a T3 day trader buys say 10,000 shares, can't they effectively keep there position open for a longer time buy selling there shares to themselves.

for example: 
monday: buy 10,000 shares @ 80cents

wednesday:  market price is 72 cents, they don't want to sell at that price.
So they sell the shares at $1.50 and then buy the same shares @ that price to reset there T3 trade. In this way they keep there positions open whilst only paying the commission.

is this possible, is this what they do ?

Cheers


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## dj_420 (23 June 2008)

jbowman101 said:


> little off topic here... question about T3 day traders
> 
> 
> if a T3 day trader buys say 10,000 shares, can't they effectively keep there position open for a longer time buy selling there shares to themselves.
> ...




How did they sell the shares at 1.50 when market price is 0.72?

If they bought at 0.80 and sold at 0.72 they have lost $800, sorry you may have lost me? I dont understand the logic.


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## jbowman101 (23 June 2008)

ahaha

that's the question...

if the market price is 0.72$ the day the T3 trade needs to be closed. is it possible for them to put their shares for sale at a price above the market say $1.50 and then rebuy those shares at $1.50 (reopening another T3 trade). in which case they have sold the shares to themselves to reset their T3 trade....


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## dj_420 (23 June 2008)

jbowman101 said:


> ahaha
> 
> that's the question...
> 
> if the market price is 0.72$ the day the T3 trade needs to be closed. is it possible for them to put their shares for sale at a price above the market say $1.50 and then rebuy those shares at $1.50 (reopening another T3 trade). in which case they have sold the shares to themselves to reset their T3 trade....




Even if they put their shares up for sale at $1.50 above market price they will only be able to buy them at what the market is offering for 10 000 shares.

To reset their trade the sell will actually have to be actioned, in the past Comsec would actually deduct the shares off your account even if the sells were an outstanding order, NOW however the shares are only deducted after the sale goes through.

I dont know if this is what you are refering to? 

If they buy 10 000 shares at 0.80 and sell three days later at 0.72 they will have lost $800 and reset the trade.

If they instead buy 20 000 at 0.72 they have lost $800 on first trade reset the T3 and opened another 10 000 trade.


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## Sean K (24 June 2008)

kennas said:


> I think the only thing you can say from the chart is that it's trending up, but how high is not indicated. I anticipate resistance around the congestion and all time high between .98 and 1.08. So, that area would be my target, for now. On the downside around .80 is probably support. You would think it should correct naturally at some point, and I anticipate this $1.00 ish area. Or, maybe it just keeps going up in a straight line till $150?   LOL.




Correction done IMO, and the SS confirms this is going to be a good operation.



Go Nuke said:


> ps..the Cup and handle is still in play at least




Yep, it could be. Handle is there, but a bit steep. Breakout though the tips of the cup at $1.10 gives quite a significant longer term target around $1.70 ish I suppose. Will be interesting to see how it goes. 

(disclaimer, these projections are just likelihoods and no certainty of course)


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## adobee (24 June 2008)

jbowman101 said:


> ahaha
> 
> that's the question...
> 
> if the market price is 0.72$ the day the T3 trade needs to be closed. is it possible for them to put their shares for sale at a price above the market say $1.50 and then rebuy those shares at $1.50 (reopening another T3 trade). in which case they have sold the shares to themselves to reset their T3 trade....




If they put a sell at $1.50 and then a buy at $1.50 they would still have to buy everything below.. ie if there are 400000 shares at $1 they would be the first in cue to be sold ? correct me if I am wrong ..


----------



## adobee (24 June 2008)

ans25 said:


> Damn that sp went out of the roof, and then it settles down, im confused, day traders, more like late afternoon traders.
> I really hope this stock is not going to be spoilt by traders, i thought with the amount of volume and current sp that it wont be subjected to day traders that much but I guess that's soon abt to change
> I thought this was going to be in trading halt until wednesday morning.
> 
> So what do you ppl think? Will this go past $1.20 before end of this month?




From what I can see at the moment I am hoping this doesnt go below 60c buy the end of the month .. Nobody is buying this .. !


----------



## YOUNG_TRADER (24 June 2008)

YOUNG_TRADER said:


> How the hell did these financial papers get a hold of the scoping study figures pre ASX release?
> 
> 
> I really need to see the whole scoping study before commenting but Ope Ex of $22/t is farking cheap!!!!!!!
> ...






serg261 said:


> KEY FINDINGS OF THE REPORT
> 
> • Although the Mayoko Iron Ore Project is at a very early stage
> of development the preliminary economics appear attractive
> ...






YOUNG_TRADER said:


> Mr Market why don't you ever make sense lately? lol
> 
> Well I'm still reading through the ann but from what I see so far I am very very impressed
> 
> ...






Largesse said:


> My Opinion.
> 
> Solid ANN, need to remember IO price hike due in coming months.
> Opex of 22$/tonne is very low.
> ...





Well this is the mkt isn't it,

DMM has come out with what can only be described as an amazing ann and no one cares, I hate to say it but perhaps sometimes maybe alot of forum chat is needed, I can't believe how cheap DMM are and to rub salt in the wound RIO got a 95% increase to the Iron Ore price,

This is why China is taking over ore resources companies left right and centre we Aussie investors have no clue on how to value them properly


----------



## ans25 (24 June 2008)

Wow its below 70c now, im really frustrated, why is this going for less and less?

Just yesterday it hit 90c and now down 22c,??


----------



## d_crome (24 June 2008)

DMM need to take some serious steps to get noticed.

First thing they need to do is congratulate the person that issued the trading halt and then fire the person that decided to resume trading with only ONE HOUR to go on a DOW RED DAY...

They THEN need to HIRE SOME PR.

Some seriously loud, obnoxious, MAK/MXR style PR that'll ram this down peoples throats so hard that everybody and their taxi driver will know about DMM.

It's amazing this is flying so far under the radar that they're tunneling at this point.


----------



## jonojpsg (24 June 2008)

So what should DMC be valued at then?  At their initial 3MTpa rate,they are making what $305m a year minus $66m opex gives $239m.  They pay off the capital in the *FIRST* year   which means they can basically pay for the production increase to 11MTpa themselves.  

So in four years time, they are making around $800m a year profit!!!!!!

With around 30m shares on issue, that makes hmmm, let's see

$26 per share

Can someone check this for me??  Are we seriously saying that the current SP reflects this scenario????

I think I might sell up all my other positions and buy this while it is this crazily low.


----------



## malachii (24 June 2008)

Maybe this is a positive (!!!????).  It is pulling a lot of short term traders out and triggering stop losses.  If you are in this for the longer term - when this pullback is complete - it allows the price to increase as there are less people "bailing out".

Or maybe not!!

I've bought some more.  I think the fundamentals are good.  Some will see this as a buying opportunity - taking advantage of the "insanity" of the market.

malachii


----------



## Sean K (24 June 2008)

I agree with above sentiments. I'm just doing my own back of the envelope figures to see where it sits, but looks to have been sold off for ...... what? 

Mr Market is speaking however, and it ALWAYS over and undershoots due to fear and greed. 

Fear of what?

Potential 11Mt pa DSO?


----------



## malachii (24 June 2008)

If you're watching this morning's trades and depth of market (up till now 11.06am) the whole "drop" has been caused by half a dozen people all trying to see who can dump their stock for the lowest price.  The band from .68 to .83ish have been there all morning - they just keep going .01 less than the last guy.  There are no new sellers there - just people moving their price lower and lower until it hits a buyer.  To me this shows that once these guys are out of the way - the downward pressure will ease and most other holders will not "dump" at any price.  Like I said in the previous post - I'm buying because I think we will see a bounce - However - this stock is doing funny things so have your own opinion.

malachii


----------



## alankew (24 June 2008)

Kennas any glue for that cup and handlePerhaps its a mug instead.As i said yesterday there has been a lot of expectation built up over this with plenty of people buying in at the 90c plus mark.For some reason the market hasnt like the ann(not yet anyway)and some of these buyers at 90c are selling no matter what.When this moves,it really moves.I have held from IPo and sold a couple of times and have never managed to get anywhere near the yop(probably just me though)Remember the instos that have bought into this at the 80c mark and look at their past buys and how well they have performed.Just makes my job of deciding exactly when to sell much easier(I wont be selling yet)Pity Mr and mrs Kew have already spend the money in our minds


----------



## d_crome (24 June 2008)

DMM really should do a follow up announcement stating their plan to expand their initial JORC'd resource - get the market informed (and hopefully excited) about a rather probable increase in extractable resource.

With the Scoping Study set, this would be the next logical step.


----------



## Sean K (24 June 2008)

OK, my take on the basic funnies for this project:

3Mt DSO stage 1 ramping up to 11Mt DSO after 4 yrs.

Current forecast price per tn (from SS) range $50 - $300 a tn.
Let’s give an average of $150 for this basic analysis.

3Mt @ $150 = $450m
11Mt @ $150 = $1.65b

Capex $200m initial and $490m ish ramp up.
Opex: $22 tn x 3Mtn = $66m pa. 

Projected revenue less Opex = $384m net on base case. 

Current MC = 44m ish shares @ .70 = $30m MC

Extrapolating, initial Capex add $200m to MC (assume half equity, half debt, add 145m ish shares =  190m ish on issue, plus time to development ($20m pluck = 28m shares)  =  44 + 145 + 28 = 217m shares on issue * current sp (70c) = $151m MC, at current prices.

On projected earnings:

$384m net at a pe of a random 10, gives an MC of $3.84b.

Projected SP anyone? 

I'm a bit confused..  

Please help me out here, this is obviously incorrect. 





alankew said:


> Kennas any glue for that cup and handlePerhaps its a mug instead.



Mug's still in play Alan.


----------



## Largesse (24 June 2008)

kennas are you factoring in the discount to revenue on the lower grade product?

also need to add risk discounts for: financing (200m), sovereign risk (low), future price movements (potentially negative)

regardless, 
anyway you look at this, it is absurdly undervalued.

i for one am buying.


----------



## grace (24 June 2008)

kennas said:


> Current forecast price per tn (from SS) range $50 - $300 a tn.
> Let’s give an average of $150 for this basic analysis.




Kennas, sorry, but where do you get $300 from?  
Rio new prices locked in Pilbara Lump $201.69, Fines $144.66.

Call me a worry wart, but the rail line is still of concern to me.    One section is 36kg/m (80lb).  Fortescue is 68kg/m (150lb).  That is just about half as strong as FMG's.  Anyone know will it take the weight?  It is very very light!!!Scoping study gives a bit of a general disclaimer on it (need more investigation).


----------



## Sean K (24 June 2008)

Largesse said:


> kennas are you factoring in the discount to revenue on the lower grade product?
> 
> also need to add risk discounts for: financing (200m), sovereign risk (low), future price movements (potentially negative)
> 
> ...



Yep, need to add them in too. There's lots to discount I think. Like tax? Royalties? 80% ownership?

Will add in as other ASF'ers identify other costs.

Thanks!
kennas

(I'm sure YT (LN) could add to this and wouldn't mind a DCF from pattyp)


----------



## Sean K (24 June 2008)

grace said:


> Kennas, sorry, but where do you get $300 from?



Thanks Grace, I've missread the SS pricing I think. 

What is the average price we should be using for DSO, or a range?


----------



## Largesse (24 June 2008)

grace said:


> Kennas, sorry, but where do you get $300 from?
> Rio new prices locked in Pilbara Lump $201.69, Fines $144.66.
> 
> Call me a worry wart, but the rail line is still of concern to me.    One section is 36kg/m (80lb).  Fortescue is 68kg/m (150lb).  That is just about half as strong as FMG's.  Anyone know will it take the weight?  It is very very light!!!Scoping study gives a bit of a general disclaimer on it (need more investigation).




would this have been factored into the CAPEX for the 11Mtpa operation?
as in an allowance for upgrading this section of the rail?

How many Mtpa are Fortescue expecting to move though? I wouldve thought *much* larger quantities than DMM. 
If we are moving half of what FMG move, i'd be satisfied...


----------



## alankew (24 June 2008)

Will they get the same price as Rio/BHP,havent read their ann on price rise but there was talk of a shipping premium for Aussie io.Vale got a smaller price rise(70%?)


----------



## Largesse (24 June 2008)

Also, we need to consider are we going to be looking to sell to a contract or on the spot market?
Rio has locked in roughly 200$(USD?) lump, we would discount by 30% i would expect due to inferior quality.


----------



## Sean K (24 June 2008)

Agree with above. Still points to $150 ave doesn't it?

Of course, will fe stay high into the 2010s....??

Demand from BRIC says yes, supply is a question. Lots coming on....


----------



## d_crome (24 June 2008)

Kenna's - anyway you do the math - this is still ridiculously undervalued.

SP has recovered - I suspect this will be a slow, progressive climb north.

Given the spec type stocks that rapidly rise and fall - I'm happy to see slow, positive progress rather than a rapid rise and decline.


----------



## prawn_86 (24 June 2008)

kennas said:


> Demand from BRIC says yes, supply is a question. Lots coming on....




Depending on the investmet timeframe, this is my biggest concern over the 'hot' IO sector at the moment. 

Many of those who are planning to be mining will be competing with a whole batch of 2nd teir miners coming online at the same time, in about 5 yrs time. Obviously im not an economist, but i think its something people need to be aware of.


----------



## Largesse (24 June 2008)

11:03 	119,540 	68 	19,535  XT
 11:03 	119,188 	68 	15,000 	 XT
 10:59 	114,575 	68 	7,350 	 XT
 10:54 	106,249 	68 	1,200 	 XT

These lucky buggers have made a cool 20% today.....


----------



## adobee (24 June 2008)

Well I have sold out my small position.. sorry guys for now I dont like this one.. if it goes heaps lower I may reconsider or if I see some intrest forming again may reconsider.. There is about as much interest in this as nukes in Iraq!

I am thinking something may be a bit fishy here ... has anyone done any investigation to the directors or the like .. I note the very first post on this thread referes to them doing a bit of a ramp.. With no evidence at all I get a strange feeling like the market is wary..  I am sticking with homegrown wa miners for now..


----------



## jbowman101 (24 June 2008)

have faith and patience people...

this is a valuable stock!

it's fundamentals stand and it may take a few months for the public to cotton on to this but i am confident this stock will experience some nice capital growth over the coming months.


in regards to all this issues raised: impurities, sovereign risk... yes, these are risks. But they certainly don't justify the large discount that is present on this stock.

Also currently there is a shallow buy depth but what can you expect it's a tiny Perth company. As the company progresses with it PR and drilling people will start to take notice, it's just a matter of time and patience.

KEY: DSO, 100MT hematite , 700MT magnetite, small capital outlays, small cap expenses

think about it....


----------



## grace (24 June 2008)

YT, now don't have a heart attack......I took a punt on this one today.  

GRD Minproc did this scoping study.....just how good are they?  They said they didn't even inspect the whole rail line.....good one!  Petrol prices must be getting expensive!


----------



## Largesse (24 June 2008)

*Email sent to investor relations.....*

Hi Dean,

Firstly, I was very impressed with the Scoping study. A lot of detailed work looks to have gone into it, and it presented a clear picture of the projects potential.

What now is DMC’s next course of action? And what time frame will it be operating within? The reported stated that it’s findings were dependant on the ‘streamlining’ from pre-feasibility to bankable resource, does the company have a prospective timeline in which this will occur? Will it be shared with shareholders? (If it has been stated in a previous announcement please direct me to it). 

Lastly, I felt, and I know this feeling is shared with numerous other shareholders, that the decision to release the announcement in the last hour of trading on an obviously depressed day for the broader markets was perhaps lacking a little wisdom. Given the company had a day up it’s sleeve with the Trading Halt until Wednesday, surely it would’ve been better to hold off its release until Today (Tuesday) with the idea in mind that the Dow would have bounced off it low and the broader ASX would have had a more positive air about it for the announcement to be released into. 

We all understand that capital raisings are a necessary part of financing start-up resource companies, share price improvement needs to be a priority now so to avoid excessive dilution of shareholders wealth when the inevitable Capital Raising occurs.

Having said that, I still intended increase my position in DMC in multiples as the scoping study has significantly de-risked the project to me.

Kind Regards,

xxxxx

*...and reply*

Hi XXXXX,

We are very pleased with the research and development that GRD Minproc have done on the Company’s behalf, the Director’s view was that by initiating a Study that exceeded requirements and to have had GRD Minproc view at first hand the infrastructure, as well as meet with relevant Government authorities this will allow key agreement negotiations to proceed quickly and effectively.

Our internal view is that the positive review of these key pieces of development, independently supported by Minproc, gives a further level of optimism for an effective development of the Mayoko Project.

DMC will now be working on negotiation of Port and Rail agreements, accelerating Offtake discussions with interested parties, *geological resource definition through its third quarter drilling campaign* and metallurgical test work to provide the required information to move to Pre-Feasibility as effectively as possible.

The Company is also working to increase its profile among the Institutional, Investment and Broking Community, with a positive Scoping Study a significant cornerstone of that strategy.

In terms of the market, the Company will always work to release  information in a timely manner for its shareholders, on a day to day basis the concern of the Company is the development of its assets not on the day to day permutations of the marketplace. 

Thank you very much for your support and interest in DMC, the Directors and Staff are working to maximize returns to all our shareholders, and we appreciate the information and feedback. Please feel free to contact me on the number below or on my mobile number xxxxxxxxxxxx.

Regards 

Dean Richardson
Investor Relations Manager


Key points underlined.
Would've loved some dates but you know how it goes


----------



## YOUNG_TRADER (24 June 2008)

grace said:


> YT, now don't have a heart attack......I took a punt on this one today.
> 
> GRD Minproc did this scoping study.....just how good are they?  They said they didn't even inspect the whole rail line.....good one!  Petrol prices must be getting expensive!




Oh me Oh my, I better call a medic :

Glad to have you aboard Grace, perhaps you too see the potential upside that I saw from the start,

Although it looks like the mkt is blind to it,

I think GRD Minproc are pretty reputable, I see them advertised all the time next to major International mining companies etc, but that could just mean they have a big advertising budget


----------



## Miner (24 June 2008)

grace said:


> YT, now don't have a heart attack......I took a punt on this one today.
> 
> GRD Minproc did this scoping study.....just how good are they?  They said they didn't even inspect the whole rail line.....good one!  Petrol prices must be getting expensive!




Grace

Interesting postings today from all over
I saw your query on rail size - bloody fabulous and correct. I am guessing you are just not a pretty grace but having a strong background in technical

With the size of rail given the tonnage will be very low but it will be still better than truck and depending on car size the transportation will be okay 
The production rate is lower than FMG's long term plan 200 mTPA so DMM rail is okay until the production goes up

GRD Minproc is a reputed organisation and listed in ASX
Its chairman is ex Premier of WA Mr Richard Court
Even if former Minproc escalated the FImiston expansion from $125 M to $159 M in 1996, still I will not raise a finger on the capability on GRD Minproc

However in the scope of scoping study there are always many exclusions to bring the cost down and often it is Level C estimate that is allowance of 30% cost increase by design. This is not unique but industry standard

Having said all of the above the scoping study is pretty good I would say
But scoping study alone will not deliver and there is a long way to go between actual production and commencement of engineering. FMG was unique but see SDL, MOL, GBG, BML the gestation period varies between the strength of engineering and capital deployment

Once again before DMM enthusiastics hound me I have no cynism against DMM scoping study or GRD capability


----------



## ans25 (25 June 2008)

I cant believe this, its really taking a hammering of late and now its back down to 70c.

Im really thinking twice about this one


----------



## Largesse (25 June 2008)

price is being manipulated.

small vol sell down, big buy steps up.


don't sell your self short just yet


----------



## d_crome (25 June 2008)

Ans - general peice of advice as I've noticed a theme to many of your posts.

_Rome wasn't built in a day!!_

If instant returns are what you want, take a punt down at the TAB or Crown Casino.

If however you chose INVESTING - chose your stocks based on sound fundamentals and principles - much like DMM - you'll get your return - but it won't be an instantaneous one.

Do you think the actual business plan, resource or demand for it has changed in the last 48 hours?

No - it hasn't.  The only thing that has changed is the share price - which is an _instant_ price indicator - nothing more.  Those who placed a "bet" they couldn't finance are simply cutting their losses - these are TRADERS.

Don't make an investment you can't afford to lose.

So my point is - be positive - choose wisely - and don't watch the ASX every 3 minutes!

Again - this is my philosophy - I'm by no means a financial expert, so if you want professional investment advice, I suggest you find a pro or DYOR.


----------



## eclectic_nish (25 June 2008)

great post !! and well said...just a pity i could have picked up much cheaper....but whos to know.

Holding...and happy...good luck


----------



## YOUNG_TRADER (25 June 2008)

To add to what D Chrome said, it must be remembered the mkts are ineffcient beasts, where they effcient the opportunity to make profit would not exist


Share price movements while important as they reflect sentiment are hardly an accurate indication of fundamental value, especially at the Spec/Smaller end of the ASX list

I love DMM fundamentally and have said so from day 1 and have stuck to my guns (but like GCR) the mkt does not agree, 

But to me eventually fundamentally undervalued stocks such as this must get re-rated, that is of course unless I've made a big error in my calculations/thoughts


So right now the mkts are weak and DMM's sentiment is clearly negative hence the falling SP and as we can see by soem of the posts this can create a snow ball effect, ie SP falls more and more holders question the stock, their assumptions and the fundamentals until they too capitulate and pull the plug


As D_Chrome said Rome wasn't built in a day and YML didn't go from 16c - $3 in a day, it took 6 months


----------



## Sean K (26 June 2008)

OK, my revised take on the basic funnies for this project:

3Mt DSO stage 1 ramping up to 11Mt DSO after 4 yrs.

New RIO price is $201.69, Fines $144.66. However, long term prices? The SS gives some figures to be mentioned later, but they seem crazily conservative to me. 

From SS:

By international standards the iron ore grade is lower than typical for direct shipped ores and the impurity levels are higher than desired. However, this appears to be more a disadvantage than a project impediment. The ore may be amenable to upgrading by blending, selective mining or beneficiation during processing.

Stage 1 would see the construction of a crushing and screening plant to process haematite and produce direct-shipped-ore (DSO).

Added cost of beneficiation is not mentioned in SS, but we should assume is in the $200m Capex for Stage 1.

Also as pointed out future price movements? The SS gives three possibilities with spot, long term high and long term low potential for lump and fines. 

Spot: $1.80/$1.80
High: $56.25/$45
Low: $31.05/$27

How they get a long term low price for lump at $31.05, I couldn’t even guess. What’s with the 5 cents anyway? Ridiculous. 

From SS:
This is at the low end of prices realised from 1980 to 2004 and provides a reasonable estimate of the minimum revenue stream that could be realised.

1980 to 2004? What the?

Personally, I’m a stronger for longer on BRIC and resources for some years to come, and can’t see IO prices dropping back to the low prices between 1980 and 2004. Chindia was still living in mud huts in the 80s!!

So, for what it’s worth, their revenue projections:

Hematite totals for lump and fine:

3Mt pa on Spot/High/Low is:
$302.4m/$84.1m/48.4m

11Mt pa on Spot/High/Low is:
$1.1b/$308m/177.5m

Magnetite:

3Mt pa on Spot/High/Low is:
$361.8m/$149.2m/$76m

I think over the next 2-5 years we should see prices stay high, maybe even increase further, but as a broad pluck (any other plucks welcome to be tested) settle between $80-120 tn. So, I am going to use these figures as high/low for the hematite. Let’s even forget about the Mag for the moment. 

So, at 3Mt a year on $80/$120 =
$240m/$360m pa

On 11Mt a year on $80/$120 =
$880/$1.32b

Capex: 

$200m initial for 3Mt start up and $490m ish ramp up to 11Mt facility. 
Assume half debt and equity add initial $100m to MC and $245 ramp up. 
(Or, should it be all equity?) Also factor in additional funds to get through BFS up to ramp up, $40m.

Projected diluted MC at initial 3Mt start up and 11Mt: 
$180/$305m. 

Add 30% fudge = $234m expanding to $396m MC.

Opex for 11Mt facility is: $22 tn x 3/11Mt = $66-220m pa. The SS only gives costs for the 11 Mt facility which comes to $244m. (Bit different to my calcs) Can we assume $66m for 3Mt facility? I assume yes at this stage. Opposition?

Let’s add in 20% fudge in Opex to be conservative = $79/292m

Revenue (based on my High/Low for 3Mt and 11Mt operation)

3Mt pa:
Low $240- $79 = $161
High $360-$79 = $281

11Mt pa:
Low $880m - $292 = $588m
High $1.32 - $292 = $1.028b

80% ownership, revenue:

3Mt pa
Low $128.8m 
High $224.8m

11Mt
Low $470.4m
High $822.4m

Tax…??

Current MC = 44m ish shares @ .70 = $30m MC

On projected MC to Cash flow.

$180m/$305 MC. 

V

$128.8m - $822.4m Cash flow potential.

Lets slap a pe of 8 on them, potential MC of $1.03b - $6.58b. 

Looks undervalued.


If anyone has another thought on those, we can amend. 

In regard to the rail, the SS does not say that there will be a requirement to upgrade the capability of the line, only to extent it. We would have to assume the first shorter section from Dolisie to Mossendjo using 36 kg/m rail section (medium strength) is going to be OK. Up for argument I suppose. I am not sure how long this section is but it sounds like just one shortish section. If it is a problem, perhaps it will be upgraded as required during development?


----------



## Duckman#72 (26 June 2008)

I'm prepared to wait for the share price to reflect real value.  

Couldn't resist and bought some more this morning. They are getting sold down on a Green Day. Hope it doesn't lead me to a boulevard of broken dreams. 

Duckman


----------



## ans25 (26 June 2008)

I think Im realising that this one is for long term and not the short term, Its best to lock these up and not look at them for a while


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## YOUNG_TRADER (27 June 2008)

I really wish this mob would get some broker coverage/insto support behind them

Its currnet mkt cap is a joke for what it has,

Come on guys, great projects and delivering results is not all of the battle, you need good PR too so get to work!


----------



## d_crome (30 June 2008)

Any idea what to expect from DMM over the coming weeks?  Announcements, drilling activity, JORC expansion etc?


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## ans25 (30 June 2008)

THe share price to further decline

I dont understand at all, All i know is that DMM is only for the patient


----------



## Duckman#72 (30 June 2008)

ans25 said:


> THe share price to further decline



Hi Ans

Do yourself and other investors a favour and please don't look at the daily share price. It fell 2c today on bugger all turnnover. 

Just chill out!!! 

Duckman


----------



## wogitalia (1 July 2008)

I'm out of this one, market doesn't seem interested at all, will almost certainly be back when it wakes up to it, but for now no point having my money sitting stagnant in it.


----------



## YOUNG_TRADER (1 July 2008)

YOUNG_TRADER said:


> To add to what D Chrome said, it must be remembered the mkts are ineffcient beasts, where they effcient the opportunity to make profit would not exist
> 
> 
> Share price movements while important as they reflect sentiment are hardly an accurate indication of fundamental value, especially at the Spec/Smaller end of the ASX list
> ...




Thought the selling would have finished yesterday, but a few more stale bulls to go it seems

Sooner or later this ridiculously cheap mkt cap vs project has to change


----------



## alankew (1 July 2008)

YOUNG_TRADER said:


> I really wish this mob would get some broker coverage/insto support behind them
> 
> Its currnet mkt cap is a joke for what it has,
> 
> Come on guys, great projects and delivering results is not all of the battle, you need good PR too so get to work!




Supposed to be doing a roadshow in the next week or so but thats what I was told last week as well.After putting together a comprehensive report as they have(they quoted 1000s of manhours work) you would have expected them to be shouting from the rooftops and now after the SP hasnt gone the way they(and US)wanted they will have to pull out their finger


----------



## d_crome (2 July 2008)

I dare say this can only be put down to an extreme case of poor PR skills and zero marketing resources at DMM.

I also question the timing of the release of the schedule.

As a share I holder, I expect more from a company that I decide to invest my $ in.  Hopefully management are in the process of realizing there is more to mining than just that - mining!

Come on PR firms, please actively chase these guys and say "Hey, it's ok, you do the science, the geo, the ground work - we'll make sure everybody _else_ knows just how good you are and how great your project is".

As I say - Rome wasn't built in a day, but also the world knew where Rome was....

Again - DYOR, these are just my rumblings and I have no skill, talent or training in anything.


----------



## eclectic_nish (2 July 2008)

let it rest guys.

All in good time !!...now is the time to accumulate not sell !

Good luck...


----------



## JTLP (3 July 2008)

Fantastic announcement today.

Expansion of the board of directors...even got a native on board too!

DMM have so much going for it...and are getting cheaper by the minute LOL!

Looks like Mr Market is in a Coma...

Time to crank up that PR machine DMM (from zilch to maybe some chinese whispers  to get this juggernaut moving.

What did all my other fellow sleeping beauties think about this announcement today?


----------



## YOUNG_TRADER (4 July 2008)

I found it interesting how 1 chap seemed like a well connected international tpye and the other seems to be a well connected Congo type with Govt links/relations,

I guess in Africa its best to have the Govt on your side,

With Iron Ore in such high demand and DMM trading on an *EV Mkt Cap of like $30m* I reckon it will only be a matter of time before someone takes a tilt at it

I remember back when U was hot I couldn't understand how MTN was so cheap given the size of the deposit it had, it sat for months at 50c and I kept saying either it gets re-rated or a corporate raider/take over will happen

Well sure enough it did and the SP reached an amazing high of $6.50, sadly I stagged it on the way up but still made a truck load,

For me DMM reminds me of MTN and I am sure 1 way or another the stock has to push towards $1.50

Time will tell, I still have a few months to be correct


----------



## JTLP (4 July 2008)

I agree YT...making all the right connections.

Who was talking about Broker Roadshows? Somebody better ply the DMC board with some ink beforehand so they can remember how to talk :

On a side note; i tried to be a smart a$@e yesterday and put in a buy order at 0.64 cents (small one for gags). Didn't have time to check anythign until 2 oclock today when I realise that i am now owning some extra DMM shares!

LOL that will teach me 

Let's get some federal green happening DMM!


----------



## d_crome (4 July 2008)

Hate implying it - but it's not what you know it's WHO you know when you're dealing in some places on this earth.

These blokes definitely look like they're heavily connected.

I'm sure knowing somebodies second cousin, half removed who went to school with the neighbor of a guy who used to play golf every 4th sunday with ministers nephew certainly helps in a part of the world that isn't _exactly_ stable....


----------



## eclectic_nish (4 July 2008)

Agreed YT, these guys are sorting out their connections well in advance. It is quite rightly said, in Africa..its who you know not what you know !.

Im very impressed with the anns but also intrigued by the OIL expert. I was lucky to pick up more at 62c 

Good luck all


----------



## Sean K (4 July 2008)

I've had a quick look at the new guys CV and I'm thinking WTF!

It's like bringing in a soccer player to an aussie rules team.

At least he plays in the same country I suppose.

Maybe he was good at footy earlier on in life? 

Let's hope he's not a basketballer.


----------



## d_crome (4 July 2008)

Kenna's - more to the point - I hope they played soccer on the same team as say some UNION LEADERS or LOCAL POLITICIANS did.

This guy could be an expert in underwater basket weaving for all I care - so long as he does his part to get DMM to production, thats as far as I'm concerned.

It's unfortunate that business ethics don't exist in some places in the world - but as they say, when in Rome....


----------



## kenny (4 July 2008)

Impressive sounding CV's for both. Does anyone have information on the remuneration these two are receiving for their services? Does DMM have to release details of any option/share packages?

I wonder if there might be a future link up with Mr Okemba's Elf/Total group?

Regards,

Kenny


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## YOUNG_TRADER (4 July 2008)

Kenna,

Got to remember mate in Africa they don't play Aussie Rules, so no point having a team that consists of Footy players, else the mining licences will no doubt get revoked,

If your poking around in someones backyard, best be accompanied by the  locals I think



eclectic_nish said:


> Im very impressed with the anns but also intrigued by the OIL expert.
> Good luck all




Ineresting, sorta didn't consider the oil boy part till now, makes you wonder if DMM is considering diversifying into Oil?



kenny said:


> Impressive sounding CV's for both. Does anyone have information on the remuneration these two are receiving for their services? Does DMM have to release details of any option/share packages?
> 
> I wonder if there might be a future link up with Mr Okemba's Elf/Total group?
> 
> ...




Hey Kenny,

A doubt a JV with Elf/Total would be on the cards for the Iron Ore project, but you never know, maybe there's oil in them hills?


oh and yes, any share option packages have to be disclosed to the mkt, I hope it is option packages only, you know the whole aligning shareholders interests with maangements, much better than just paying em cash


----------



## Sean K (4 July 2008)

YOUNG_TRADER said:


> Kenna,
> 
> Got to remember mate in Africa they don't play Aussie Rules, so no point having a team that consists of Footy players, else the mining licences will no doubt get revoked,



 Roger dodger,

codger.

But, I stick by my rant. 

It's like tech companies turning to U, turning to IO, turning to RP. No vision.

Having said that, I think IO has a LONG way to go, and DMC are rediculously undervalued...

(holding)


----------



## J.B.Nimble (4 July 2008)

I liked the announcement - it shows the DMM management crew understand how to operate in this environment. Congo may be stable but it has all the usual corruption problems. 

How bad?... I checked the Transparency International Corruption Perceptions Index. For those who aren't familiar with it, it is a fairly scientific (multiple surveys) study ranking countries according to the apparent degree of corruption. On a 0 to 10 scale, you have NZ, Denmark and Finland top of the table with 9.4, Australia in 11th with 8.6, and then it is a long way down to 179th place Somalia and Myanmar on 1.4. I currently work in a 3.5 and it is light years ahead of the 1.9 where I worked previously - you can certainly feel the difference... 

Republic of Congo comes in at 2.1 which makes it a very difficult environment for making things happen...  Without the right people on board, the project will bog down in red tape and go nowhere.

And that is where our new executives come in. To state the obvious, these two guys will be worth their weight in gold... Mr Okemba who has held two ministries and been special adviser to the President is an outstanding catch. As for Dr Gachet, forget the oil background, he looks like the details man for opening up a large development project. Between them they should be able to clear the obstacles to development and ensure that the "correct" partners/suppliers/contractors are selected  No one needs to do anything that would land them in front of a court but the project flows smoothly. Well done DMM...!

Interesting to note the connections to GBE through the David Sumich-Mark Sumich connection. Even sharing some office space it would seem. I'm guessing we can expect some parallels in the approach to developing GBE's Malawi projects (2.7 on the CPI). 

http://www.transparency.org/policy_research/surveys_indices/cpi/2007


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## Pimping (8 July 2008)

C'mon DMC what's going on? down 10% today, all be it on low volume, when will mr. Market wake up and smell the roses!!!! Anyway what's next for DMM? are we to look forward an announcement? Heavans No says the blind man!


----------



## Sean K (8 July 2008)

Pimping said:


> C'mon DMC what's going on? down 10% today, all be it on low volume, when will mr. Market wake up and smell the roses!!!! Anyway what's next for DMM? are we to look forward an announcement? Heavans No says the blind man!



A couple of things.

No progress.

Market.

Adds up to down.

They need to get moving, or the price will continue to slide.


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## YOUNG_TRADER (8 July 2008)

Chart wise 60c looks like good support

The stock is dirt cheap and for the size/potential Fe it offers it presents a very tasty morsel

My guess is if it stays at this ridiculously cheap $30m mkt cap a predator will come along just like MTN


----------



## eclectic_nish (8 July 2008)

Hey all

The depth has changed heaps over the last couple of days.
The oppies seller disappeared and the road looks clear back to mid 90s. Im guessing the accumulation and selling has ended. I agree with YT, 60c looks like the support. My charts are saying there's something happening and we are at the pivot point. Hold on guys and dont sell into it. 
I see $1.50-$2 within 3 months.


----------



## d_crome (8 July 2008)

Markets quite frankly are in shock - look west and blame those Hummer driving Yanks because at this stage they're freaking out.

Once July is over and most large US corporations list their half yearlies - this SHOULD bring some stability to the markets as I have a feeling these results will be bad - But not _QUITE_ as bad as the US markets are expecting - hence you'll see a bounce.

This should take 2 to 4 weeks - and hopefully during this time DMM will be able to produce some market announcements - aren't they supposed to be expanding their drill campaign to enlarge their JORC right now?  DMM - please, if you're rather challenged PR is listening - LET THE MARKET KNOW!!!

That all said - the SP will continue to take a battering as yanks so accustomed to day trade gambling will regain their backbones and do what they do best - buy things with great enthusiasm.

Hopefully the SP will hold at current levels - for those with the capital this is just too easy - I'll be holding till the SP reaches true value, not bargain basement levels that are represented in today's market.

Good luck to the holders.

And again - just my opinion - I'm far from educated, so please DYOR.


----------



## ans25 (8 July 2008)

eclectic_nish said:


> Hey all
> 
> The depth has changed heaps over the last couple of days.
> The oppies seller disappeared and the road looks clear back to mid 90s. Im guessing the accumulation and selling has ended. I agree with YT, 60c looks like the support. My charts are saying there's something happening and we are at the pivot point. Hold on guys and dont sell into it.
> I see $1.50-$2 within 3 months.




I disagree because there are no buyers!!! I would be predict to say that this could even hit 50c or so in the next week because volume is low and it is very volatile


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## eclectic_nish (8 July 2008)

best not to look then.

I'll be coming back in a month's time.

Hopefully by then my stocks and oppies will be worth something


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## blehgg (8 July 2008)

What happens if all the buyers disappear?

1	3,000	0.505
1	3,960	0.500
1	50,000	0.400

Theres three left right now.. Have never seen a clean slate on one side ~ Wouldn't you guys be accumulating more if its gone so low??


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## mike85 (8 July 2008)

ans25 said:


> I disagree because there are no buyers!!! I would be predict to say that this could even hit 50c or so in the next week because volume is low and it is very volatile




closed at 50 today! 
as blehgg stated, not many buyers around 
will have to wait and see what tomorrow brings


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## Go Nuke (8 July 2008)

Yeah well picked ans25.

YT I'm feeling ur pain mate, as u disclosed roughly how many DMC you bought.
If you thought 60c was cheap, how confident are you now that 50c will hold?

No buyers around alright...wheres all the DMC faithful bids lined up at 50c+ 

Ah at least we can feel secure to also see the big miners getting hit hard too lately.
Its just the sector and yes lol..those yanks freaking out.
I really wish our market wouldn't follow theirs.
There's no reason too!

Good luck guys and hang tight:>


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## rhyslivs (8 July 2008)

Its not nice watching it take this punishing on such little volume. 

I would think the company would only need to generate a little bit of interest and it could get it back on the rails. Its seem no one actually knows about this company or surely people would have been picking them up at these heavily battered levels. 

Wonder who's selling down here and where do they see the better opportunity! I want the inside scoop!

Rhys


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## eclectic_nish (8 July 2008)

just cant wait for my tax loss money to come in. Hopefully DMM will be around these levels.

Holding and not selling anytime soon.....like i have a choice 

Cheers..and good luck all


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## YOUNG_TRADER (8 July 2008)

I'd point to a few things

Total volume for the day was what? 27k?  In dollar terms it was like $15k, I hardly see that as a major holder selling

To me the small sells to close it at 50c looks like an effort by someone to make it look weak so that they can accumulate more

I'd buy more but I'm waiting for some sort of sanity to return to the mkts first

I have rung the company repeatedly and stressed to them that they really need to get more broker coverage/support happening

My call is that if DMM stays around these levels long enough a takeover offer will come from a predator

p.s. Wish Talbot would look over here


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## ans25 (8 July 2008)

Hmmm Im tempted to jump back in now especially @ 50c.

Wow, I said this will get to 50c in 1 week not in like a few hours 

If I buy a few grand worth Im sure this will cause a tidal wave...lol... such is the state of DMM these days


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## JTLP (8 July 2008)

Here is something for all the holders to remember.

Pre Feasibility Study we were sitting around the 90 cent mark.

We now have confirmation that the ore can be mined cheaply, transported (quite cheaply maybe need some expenses to upgrade rail) and we have 2 prominent figures on the board.

And we hit 50 cents.

What's changed? Nothing. Did DMM deserve to get smashed by 25% today? You've got to be joking. Look at other Iron Ore hopefuls that don't even have transport options yet. How are they going? Holding up better then DMM? You better believe it.

I'm not one for ramping but don't be fooled by DMM's volatility...CRAPOLA volume today too.

Eh...one day the market will get it


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## ans25 (8 July 2008)

Thanks for helping me out, I dont know which one, Im thinking right now Ill go in for a quick buck in CFR, but I think DMM can virtually rise to 90c again pretty quickly as we all saw before (on literally v little volume).

I would be a bit worried though if DMM crashes to below 45c though.

Ive set that as a target as in to re-top up.


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## grace (8 July 2008)

Well I was guilty of picking a few (very few) up today. Looking at the chart, 50c is another resistance level.  Not much in the buy depth though.  What is resistance after that, if someone is game enough to tell me.


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## JTLP (8 July 2008)

A lot of churn around the 50 cent mark a few months back so hopefully that holds.

If she doesnt then you have fairly weak resistance at the 35 cent level before it crash bangs into the lower 30's/high 20's.

DMM needs a hero (and a new PR manager).


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## d_crome (9 July 2008)

They're next announcement could read like this:

DMM Announces - NEW PR MANAGER

The SP would double.



Also I'm sure maybe when the board realizes that if they don't get their marketing act in gear and they're the target of a hostile bid - I'm sure they'd get the point.

The market right now is just too insane for me to follow or gauge so I'm just putting all my specs in the bottom draw for now and just sitting back, waiting for normality to return or for all hell to break lose!

And if all hell breaks lose and Australia descends into Post Apocalyptic Mad Max doom - I really don't think I'll be giving a bugger about my paper loss this week.


----------



## d_crome (10 July 2008)

Announcement out - can somebody with more financial gray matter than myself explain it?

Please?


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## YOUNG_TRADER (10 July 2008)

D Chrome looks like some sort of technicality issue

ie to list the shares and options that were given as payment for the project they are lodging a prospectus 

"This Prospectus has been prepared for:
• The purpose of facilitating the secondary trading of the Options recently issued by the Company under the Options Issue;
• The purpose of facilitating the secondary trading of the Shares to be issued pursuant to the Facilitation Agreement;"


I still can't get over how cheap DMM is, even at these levels even the Indian Iron Ore specs NSL and CFR carry larger mkt caps, really makes you go what the?????


----------



## d_crome (10 July 2008)

YT - thanks mate.

I'm completely perplexed myself at the current slump....hopefully they're drilling now and expanding that resource base!


----------



## kenny (10 July 2008)

Was there any significance to the spike in trading volume just recently?

At first I thought it might have been related to the shares recently released from escrow but there weren't enough traded.

The issue of shares to the consultants had also previously been flagged hadn't they so the latest announcement shouldn't have caused the sp fall.

It's tempting to top up except for the whole "catch a falling knife" & "never average down" thing. Calling DMM "undervalued" just doesn't seem to do it justice. I must be missing something Mr Market wants to rub my nose in.

Cheers,

Kenny


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## ta2693 (10 July 2008)

d_crome said:


> Announcement out - can somebody with more financial gray matter than myself explain it?
> 
> Please?




I have made a call to MD. He said it is approved in previous general meeting. The 
shares is for project vendor not for private investor. i.e. we can ignore it.


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## Pimping (10 July 2008)

I bought another parcel (12k worth) at 61.5c two days ago. In DMM language that translates into a large volume trade. i suspect other Investors have taken this slump as an oppurtunity to average down. I Know I Know before you say it, I should never average down but how can you pass up this oppurtunity? Let us not forget the prospects this company has has...


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## YOUNG_TRADER (11 July 2008)

continuing on with my Fe valuation's (have looked at NSL SDL and CFE)

I thought I'd re-run the numbers over DMM

*JORC 33Mt's@55.5%Fe = 18.3M'ts Haematite @ $5/t = $91.5m

Target further 100Mt's@55.5% Fe = 55.5Mt's @ $2.50/t = $139m*
(Note although its a traget, the fact that historical drilling shows its there as well as the fact that most of the drill holes ended in mineralisation makes it very very likely to ore is there thus I am using $2.50/t EV)

*Target Magnetite 775Mt's@ 40%Fe = 310Mt's Magnetite @ 25c/t = $77.5m* (Note have used the average of 750-800Mts@35%-45%Fe and used 25c as the low case EV/t)

*Total value = $308m = $4.40 (70m shares fully diluted)*

I still firmly maintain my minimum $1.50 price target to be had and think that DMM is cheap no matter which way you look at it, however the mkt is saying YT is wrong ...... for now 

ok off to get drunk enjoy yourselves!


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## LRG (11 July 2008)

thanx YT.

i have this on my watch list now.

when i get some $'s i think i will get in on this too.

the no.'s you have analysed look promising for a good drive north in the short to medium term.


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## ans25 (11 July 2008)

Im a bit hesitant to re-top off simply because of the lack of traffc on this, such high volatility.

There were times like a month ago where when I bought I was responsible in driving it up 10-15c up...lol... and that was just spending a few k.

So until I see a bit more volume, at least 700k I will still watch closely


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## d_crome (12 July 2008)

Ans - 700k volume? Thats a fortnights trading for DMM!!

You'll be waiting sometime.

It's a spec stock that's tightly held, hence why the sp moves radically on low volumes.  More news will come and that will light a fire again and DMM will rocket north - just a matter of when not if really.

Again - DYOR as I'm not smart.


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## YOUNG_TRADER (21 July 2008)

YOUNG_TRADER said:


> continuing on with my Fe valuation's (have looked at NSL SDL and CFE)
> 
> I thought I'd re-run the numbers over DMM
> 
> ...




Amazing how SDL captures the mkts attention because it is a traders stock that churns over millions of shares, yet DMM whose the most obvious comparison to SDL fails to impress due to its illiquidity

One day DMM will have its day in the sun, of this I am confident


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## ans25 (21 July 2008)

Wow what a record, no volume today!!!

Absoultely zilch

Numero Uno

I cant believe it


----------



## ColB (21 July 2008)

> Wow what a record, no volume today!!!
> 
> Absoultely zilch
> 
> ...




At least the sellers are holding firm on 58c min offer.  Looks like we'll have to wait for a decent market release on this one.

I say Vote 1 for YT as DMM's marketing manager!!


----------



## YOUNG_TRADER (21 July 2008)

ColB said:


> At least the sellers are holding firm on 58c min offer.  Looks like we'll have to wait for a decent market release on this one.
> 
> I say Vote 1 for YT as DMM's marketing manager!!




Hmmm well, what would my payment plan be?

I want more shares but is it better for me to get "employee shares" or would it be better for me to get paid cash, then I can use my salary to buy shares on mkt? lol

Maybe DMM should consider doing a 1 for a 100 split, or better yet 1 - 1000 that way the SP would be 0.005 and draw traders from all corners of the forum world to it,

Seriously, institutions rarely look at companies under 10c, its just this percieved thing that the company is crap if its under 10c, however the closer it gets to $1 the more and more institutions will look at it, which is the exact oppostie to traders and punters, who look for the penny dreadfuls

So what DMM needs to do is get Passport Capital and other institutions serious about geting on board DMM as currently its a steal, but the only way this will happen is if they do some Broker Roadshows/Roadshows/Presentations, PR is what this company is really lacking

I still say though it will be a takeover target if it stays around these levels for too much longer, just my thoughts though


----------



## Miner (21 July 2008)

ColB said:


> At least the sellers are holding firm on 58c min offer.  Looks like we'll have to wait for a decent market release on this one.
> 
> I say Vote 1 for YT as DMM's marketing manager!!





I do support this but probably they would not be paying  enough YT to attract to this role. However  BFE has advertised for its CEO as well. Why not YT take up this role first then buy off DMM as an acquisition and push the marketing for both DMM and BFE while expanding resources base too . 

Only one thing before you (YT) start acquiring just drop us a line in ASF so that we can start buying more and apply for jobs in your company for employees options as part of salary package


----------



## JTLP (21 July 2008)

Miner said:


> I do support this but probably they would not be paying  enough YT to attract to this role. However  BFE has advertised for its CEO as well. Why not YT take up this role first then buy off DMM as an acquisition and push the marketing for both DMM and BFE while expanding resources base too .
> 
> Only one thing before you (YT) start acquiring just drop us a line in ASF so that we can start buying more and apply for jobs in your company for employees options as part of salary package




LOL

On another note:

Didn't Largresse or somebody say that the company was doing a roadshow in a few weeks (about a week ago)? Wouldn't they be a rowdy bunch on these trips :

YT...a stock split might be a good idea...just to fill those price gaps and get the ball moving a bit. It's been painful watching it thrash around like a snake!

What is the next piece of news we are expecting? JORC upgrade?

Anybody with timelines?

xoxo


----------



## YOUNG_TRADER (22 July 2008)

Hey guys,

Hmm a joint BFE DMM, lol not as crazy as it sounds,

Both companies are dirt cheap and are two of my prefered Fe exposures, I guess I like the minows with tiny mkt caps because if/when they get re-rated its many multiples ie when YML/BRM got re-rated from 15c -$3, or MAK from 20c to $2+

Maybe SDL should just take over both of these to better justify its large mkt cap?

Oh JTLP I think drilling was due to start soon, also was a mention of a capital raising to institutions or something which was meant to coincide witht he roadshow, so far I've heard nothing 

Anyone heard anything?


----------



## alankew (22 July 2008)

JTLP i have been told twice now that there is a roadsow planed "next week" but doesnt look like next week has come yet.Anyone have any fwwdback to back this up from brokers etc


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## ans25 (22 July 2008)

Alan,

Ive been hearing the word roadshow more time than "this can head towards $1.50".... but sadly where and more importantly what is this roadshow that the PR people of DMM consider?

I'm sort of with YT with DMM, that if its still around 60-70c mark in 2-3 months time then this may be up for a takeover.


----------



## Duckman#72 (23 July 2008)

Anyone a subscriber to "Africa Intelligence"?

I see they have an article released 13 hours ago online under the heading "DMC to Renovate Mbinda-Dolisie Rail Line". 

It might just be a continuation of old news but it is a recent release. It might contain more details about what is going to be involved and potential timelines. I don't have access to the article.

Cheers 
Duckman


----------



## YOUNG_TRADER (23 July 2008)

Strike (SRK) just came out with its PFS results

Interesting to compare
*
SRK Cap Ex = $2.3 - $2.5 Billion*
*
DMM Cap Ex = $200m (3Mt's p.a.) - $500m (11Mt's p.a.)**

SRK Op Ex = $16/t ore

DMM Op Ex = $22/t ore

SRK deposit = 133.5Mt's @ 59.4%Fe note this is only for Apurimac only and not Cuzco which has 500Mt's -  650 Mt's Historical at 58% Fe + 

DMM deposit = 33Mt's @ 55.5%Fe target 110Mt's - 135Mt's @ 56%Fe + 800Mt's@40% Fe targets*

All in all based on the Op Ex and considerably lower Cap Ex, DMM's Mayoko does look good, wh the mkt doesn't realise this is beyond me 

Even strike when it was $1-$1.50 was too cheap and hence attracted a take over bid, so thats my call for DMM, either it gets re-rated or it will attract predators!


----------



## Miner (23 July 2008)

Duckman#72 said:


> Anyone a subscriber to "Africa Intelligence"?
> 
> I see they have an article released 13 hours ago online under the heading "DMC to Renovate Mbinda-Dolisie Rail Line".
> 
> ...




Hi Duckman 

Africa and Intelligence - do they go together ? 

Sorry for kidding but I always wonder how could an intelligent nation accept bribery and corruption to nth degree and we can call them intelligent (for whom I do not know).

Not digging at you but more expressing my metaphor as a satire when I consider  the definition of humanity, honesty and intelligence changes  in different nations.


----------



## malachii (23 July 2008)

Miner,

Bribery and corruption are not an African thing - they are a world wide problem.  Even Australia suffers from it despite our strict laws (just look at AWB!!).  Talk to any business person large or small and they will be able to give you both subtle and blatant examples.

malachii


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## alankew (23 July 2008)

Emailed DMC this afternoon to ask about the rumoured roadshow or whether it was an urban myth,heres the response

Mr. Kew,



Thank you very much for your support and interest in DMC Mining Limited, the Company has recently conducted an Investor and Broker roadshow, and is also looking to increases its broker and institutional coverage outside of Australia. We are also continuing to discuss with brokers the strength of the Mayoko project and the growth potential of the Company.

The company is very pleased about the recent Scoping Study assessment conducted by GRD Minproc, and is looking forward to moving to production as quickly as possible.

We appreciate your feedback, if we can assist with anything further please feel free to contact me on the numbers below.



Regards



Dean Richardson

Investor Relations Manager

DMC Mining Limited

T: +61 (0) 8 9486 1909

M: +61400121612


----------



## YOUNG_TRADER (23 July 2008)

Some on mkt buying would be nice to support us! lol

Just let em know Alan that I'm doing my bit for the company, perhaps I too should get some employee options? he he he

As I said though I was very interested while reading SRK's PFS, it shows that DMM's Op Ex is amongst the lowest of the ASX Iron Ore companies and its Cap Ex for such a large project by far one of the lowest

Bring on a takeover to put this on the mkts radar, where the heck are Crosby Capital when you need em, they made me a fortune on MTN


----------



## JTLP (24 July 2008)

alankew said:


> Emailed DMC this afternoon to ask about the rumoured roadshow or whether it was an urban myth,heres the response
> 
> Mr. Kew,
> 
> ...





Thanks Al Dog.

Apparently the roadshows were all within a 200m radius of the DMC offices for fear of spending too much $$$ on marketing! 

HAR HAR HAR


----------



## Miner (24 July 2008)

malachii said:


> Miner,
> 
> Bribery and corruption are not an African thing - they are a world wide problem.  Even Australia suffers from it despite our strict laws (just look at AWB!!).  Talk to any business person large or small and they will be able to give you both subtle and blatant examples.
> 
> malachii




Dear Malachii

I do not entirely disagree what you said. Otherwise how could every John Doe could see the drug peddlars in streets of Northbridge, CBD and police men just can not find them, all suicides in jail become unresolved, police speed up the vehicle and when the people hit on tree then police gets unscathed etc.  How come all Bikies get scot free from court because no one saw anything to provide witness . 

AWB was an Australian company who bribed Iraqis and the incidence did not happen in  Australia. OK Tedi pollution was okay with BHP because it was not in Australia . That was my  point we all behave differently  when we do business in Africa, Asia (except Singapore) or Mexico. 

It is still hard to prove who are taking bribes from CIA in this country or taking from foreign investors to change the law etc, Wanneroo Royal Commission, selling cricket weather story by Mark Hughes and Shane Warne, getting tenders  etc. 

However the difference is  there is still a RULE OF THE ROAD in Australia where in Africa no one cares if you get killed on road, AID victim and probably a mere $200 can get some one's life be finished at gun point or get a bail after committing a murder. 

It is basically the level of price one pays to cross the line of morality and ethics in Africa, Mongolia,Congo and few other places  and to do the same in Australia asking rate is very high. 

In Australia the level of honesty probably prevails among 90% of the population where as probably in Africa the level of honesty prevails 10% of the population. 

No worry the amount of refugees and illegal intake of migrants with no criminal records checked and health checks, have the potential to  transform Australia into Africa in next 10 years for sure. 

(I hate to say that normally I have been correct in such predictions though personally a great failure in stock market prediction . 

In 1996 I have asked President of IE Australia and Dy Premier Colin Barnet about impending skills shortage in WA and country and to have a strategic plan to address the issue . They laughed saying Australia will never face skill shortage and now we know about it) . 

Having said that my comment was more on jest and not to upset any one as I know few of  my ex colleagues are very honest and trying very hard in African mines against the bureaucracy - so no offence taken. I do not want any controversy and if any one is feeling upset because of my earlier and present comment stated in comparing Africa and Australia -  I am sorry for my comments as well this long lecture  

Cheers


----------



## alankew (24 July 2008)

Maybe if other ASFers could email the company stating there dismay at the apparent failure of the roadshow we could get some action.Heres the email I used bruce.franzen@globemetalsandmining.com.au


----------



## d_crome (24 July 2008)

That is of course if they GET your email - they're probably trying to cut down on costs everywhere to afford the bus fare for their next road show - so they might be running on dial up at the office place! LOL

Seriously - they need a mouth piece and they need it quick.  The lads running this show know mining, they know africa - they've got an advanced scoping study and have regional "experts" on board to "assist" with local "issues".

Read that anyway you want to but bottom line is if this were 1980 - we'd be booming.

However - it's 2008 - times have changed and people are now ACCUSTOMED to receiving updates on everything ALL the time.  The market has an extreme case of ADD and if you don't continually remind it of how good you are and what you're accomplishing - you're as good as non existent.


----------



## ans25 (24 July 2008)

Hey guys is it just me or have we seen the low of DMM,

Its been pretty constant sideways now, and although theres hardly any volume I get the feeling that this baby is ready to go up now.

Im thinking of going back in


----------



## d_crome (1 August 2008)

Quarterly out - the summary looks really good actually!

Target of near 1000 Mt is on the books with a drill campaign set to start in Q3, the team is already in place (those in the know in Africa!) and what looks to be good local support.

At these prices DMM is just just ridiculously cheap.


----------



## Sean K (1 August 2008)

d_crome said:


> Quarterly out - the summary looks really good actually!
> 
> Target of near 1000 Mt is on the books with a drill campaign set to start in Q3, the team is already in place (those in the know in Africa!) and what looks to be good local support.
> 
> At these prices DMM is just just ridiculously cheap.



Yeah, nothing we really don't know except maybe that they're thinking of a share split to get some more liquidity. Also looks like they understand that marketing their company may be important to get some investor interest. Derr.


----------



## d_crome (1 August 2008)

Kennas - that's where my suprise was - the document actually looked like somebody with some level of skill in PR peiced it together...LOL.

Sad really when you find the level of poor PR in an investment you hold a source of amusement...


----------



## YOUNG_TRADER (1 August 2008)

Looks like they are picking up their PR game

*
“This is a giant step forward for DMC in bringing this potential billion tonne
Mayoko deposit into production and reaffirms the government support for
DMC’s intentions” Managing Director, DMC Mining, David Sumich said.

DMC now becomes one of the more advanced offshore iron ore development companieslisted on the ASX.*


Surely this will attract some Insto's or majors

Time will tell


----------



## Sean K (1 August 2008)

YOUNG_TRADER said:


> Looks like they are picking up their PR game
> 
> *
> “This is a giant step forward for DMC in bringing this potential billion tonne
> ...



Yeah, nice picture and everything. It's like the signing of an independance or peace treaty document.

The Congo boys seem to be behind them.

“This is an opportunity for us to warmly thank our friends at DMC Iron Congo.
This signing of the Convention gives them an opening to continue research
work with other related activities and, as they have also mentioned, there are
a number of positive actions they have taken for the population and to favour
the social and economic development of our country”

“We are pleased that DMC Iron Congo will accompany us on this venture
designed to give a practical dimension to the aspirations of the President, so
as to give strong mines of Congo, like Mayoko, their rightful place in the
economy of our country and their true place in the workings of the world”

I wonder if they all did the Congo around the room after the signing?


----------



## Sean K (1 August 2008)

kennas said:


> I wonder if they all did the Congo around the room after the signing?



Here's the board of directors and the Congalese ministers celebrating the signing of the peace accords.


----------



## ans25 (1 August 2008)

HaHaHa that was a crack up.

But yeah everything is good except no one knows abt it... hate to keep harping on it.

Cmon Market wake up!!!


----------



## J.B.Nimble (2 August 2008)

Hmmm.. cash at hand 1,022k AUD, forecast cash burn for next quarter 300k AUD (not sure I believe that). Might be a cap raise on the way before too long. In this market they will need every bit of PR skill they can muster...


----------



## Sean K (4 August 2008)

DMM in Pure Speculation in The Australian:

Meanwhile, DMC Mining (DMM) used its quarterly to take a swipe at all those fashionable iron ore projects in Western Australia. DMC's Mayoko deposit in located in the Republic of Congo (the less chaotic of the Congos, across the great river from the Democratic Republic of same). 

Of course, there is sovereign risk in Congo Brazzaville but not all that much, the report says. But all those Midwest players are constrained by the fact that the railways and the new Oakajee port have yet to be started, let alone completed. And the hematite ones back here are small, typically between 5 million and 15 million tonnes (compare Mayoko at 33 million tonnes of hematite with possibly 800 million tonnes of magnetite), low production rates of between 1 million and 2 million tonnes a year (DMC is planning 11 million tonnes a year) and the need for long road haulage even when a railway is built. Here's DMC's trump card in its view: an existing railway goes right by Mayoko to the port of Pointe Noir. 

The market will wake up one day. 

We hope.


----------



## YOUNG_TRADER (5 August 2008)

Glad someone else see's the value here, so I ain't crazy lol

The company really don't need to do a share split, I don't really want DMM to become an ADY trading dog, would much prefer the Insto's get on and it become a MRU Insto stock

But they have to do something, even a bloody cap raising would be good as then they would have to go to a broker and may get coverage out of it


----------



## Sean K (6 August 2008)

LN,

Got a timeline to development handy?

PFS
BFS
DFS
Development
Production

I haven't seen one anywhere. 

Just this in the quartely:

*EXPLORATION PROGRAMME*

The exploration programme to define additional DSO tonnages includes the following;
● Gravity survey. Scheduled to be completed June 2008
● Pitting and trenching. On selected targets within the exploration zones.
● Drilling. DMC has commenced discussions with an in-country drilling contractor for 2 dual purpose drilling rigs to start the 20,000m drilling programme by August 2008.


I ssume they will announce when they have the rigs, or they're drilling, so not yet. Would be nice for them to get a wriggle on...

I assume this will be covered in the PFS:

*REQUIREMENTS TO ADVANCE*

The key requirements to advance the project to the next stage are:

● Geological resource definition for both the haematite and magnetite
● Metallurgical test work covering ore types and spatial location within the ore body
● Marketing information on the minimum product specifications required for sale
● Detailed examination of rail and port requirements
● Agreements from the rail and port authorities for shipping ore


I notice with their exploration potential they're not actually covering all their EPLs. By the gravity survey in the quarterly looks like they have much more potential. See area in blue circles. Golly, if that is all magnetite then crikey!

Key now is moving forward I suppose. They have enough defined to just start digging!!


----------



## Sean K (8 August 2008)

Cripes, sentiment and perception of where commods and fe is going is off the scale.

Can't believe this is sitting on a great initial JORC with such potential, and logistics pretty solid compared to the middle of Australia, and the MC is down to $25m or something. 

Once the dust settles and people stop hiding under their beds for fear of  alien attack, it's gotta be re-rated....


----------



## YOUNG_TRADER (8 August 2008)

People are panicking and running for cover, they forget that Iron Ore and Coal are bulk commodities that are priced on yearly contracts and that both have had massive 80%-300% rises this year locked in till April/May next year

Also what I am only now starting to appreciate is it doesn't matter how big the resource, infrastructure is the key, the more of it thats already there the more likely you will cathc this boom and be able to mine something, as opposed to waiting for the next


----------



## Sean K (8 August 2008)

YOUNG_TRADER said:


> Also what I am only now starting to appreciate is it doesn't matter how big the resource, infrastructure is the key, the more of it thats already there the more likely you will cathc this boom and be able to mine something, as opposed to waiting for the next



Yep, and that's why these guys will be ahead of the pack once they get a reserve, some finances sorted, and some off take agreements. In whatever order. They are way ahead of some of the fe juniors in the Pilbara that will have gigantic capex, native title, etc etc...


----------



## Largesse (11 August 2008)

it would appear that we have a new CEO. Mr Dio Dio.
Significant experience, apparently BHP/Rio. Some 25 years of experience.

but still no price appreciation.... 


sigh


----------



## dubiousinfo (11 August 2008)

DMM announced today that they have appointed the new Chief Executive Officer.  

11 August 2008
ASX/MEDIA ANNOUNCEMENT
APPOINTMENT OF CHIEF EXECUTIVE OFFICER




> 11 August 2008
> ASX/MEDIA ANNOUNCEMENT
> APPOINTMENT OF CHIEF EXECUTIVE OFFICER
> DMC Mining Limited is pleased to announce the commencement of Mr. Edoaldo (Aldo) Di Dio
> ...


----------



## d_crome (11 August 2008)

Its just a negative market sentiment for materials right now - which makes DMM an amazing bargain at this time.

The immediate "softness" in materials prices is something I can't understand, though I'm betting that the short term softness will be exactly that - short term.

So DMM to me looks awesome - things just keep lining up, good resource that's got a massive upside for the current JORC upgrade drilling, withing a VERY short distance of working, existing transport infrastructure, previous appointments of "regional" experts to assist in minimizing any "africa" factors and now a CEO appointment of a highly experienced resource individual.

Awesome - all lining up nicely.

Again - DYOR as I'm officially a nobody with zero financial ability.


----------



## alankew (11 August 2008)

Interesting to note that Double D as he is known to his friends has experience in Oil,Gas and Power.Ann on 3rdJuly involved the appointment of another key person with Oil experience which was commented upon here.Might just be that they have gained some key personel who just happen to have oil experience or maybe they have another reason


----------



## grace (11 August 2008)

alankew said:


> Interesting to note that Double D as he is known to his friends has experience in Oil,Gas and Power.Ann on 3rdJuly involved the appointment of another key person with Oil experience which was commented upon here.Might just be that they have gained some key personel who just happen to have oil experience or maybe they have another reason




Alan, are you disclosing a friendship with Double D?  If so, I look forward to plenty of updates from you over the course to mining.


----------



## Go Nuke (11 August 2008)

Hahaha Grace

It reads like they have a good man for the job.

I guess he must like what potential lies ahead with DMC and am alittle suprised that the sp didn't move up with this announcement.

Your spot on D crome, its this weakness in the metals prices that are giving the resource stocks a hammering.
I was looking forward to todays action when i saw that the DOW was up 300+ points last week....instead Ive lost heaps today.

Not prepared to take a real loss..though id love to throw that money into DMC

Oh well..cant have everything.


----------



## Miner (11 August 2008)

grace said:


> Alan, are you disclosing a friendship with Double D?  If so, I look forward to plenty of updates from you over the course to mining.




By any chnce the Holy DD could be our own YT ?

I checked up at FMG office few hours ago seeing his credential having worked in FMG  just in case some one could give me any tip about how wonderful he has been. Unfortunately people I contacted  could not remember DD there ! That could be also he might have been engaged as a consultant for another sub contractor.


----------



## poretti (11 August 2008)

the phrasology used in his intro seemed to suggest that he worked on a contract basis with FMG (among the others), definitely would be phrased differently if direct employment


----------



## Sean K (21 August 2008)

Drilling was supposed to start in August. No ann of that yet. Do we assume they've started? Must get on the horn...

Been lots of volume of this lately....lol

Sellers are controlling the entire market at the moment. Probably lucky there's be no volume down the buy side as some punters would have taken the chance to go to cash. This could have easily dropped back into the 30s, but has held up ok. Touch wood. I'm holding for the minute assuming fe plays will be one of the few commods to survive armageddon.


----------



## Sean K (25 August 2008)

Is this an encouraging ann?

I'm not quite up on the lumps and fines differencial and these initial metallurgical results.

Any thoughts?


25th August 2008
ASX/MEDIA ANNOUNCEMENT

Preliminary Screening / Beneficiation Results – Mayoko Iron Ore Project

HIGHLIGHTS
● Preliminary metallurgical testwork encouraging
● Impurities appear concentrated in the finer fractions
● Results indicate that the JORC resource of 33MT @55.5% could be beneficiated via crushing and dry screening
● The lump product has a reduced Silica content by approximately 40% from the average as a result of the dry screening process
● Results support DMC’s “base case” DSO production scenario of 3Mta for 11 years, based on the 33Mt JORC resource previously reported


I assume a dry screening process is relatively simple compared to whatever else...


I happened to notice POL bring out an ann this morning on some future discovery potential.

They currently have 200m ish full diluted @ .26 = $52m 
And have about 15Mt @ 55% plus.

DMM have about 60m @ .57 = $34m ish
And have 33Mt @ 55% plus.
And probably more exploration upside.

Confused as hell.


----------



## alankew (25 August 2008)

*Re: DMM - DC Mining*

Dry screening-sounds like sieving basically,wouldnt imagine it would cost too much.Any Geos help here


----------



## Go Nuke (1 September 2008)

Most of the sellers were taken out today.

I'm thinking its based on that "Nearology" theory with SDL up 15%+ today?

Still a 20%+ rise in the price so far today might draw some attention this way

Was there any announcements due?


----------



## d_crome (2 September 2008)

Nuke - I'm thinking that general market sentiment is improving for the spec end - my entire watch list yesterday was green.

This is potentially due to the fact that I _believe_ that the world's opinion of a global recession is diminishing AND also the fact that most are still wary of the US, though it looks like the US will suffer stagflation rather than a recession.

DMM is a VERY tightly held stock, and I wouldn't be surprised to see this jump another 15 to 20% tomorrow given the low volumes traded.

With the scoping study out, infrastructure in place, a team recruited and an expanded JORC drilling operation in place - DMM is certainly ticking a lot of boxes for me.

AGAIN - DYOR on this one - I'm not accountable for anything you do with your own money!


----------



## Go Nuke (2 September 2008)

> AGAIN - DYOR on this one - I'm not accountable for anything you do with your own money!




lol. You don't have to worry about that mate.

Ive got no money to spend. Its all sitting stocks with badly beaten share prices...like Bannerman.

Flat broke (for investing) and struggling to save for a house, so as much as I'd like to buy more as this is a great time (almost perfect for loading up on bank stocks) but can't.

Goodluck to you too


----------



## quarky (15 October 2008)

last 6 months of DMM...

i should have sold it in June (at over a $1) 


anyway, global markets don't look good at the moment and it'll be some time before DMM rises again to my $0.75 buying...and maybe if/when companies look toward investing in Africa.


----------



## d_crome (17 October 2008)

Quarky - I've shelved my interests in DMM until logic returns - god knows when that'll happen - however if you'll note that the last ASX announcement wanted to sure up the directors benefits in the event of a TAKE OVER.

Given their proximity to infrastructure and increasing JORC'd resource program - maybe they know something we don't?


----------



## YOUNG_TRADER (17 October 2008)

Interesting take D Chrome, what exactly was it in the announcement that makes you say "directors shored up to benefit in case of takeover"

p.s. I am in the exact same boat as you, all of my promissing juniors have been slaughtered mercilessly, but hey so have the CNP's the BNB's the BHP's the RIO's everyone so its all relative I guess


----------



## J.B.Nimble (18 October 2008)

YOUNG_TRADER said:


> Interesting take D Chrome, what exactly was it in the announcement that makes you say "directors shored up to benefit in case of takeover"
> 
> p.s. I am in the exact same boat as you, all of my promissing juniors have been slaughtered mercilessly, but hey so have the CNP's the BNB's the BHP's the RIO's everyone so its all relative I guess




I spotted it too. They have applied to the ASX to vary the terms of 3,000,000 unlisted options to include a term "that in the event of a takeover or change of control in the Company, the options should vest in the holder immediately." Could be just a smart bit of forward thinking to look after their own best interests but perhaps there is a sniff of activity here. At these prices you would have to expect bigger fish to be eyeing up the minnows...


----------



## Sean K (18 October 2008)

J.B.Nimble said:


> At these prices you would have to expect bigger fish to be eyeing up the minnows...



Their MC is down to $20m ish.

Incredible to think with the resource base thay have and could have.

Obviously much lower prices for IO are being factored in and lack of credit. 

I didn't see the Intersuisse report slapping a spec buy on them.

Here's the summary:

DMC Mining Limited Speculative Buy

(ASX Code: DMM) www.dmcmining.com.au Price $0.50 August 2008

• GRD Minproc Scoping Study on Mayoko iron ore deposit in the Republic of The Congo indicates annual revenue potential of between US$177 million and US$308 million based on an 11 million tonnes per annum (mtpa) operation at
long term prices.
• The study considered an initial 3 mtpa direct shipping ore (DSO) project ramping up to 11 mtpa DSO hematite within four years. Capital cost estimates are US$198 million for the initial operation and US$486 million for the full 11 mtpa project. Operating costs are estimated at US$22.5 per tonne.
• A 3 mtpa DSO magnetite plant would follow as Stage 2 giving the project longevity.
• Initial Mayoko iron ore JORC resource of 33 million tonnes averaging 55.5% iron. Geological modelling has outlined a target of 110 million to 135 million tonnes of hematite enrichment at 55% to 58% iron and 750 million to 800
million tonnes magnetite at 35% to 45% iron.
• Existing railway located within 5 km of project linking to deep water port at Pointe Noire and European markets.


----------



## d_crome (19 October 2008)

YT - good to have you back mate, granted you certainly didn't miss anything too enjoyable in your absence.

As Nimble also pointed out - the announcement looks to be a cover for the existing directors for their own golden parachutes should they be "unfortunate" enough to be a TO target.

In times of public scrutiny of executive remuneration packages one could almost laugh at the timing of that announcement - however given the loss that most here are sitting on - to me this indicates a silver lining that indeed when the dust settles and the smoke clears from the fear mongers in the press that are selling covers of their monthly magazines by instilling fear (sorry for the personal rant on what I see as a simple problem with human perception) then we'll see what goodies the DMM team have been working away on *cough* upgraded JORC *cough*.

For me the true interest is in China - we've really heard VERY little out of them since the close of the Olympics - and given how shrewd an operator they are I'm almost willing to bet they're playing poker right now with world commodity prices - how do we know how "bad" things are in China?  I'm willing to bet (as most of us have by holding shares such as DMM) that the Chinese are stating they're in financial difficulty/economic slow down to influence a reduction in the prices they more than willingly agreed to 6 months ago for I/O etc.

And if the Chinese ARE in such dire straights - I do believe that it's India's turn to take centre stage of the worlds economy - they've been applying extremely conservative financial practices that it's now their turn to be the cashed up ones looking to buy.

Either way I'm holding - to sell right now would just be a very short sighted decision given the benefits of what DMM previously HAD - let alone the additional value a revised JORC might entail.


----------



## kenny (19 October 2008)

Wish I could vary the terms of options that I hold like that. Do they have to seek shareholder consent at all?

I have to agree that it is a very astute move on their part.

Not too sure about India taking the baton from China just yet. The Chinese haven't finished I suspect despite these headwinds.

Speaking of which, India is not immune either. They have an inflation rate over 11% despite the 7%+ GDP growth.

Here's some recent news links for the interested.

Cheers,

Kenny


http://economictimes.indiatimes.com/News/Economy/Indicators/Growth_slowdown_major_concern_rate_cut_needed_Economists/articleshow/3615141.cms

http://indianeconomy.org/2008/10/16/the-indian-political-business-complex/#more-690

http://www.nytimes.com/2008/10/17/world/asia/17india.html?em


----------



## Sean K (27 October 2008)

What idiot sells a handful of shares to tank an sp 50%.



Bloody desperate taxi drivers needing money for some petrol.

Idiots!


(Maybe the question should be, who's the bigger idiot for still holding )


----------



## JTLP (27 October 2008)

LOL...well someone wants this bad boy smashed today...they just sold into the 15 cent shares! Current bid at 10.5...market cap at a HUGE $3M =).

What am I missing here? The infrastructure already in place? The ore waiting to be shipped out?

Kennas give me a High-5 big man...im holding as well LOL.

Only needs 1 person to buy 120,000 to make this look half decent 

JTLP


----------



## JTLP (27 October 2008)

Oh and do my fingers want to get dirty or what...the way this thing moves and shakes...mmm

I do have a question though...why dont they do a share split to limit this volatility?

And why aren ´t directors buying! Confidence boys...


----------



## Go Nuke (27 October 2008)

Very good point JTLP!
I would feel better seeing directors buying in at these levels.
Maybe they are just like some of us atm, up to their eyeballs in debt or dont have any capital to play with because its tied up in investments already?
A few months back i would have been shocked to see a price movement like that, but hey we are living in times where the DOW goes up 900 points one day and down a few hundred points the next.


----------



## jonojpsg (27 October 2008)

JTLP said:


> LOL...well someone wants this bad boy smashed today...they just sold into the 15 cent shares! Current bid at 10.5...market cap at a HUGE $3M =).
> 
> What am I missing here? The infrastructure already in place? The ore waiting to be shipped out?
> 
> ...




He he, I'd love to have the cash to be able to take out the buy side and see what happened.  The feeling of power over the market


----------



## quarky (28 October 2008)

kennas said:


> What idiot sells a handful of shares to tank an sp 50%.
> 
> 
> 
> ...



me. 
i'm still holding.
i bought a small parcel at $0.74, many months ago.
saw it rise to $1.10 but didn't sell.

now it's at AU$0.15 ! 

my financial woes continue...


----------



## Nuke (10 November 2008)

http://www.tradingmarkets.com/.site/news/Stock%20News/1958896/

LONDON, Oct 21, 2008 (Dow Jones Commodities News via Comtex) -- FCX | Quote | Chart | News | PowerRating -- Congo's review of mining licenses is being held up a change in government that hasn't yet been completed, the chief executive of Freeport McMoRan Copper and Gold Inc. (FCX) said Tuesday.Speaking on a conference call, Richard Adkerson said the Congo prime minister was working to name a new government. The country's president Joseph Kabila, appointed Adolphe Muzito as prime minister on Oct. 10 following the resignation of Antoine Gizenga at the end of September. 

Adkerson said he was confident that its license to operate in Congo was binding to both Freeport and the government, as well as fair to the country in terms of taxation and royalties. 

Freeport operates the Tenke Fungurume copper and cobalt project, which is slated to start production in the second half of 2009. 

Around 21 mining companies active in Congo could lose their licenses following a government review, and may be forced to compete for them from scratch. Around 26 other companies are renegotiating their licenses, while 14 miners look set to get the green light to continue with their existing contracts. 

Freeport has spent around $1 billion of a total $1.75 billion estimated in a capital cost review for Tenke in April.


----------



## Sean K (10 November 2008)

Nuke said:


> http://www.tradingmarkets.com/.site/news/Stock%20News/1958896/
> 
> LONDON, Oct 21, 2008 (Dow Jones Commodities News via Comtex) -- FCX | Quote | Chart | News | PowerRating -- Congo's review of mining licenses is being held up a change in government that hasn't yet been completed, the chief executive of Freeport McMoRan Copper and Gold Inc. (FCX) said Tuesday.Speaking on a conference call, Richard Adkerson said the Congo prime minister was working to name a new government. The country's president Joseph Kabila, appointed Adolphe Muzito as prime minister on Oct. 10 following the resignation of Antoine Gizenga at the end of September.
> 
> ...



Wrong Congo GN.

DMM are in the Republic of the Congo, whose President is Denis Sassou Nguesso.

The bad Congo is the DRC and is to the south and is almost at war with Rwanda...


----------



## Go Nuke (10 November 2008)

Ummm actually Kennas that wasn't me..lol.

Close...but not me

And yes...wrong Congo nuke. Again close...but wrong one


----------



## Nuke (11 November 2008)

yep, sorry about that! I only realised I got the wrong Congo after posting!! Good news for DMM then!!.


----------



## Sean K (18 November 2008)

Who is the idiot taxi driver that sells 400@.145 and 4600@.12 to tank the price 17%.

Punters are desperate!


----------



## eclectic_nish (18 November 2008)

Okay....then why should i hold ?

Someone is selling prob coz they dont see the value in DMM. What has the company done in the last 2-3 months ? When are they going to drill?
Looks like they are just rehashing old anns.

Anyways i hold for the long term...but i wish i didnt.


----------



## Sean K (25 November 2008)

I'm not sure how DMM is going to make it through the quarter unless they get a steel maker on board to chip in some cash for a share of the company.

They spent $1.4m last quarter and had $1m left in the bank. So, you'd have to assume they're trying to get some money out of a bank or need to go JV ish. 

MC down to about $10m ish...


----------



## Sean K (28 November 2008)

AGM preentation out and they're still pretty bullish on going forward, even with the current events. 

"Extremely confident in securing funding"

However as we know, they're just about tapped out.

Need some smart moves to save themselves from mothballs.


----------



## Datsun Disguise (28 November 2008)

kennas said:


> AGM preentation out and they're still pretty bullish on going forward, even with the current events.
> 
> "Extremely confident in securing funding"
> 
> ...




I reckon it's stories like this that have contributed to the abandoned BHP/RIO deal. There's going to be defined, maybe even partially developed assets coming on to the market for cheap. 40bn in transfered debt could buy a lot of quality dirt over the next couple of years....

What's DMM's cap now?  $5-7m? Let's see how much I can find under the couch......


----------



## Miner (9 December 2008)

DMM is under trading halt announced after market closing and will remain until Thursday 

Before closing DMM shot by about 14.9% with a very low volume trade however 

Looks like some lady luck for the investors after long wait.

Hmm wait and see.


----------



## Sean K (9 December 2008)

Miner said:


> DMM is under trading halt announced after market closing and will remain until Thursday
> 
> Before closing DMM shot by about 14.9% with a very low volume trade however
> 
> ...



Hmm, not sure if it's good news 'pending finalization of financing arrangement'. Could go the nother way 'we have no financing arrangements' eeeek. Finger crossed some steel mill is chipping in funds for offtake or something....


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## JTLP (9 December 2008)

kennas said:


> Hmm, not sure if it's good news 'pending finalization of financing arrangement'. Could go the nother way 'we have no financing arrangements' eeeek. Finger crossed some steel mill is chipping in funds for offtake or something....




Kennas...the way I am reading this is a good thing.

Finalization of Financing agreement sounds like they just need to sign, seal and deliver something to the market. Maybe i'm getting my hopes up but to me it sounds the goods (unless its a cap raising to shareholders...which actually wouldn't be that bad as it would mean liquidity in the stock)

JTLP


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## Sean K (9 December 2008)

JTLP said:


> Kennas...the way I am reading this is a good thing.
> 
> Finalization of Financing agreement sounds like they just need to sign, seal and deliver something to the market. Maybe i'm getting my hopes up but to me it sounds the goods (unless its a cap raising to shareholders...which actually wouldn't be that bad as it would mean liquidity in the stock)
> 
> JTLP



Yes, sounds like they are getting some money, but under what arrangementents? Let's hope the market perception of whatever deal is positive for holders.


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## Sean K (11 December 2008)

kennas said:


> Yes, sounds like they are getting some money, but under what arrangementents? Let's hope the market perception of whatever deal is positive for holders.



Well, they've got cash, but at what cost? Geeesh!!

Beggers can't be choosers I suppose. 

At least they're digging holes!



10th December 2008
ASX/MEDIA ANNOUNCEMENT

DMC secures A$2 million funding facility

HIGHLIGHTS
• Secured Convertible Note Deed completed
• DMC fully funded for the completion of the 2009 drilling
programme at the Mayoko Iron Ore Project
• The 2009 drilling programme is part of the pre-feasibility study which has already commenced.

SUMMARY

DMC Mining Limited (“DMC”) is pleased to announced it has entered into a secured convertible note agreement with Dempsey Resources Pty Ltd (“Dempsey”) Under the terms of the agreement, Dempsey has the right before the repayment date of 10th December 2009 to convert the Note into ordinary shares in DMC, subject to the approval by DMC shareholders. The conversion price will be the lesser of $0.10 and, the volume weighted average closing price of the DMC’s Ordinary Shares as quoted on ASX over the last five (5) trading days immediately preceding the delivering of a Conversion Notice by Dempsey to DMC. DMC has agreed to pay interest at a rate of 12% pa on the convertible note. In addition, in consideration to Dempsey for subscribing for the Note, DMC has agreed to issue Dempsey 5,000,000 options which can be exercised at $0.15 on or before 30th June 2010.


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## JTLP (11 December 2008)

Beggars can't be choosers...you are right Kennas...but they can f*&kin aim higher then that.

10 cents? 5 mil options w/ exer at 15 cents? Interest on loan?

It's also only $2 mil worth...why didn't they go for something a bit more substantial?

Sigh at least they do have cash to get them through drilling...but it looks like this one won't be going anywhere for a while.

Does anybody know when the Pre-Feas will be completed?

Who's bottom drawer is getting mighty stuffy???


----------



## Go Nuke (11 December 2008)

LOL..Mine is JTLP.
Any short term holds I had became long term investments looooooong ago

Yeah 12% interest..ouch.

I wonder if YT is still holding a bunch of these??


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## tigerboi (12 December 2008)

Notwithstanding the tight money markets atm, due to the railway i always thought these guys were a bunch of dreamers(see the dmm thread at asf).

bringing in grd minproc(mine engineers not railway builders)instead of downer edi to assess the railway was suss to me.

you need to read the railway report closely(from asf)

The rail system is well suited for the exploration and construction phases of the project. It can be used
“as is” with no modifications for these stages of the project. The CFCO can supply transportation
services for the mobilisation of exploration equipment and supplies to site, using their existing diesel
locomotives and freight wagons. During construction the CFCO can facilitate the transportation of
break-bulk and containerised equipment, fabricated structure sections and consumables.


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## tigerboi (18 December 2008)

tigerboi said:


> Notwithstanding the tight money markets atm, due to the railway i always thought these guys were a bunch of dreamers(see the dmm thread at t$).






tigerboi said:


> bringing in grd minproc(mine engineers not railway builders)instead of downer edi to assess the railway was suss to me.
> 
> you need to read the railway report closely(from t$)







tigerboi said:


> The rail system is well suited for the exploration and construction phases of the project.






tigerboi said:


> it can be used “as is” with no modifications for these stages of the project.





tigerboi said:


> The CFCO can supply transportation
> services for the mobilisation of exploration equipment and supplies to site, using their existing diesel
> locomotives and freight wagons. During construction the CFCO can facilitate the transportation of
> break-bulk and containerised equipment, fabricated structure sections and consumables.




Whats the thoughts of these guys?not much cash for the project as the $2m wont last long only 80% owned,the railway was always going to be their achilles' heel...after seeing the state of the railway line i never believed they could even haul 3mt on that line in fact i called them a bunch of dreamers.

They need to get the resource upgraded to attract money to redo the railway but anyone stumping up the cash will want control of the remaining 80%... i reckon they will sell the whole 80%...tb


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## d_crome (18 December 2008)

Tiger - mate this is all about timing at this point in time.

DMM currently has a defined JORC resource however I believe that their current drilling program to increase this resource is in the works - hence this 2 mil is pretty much the life line they need to get to completion.

I'm estimating in approximately 3 to 6 months you're going to see a more resurgent China and India - this will be the key for the resource stocks - and with that demand for construction resources will increase.

Hopefully DMM can time their public release of the JORC and the potential market recovery.

Again - I hold and wait - as they say, it's only a loss when you sell!


----------



## Go Nuke (30 December 2008)

So what are peoples thoughts on the M.D of Cape Lambert joining the board of directors?

Just another job?
CFE is certainly looking in that region for cheap IO hopefuls.


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## Justthinkin (30 December 2008)

Nuke, my guess it's a good thing but I would compare it more with a transitionary step... for love or money I cannot see DMM being in a position to repay the $2.0M next Dec without some extraordinary good luck or extremely dilutionary capital raising...

Good luck today... skinny market and no news


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## tigerboi (3 January 2009)

d_crome said:


> Tiger - mate this is all about timing at this point in time.
> 
> DMM currently has a defined JORC resource however I believe that their current drilling program to increase this resource is in the works - hence this 2 mil is pretty much the life line they need to get to completion.
> 
> ...




i understand your optimism you gotta hang on but from the time i saw the state of the railway i knew they where a bunch of dreamers...

they need a much bigger resource to secure much more funding for the railway & they only own 80% of the project...i still cant see them firstly getting an upgraded resource & therefore the funding...

hope you do well...tb


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## Sean K (3 January 2009)

tigerboi said:


> i still cant see them firstly getting an upgraded resource & therefore the funding.



No resource upgrade potential tb?

By the companies guestimate, they have some figures higher than the present I recall.

If there is a case for a resource upgrade, then your point regarding funding does not follow.


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## tigerboi (3 January 2009)

thats right kennas i dont believe they will get enough of an upgrade to get an investor to stump up the cash...

thats my point they need a bigger resource to attract funding for the whole project re:

big enough upgrade

attract investors

upgrade 1960's railway to 2010 standards

i dont think they will get the cash...


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## Sean K (3 January 2009)

Yeah, I agree they will need a huge upgrade, or perceived potential upgrade to create a mine.

I don't know enough about the rail line and have just read the DMM anns regarding it.

Seems it will need to be upgraded, but at what cost?

Perhaps by the time they are moving into production world economics may have spun?

Bit of a wait now.....


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## tigerboi (3 January 2009)

*Re: DMM=a bunch of dreamers*

kennas mate i work in the transport industry my family has been in the game for over 107 years,this is my area of expertise...my cousin is a train driver for pac nat...i sent him the pics of the line dmm want everyone to believe they will cart 3mtpa on...

i said cuz what about this mob...he laughed his head off...
the clincher for me was bringing in grd minproc(mine engineers) instead of downer edi(train/track builders)to assess the track...also they did not inspect the entire length,they use 2 types of grade 46 & 50kg,the gauge is small = small wagons,less weight...

kennas cop a fair dinkum tip...1.the entire railway must be upgraded,2.they are a bunch of dreamers.

remember this from the scoping study which no one else took the time to carefully study..._The rail system is well suited for the exploration and construction phases of the project._

_go check out the pics of the railway & tell me they will get 3mtpa(150+ trips)on it..._

_imo $1.00+ was a good opportunity to get out in front...tb_


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## Sean K (7 January 2009)

*Re: DMM=a bunch of dreamers*



tigerboi said:


> kennas mate i work in the transport industry my family has been in the game for over 107 years,this is my area of expertise...my cousin is a train driver for pac nat...i sent him the pics of the line dmm want everyone to believe they will cart 3mtpa on...
> 
> i said cuz what about this mob...he laughed his head off...
> the clincher for me was bringing in grd minproc(mine engineers) instead of downer edi(train/track builders)to assess the track...also they did not inspect the entire length,they use 2 types of grade 46 & 50kg,the gauge is small = small wagons,less weight...
> ...



Yes, wish I had sold more over a $1.00.

We seem to have some conflicting detail on the rail line. Personally I haven't stood on it, and I defer to your cousins train driving experience in assessing the capability of the line to haul some rocks, over GRD.

Some quotes from the scoping study:



> Existing rail capable of transporting 11Mt/a with minor upgrades.






> it became clear from investigations of the infrastructure; (power; rail and port) that these facilities were largely in place






> The existence of an operating rail line within 3-5 km of the proposed mine site raises the possibility of bringing the mine into production within a short time frame.






> As the rail infrastructure to transport the ore to port is substantially in place processing rates of up to 3 Mt/a could be comfortably accommodated at start-up.






> it is currently used for passenger and freight services and was used previously to transport ore. As a consequence major repairs are not expected.






> The initial evaluation indicates the line is capable of carrying 11 Mt/a.




Your single quote:



> The rail system is well suited for the exploration and construction phases of the project




Followed by:



> Extensions to the rail line are required for the production phase. A rail loop of approximately 5 km will be built for the 3 M t/a start-up during Stage 1A construction. This will link into the northern rail line in the vicinity of Mayoko and extend to the processing plant.




Of course, I expect capex to blow out as it almost always does, and one of those things may be improvements to the rail line. 

But, it's not a war stopper at this stage on the surface of it. Nothings a certainty of course, and there's a long way to go for this to be feasable.

What is a war stopper at the moment is if IO prices tumble to well below Opex. I'm expecting a year or so of depressed prices before the world recovers and Chindia continue on. They'll need some iron for that.


----------



## tigerboi (11 January 2009)

*Re: DMM=a bunch of dreamers*

kennas the railway line will have to be upgraded to modern standard,as ive pointed out grd minproc are not railway engineers & do not have a railway division like downer edi & finally the entire railway was not inspected...

i understand your optimism with your quotes there but the infrastructure is 1960's...go look at the quotes & youll find words like,possibility,could be,indicates...

just wondering have you seen a photo of the railway line?...tb


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## Sean K (11 January 2009)

tigerboi said:


> kennas the railway line will have to be upgraded to modern standard,as ive pointed out grd minproc are not railway engineers & do not have a railway division like downer edi & finally the entire railway was not inspected...
> 
> i understand your optimism with your quotes there but the infrastructure is 1960's...go look at the quotes & youll find words like,possibility,could be,indicates...
> 
> just wondering have you seen a photo of the railway line?...tb



Yes, I've read the words and seen the photos just as you have. Neither of us have stood on the line, and your cousin hasn’t either. 

Back to your key quote, again:



> The rail system is well suited for the exploration and construction phases of the project




Which in context looks poor, but you failed to include the rest of the paragraph, as I did above, which said:



> Extensions to the rail line are required for the production phase. A rail loop of approximately 5 km will be built for the 3 M t/a start-up during Stage 1A construction. This will link into the northern rail line in the vicinity of Mayoko and extend to the processing plant.




An extension of 5km ….

Yes, I agree, would have been good to bring in a rail special specialist to assess the rail aspect, but GRD do a lot of mine infrastructure development work. I’m in the process to see what they’ve done in terms of rail, but I’m sure it’s just prelim stuff like this is. Prelim work. In the end, some aspect of the project may fail, and logistics may be it. However, I’d be more concerned about the effect of the Credit Crisis and long term contracted IO prices right now. All interlinked of course, but these guys already have an established rail link, free to use with upgrades required, which beats the mid WA wannabes on a few levels at this time.


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## tigerboi (11 January 2009)

*Re: DMM-railway must be upgraded*

not talking about the 5km loop to the mine thats easy...talking about the rest of the line...

here is a pic of the narrow gauge slated to take 11mtpa remember without an upgrade...& heres your narrow gague wagons as well
imo i think there has been abit of a con job going on,good luck...tb


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## d_crome (12 January 2009)

*Re: DMM=a bunch of dreamers*



tigerboi said:


> kennas the railway line will have to be upgraded to modern standard,as ive pointed out grd minproc are not railway engineers & do not have a railway division like downer edi & finally the entire railway was not inspected...
> 
> i understand your optimism with your quotes there but the infrastructure is 1960's...go look at the quotes & youll find words like,possibility,could be,indicates...
> 
> just wondering have you seen a photo of the railway line?...tb




TB - not that I doubt your statements, however I do believe that most of the rail infrastructure used throughout India and Africa for both commercial and industrial use were constructed well before 1960 by the then European Colonial powers.

India is running on not only rails, but ENGINES that were built over 200 years ago.

It will be interesting to see how this plays out, but I definitely appreciate an alternative point of view.

KENNAS - what's your take on the 2 Mil from CFR and the loan conditions that were placed upon DMM?


----------



## Sean K (12 January 2009)

*Re: DMM=a bunch of dreamers*



tigerboi said:


> i understand your optimism with your quotes there but the infrastructure is 1960's...go look at the quotes & youll find words like,possibility,could be,indicates...
> 
> just wondering have you seen a photo of the railway line?...tb



Also, I am no more or less optomistic (as you say) on this than any other stock on the ASX. I see things as they are. 

The quotes I've provided are just that - just about all of the quotes I could find (good or bad) related to the rail line. You have made your best attempt to pick one quote out of context to define the entire rail infrastructure, which is clearly a biased approach. For some reason you are intent on downramping DMM by cherrypicking aspects of the Scoping Study, which when examined are clearly incorrect and show you to be extremely biased, for whatever reason. 

1960s infrastructure? Like a 40 year old rail line is unserviceable?

'Possibility', 'could be' ?? Yes, they should use those terms, but I can't be bothered looking for them right now, but I hope they have used them. Unlike you, who's using definatives on an exploration project. 

Yes, I've seen the photos like anyone else who's researched this. Thanks for reposting them. Yes, it's a standard guage rail line, what you use for carrying rail carriages with stuff in them. Thanks. Maybe they could get someone out there with a whipper snipper to make it nicer for you.

Chart wise this is a disaster for long term buy and hopers and if the IO prices continue to suffer this will also.

Just because you drive a truck and your cousin drives a train clearly does not make you the king of infrastructure development, nor the king of assessing the future potential of iron ore exploration companies.  

I am open to decent analysis of this company, including assessment of the rail line, but so far the facts we have do not end up in DMM being 'dreamers'. They are only dreaming at this stage if Chindia totally falls over into the worldwide depression imvho.


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## tigerboi (12 January 2009)

*Re: DMM-good luck*

I would post the scoping study but you would more than likely say its too long,as for downramping(nice change thx) i got the right info at 47c BEFORE the anns,i chose to let it go coz i thought it was too risky.

imo there has been alot of hype with calls this will see $3-$4 & in the rush to get on board people have not looked closely,all theyve seen is 33mt of io in africa & a very old railway line...

anyhow all the best in getting square,i still reckon their a bunch of dreamers...tb


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## Sean K (12 January 2009)

*Re: DMM-good luck*



tigerboi said:


> I would post the scoping study but you would more than likely say its too long,as for downramping(nice change thx) i got the right info at 47c BEFORE the anns,i chose to let it go coz i thought it was too risky.
> 
> imo there has been alot of hype with calls this will see $3-$4 & in the rush to get on board people have not looked closely,all theyve seen is 33mt of io in africa & a very old railway line...
> 
> anyhow all the best in getting square,i still reckon their a bunch of dreamers...tb



This has nothing to do with me and my investment. You seem to be very emotional about this for some reason. Perhaps because it deals with trains.

What is important in the scoping study has been posted. If something's being missed, paste it up! Another picture of a train line maybe? 

Who called $3-4 and what was the justification? No one could have done that without giving some reasons, but your basis of this company being 'dreamers' is because you dont like the pictures of the rail line and the quote you provided in isolation which on review does not hold water as sufficient justification to can the entire line. 

Perhaps the line will need significant upgrading, or even replacement, but the facts at the moment don't support your position imo.


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## tigerboi (12 January 2009)

*Re: DMM-management dont give a toss about shareholders*

The transport side of the project is the main issue however you now have the conv note to dempsey/cfe & how that will be paid back,if the oppies dont get in the money to pay it back then looks like dempsey/cfe might not convert & look to take the lot for not much...

as i said i reckon management have pulled a con job on investors who now have to sit tight to see if they can get square,recent  placements & the conv note imo show what the company think of their investors... 

good luck...tb


----------



## Sean K (12 January 2009)

*Re: DMM-management dont give a toss about shareholders*



tigerboi said:


> The transport side of the project is the main issue however you now have the conv note to dempsey/cfe & how that will be paid back,if the oppies dont get in the money to pay it back then looks like dempsey/cfe might not convert & look to take the lot for not much...



What?

You're ahead of me on this one.



> 10th December 2008
> *ASX/MEDIA ANNOUNCEMENT*
> 
> DMC secures A$2 million funding facility
> ...




Get paid back? Opies conversion?

You're referring to Dec 2009? A year away?

I'm way out of touch here.


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## tigerboi (12 January 2009)

Do you mean this ahead of you? the jorc estimate BEFORE the scoping study was announced?if ive still got the PM ill let you see what you missed...
hope you get square before december 2009



tigerboi said:


> For the record here i got a private tip for DMM at 47c...




ask yt he might still have the PM


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## J.B.Nimble (13 January 2009)

Hmmm… I’m no expert on rail but hours of reading Thomas the Tank Engine with my four year old has taught me that you don’t have to be the biggest engine on the island of Sodor to qualify as a Really Useful Engine 

Narrow gauge - a realistic proposition or a kids plaything? 
Cape gauge (3’ 6”) rail is not going to be as economically efficient as a standard or broad gauge rail system but it is standard across Southern and Central Africa, Indonesia, Japan, Taiwan, Philippines, and New Zealand. It does carry useful amounts of freight in these countries and is the gauge of choice due to topography (can go through tighter turning radii in mountainous country) and lower construction costs. Seems a bit harsh to write off their rail system just because they are not blessed with the pancake flat desert topography of Australia.

Bearing capacity? 
It was constructed for manganese mining and so it would presumably have been designed with sufficient bearing capacity for narrow gauge ore wagons. Presumably some engineer did some calcs in an era when it was all done by slide rule, pencil, paper and a real feel for the numbers - Hmm, I'm feeling better already...

Economic train size? 
The trains will be smaller than the equivalent trains in Australia. Why must 3m Tpa equate to 150 trips as TB suggests - why not 600 trips? It may look like economic suicide from an Australian perspective but the Congolese train drivers and maintenance crews are not pulling six figure incomes - lower labour costs flow through every part of the cost structure. It wouldn’t work in Oz but smaller, lighter, more frequent trains could be an economic proposition in Africa. It seems to me that 3m Tpa is a modest amount of freight to be carried on a line that they appear to have pretty much to themselves.

Line condition? 
Although the manganese trains stopped running in 1986, the line is still used by a passenger train service and presumably receives some minimal amount of maintenance to keep the line in service. The most likely area of weakness would be the condition of the 40 year old bridges.

I no longer hold this one but it continues to interest me. I think the risks are less in the logistics area and more in the short term funding and medium term iron ore demand.


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## Sean K (13 January 2009)

tigerboi said:


> ask yt he might still have the PM



Wow, you got a private tip from YT when it was 47 cents! Gee, wish I was so lucky. And I'll just have to hope that I can get square by Dec. Cheers. 



J.B.Nimble said:


> Hmmm… I’m no expert on rail but hours of reading Thomas the Tank Engine with my four year old has taught me that you don’t have to be the biggest engine on the island of Sodor to qualify as a Really Useful Engine



Now if you pushed Thamas around a bit, that would make you an expert and I'd listen to you.


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## Who Dares Wins (13 January 2009)

*Re: DMM*



kennas said:


> Who called $3-4 and what was the justification? No one could have done that without giving some reasons......




Well actually back on the first page of this thread someone did call $3 - 5 and it was way back then I think the Young Trader called $1.50 - $3.00 although he gave alot of justification for it, which I believe was accurate.

By the way, where is Young Trader these days. I notice he hasn't visited this site for a couple of months.

There's only one way to settle this thing about the railway. One of us needs to go over to Brazzaville and embark on a train trip to the interior.

Kenna's - I think you should go.

Disc: I hold DMM


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## Miner (13 January 2009)

*Re: DMM*



Who Dares Wins said:


> Well actually back on the first page of this thread someone did call $3 - 5 and it was way back then I think the Young Trader called $1.50 - $3.00 although he gave alot of justification for it, which I believe was accurate.
> 
> By the way, where is Young Trader these days. I notice he hasn't visited this site for a couple of months.
> 
> ...





I am throwing my hat in the ring to go to Brazzaville. The only problem is sponsorhsip . If some one buys me the return (not one way please) ticket, Kennas provides me the board and lodging then I will manage with my visa fee and local travel. 

I do not hold DMM


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## tigerboi (13 January 2009)

*Re: DMM*



Who Dares Wins said:


> There's only one way to settle this thing about the railway. One of us needs to go over to Brazzaville and embark on a train trip to the interior.
> 
> Kenna's - I think you should go.
> 
> Disc: I hold DMM




I second that seeing hes made so much coin off it he should take the ball up for the suffering DMM shareholders even if he doesn't hold anymore DMM...tb


----------



## Sean K (13 January 2009)

*Re: DMM*



Who Dares Wins said:


> Well actually back on the first page of this thread someone did call $3 - 5 and it was way back then I think the Young Trader called $1.50 - $3.00 although he gave alot of justification for it, which I believe was accurate.
> 
> By the way, where is Young Trader these days. I notice he hasn't visited this site for a couple of months.
> 
> ...



YT is cruising about SE Asia.

The earlier valuations were probably based on the potential DSO and Mag in the ground and it's average value for an exploration company. Back then it made sence. 

I'd love to go and kick the track, but tied up in Peru.

Will have to rely on the company for information at this point.

tb, I'm still holding a few. I would have sold out earlier on technicals but in doing so would have tanked the price too much due to the low liquidity. The price of buying into specs I suppose. Lesson learnt. Again....


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## tigerboi (13 January 2009)

I always thought $1.00 was a good price to bail out of this as its tightly held,for me had i bought at 47c then up to 94c to a $1.00 would of been the target.

I dont think the sentiment will change before the oppies are due in june i think?so that some cash can lob in to pay the $2m+12% back that would see a heads price of 50c,cfe can convert at 10c so investors will be loathe to pay much more than that.

my take is they've got til june to drill up maybe double the 135mt target to get the previous volume to 50c,personally i think cfe dipped their toe in the water for $2m knowing the odds are way in their favour & i think they wont convert the note(in 12 months)...more likely to want the project themselves.

next 5 months will be make or break...

as for the truck driving caper dont let that fool you kennas ol mate,did accounting,mathematics & some law when i was a young bloke,but love the highway...

while australia sleeps us drivers keep everyone fed,fuelled,newspapers etc

Take a look around your house,only thing not delivered would be a baby...everything else has been on a truck...tb


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## grace (13 January 2009)

I see the rail line has come up again in conversation.  I had some heated discussion with young trader over it once upon a time.  Miner came up with some thoughts as I recall.  It does need some money spent on it, that is for sure.  It is better than nothing though.

As already posted, biggest risk is funding and iron ore price, like all of the juniors.  Can't even guess what the future holds for this one.  I still hold my small holding.


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## shag (15 January 2009)

J.B.Nimble said:


> Hmmm… I’m no expert on rail but hours of reading Thomas the Tank Engine with my four year old has taught me that you don’t have to be the biggest engine on the island of Sodor to qualify as a Really Useful Engine
> 
> Narrow gauge - a realistic proposition or a kids plaything?
> Cape gauge (3’ 6”) rail is not going to be as economically efficient as a standard or broad gauge rail system but it is standard across Southern and Central Africa, Indonesia, Japan, Taiwan, Philippines, and New Zealand. It does carry useful amounts of freight in these countries and is the gauge of choice due to topography (can go through tighter turning radii in mountainous country) and lower construction costs. Seems a bit harsh to write off their rail system just because they are not blessed with the pancake flat desert topography of Australia.
> ...



40 yo bridges don't sound bad. hell its not that long ago. most in nz are way way way older for rail esp and road.
they cart a lot of coal on nz's crap railway lines.
and nz has plenty of 1970's locos and wagons to renew too that might only ever possibly be useful for some african hole(after the last governent was absolutely fleeced by toll for the way way outdated rolling stock last yr-600mill). hell they might pay and deliver to get rid of the 70's junk.


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## tigerboi (15 January 2009)

*Re: DMM-rail maintenance is vital with old lines*

I think some may have missed the point about 40 year old gear(as well i think it was actually built in the 20's)

It is ok to run the old gear but when your running bulk tonnages with iron ore,coal,manganese etc you have to be right on top of your preventitive maintenance.so you must do your work upgrades BEFORE they go crash bang wallop.i believe the line is 360 km long...mayoko to the port,lot can go wrong in 360 kms with old gear.

if you want an efficient operation you would punt the old gear...its just too unreliable

new engine from downer edi costs $5m,guy that owns stc transport just bought 8 new ones to run bris-melb-perth for the woolies contract...he hauls 20,000 tonne from melbourne to perth...

remember this is a single line to start with so maintenance is doubly important as down time with bulk haulage is a killer.

If you read the reports you will see the line has only been used for passengers since 1986...

do you know how long it takes AIO to get a train through sydney on a good day...6 1/2 hours...


----------



## prawn_86 (15 January 2009)

*Re: DMM-rail maintenance is vital with old lines*



tigerboi said:


> do you know how long it takes AIO to get a train through sydney on a good day...6 1/2 hours...




what/how does that have anything even remotely related to DMM, aside from the fact that there are trains in both examples....


----------



## tigerboi (15 January 2009)

*Re: DMM-rail maintenance is vital with old lines*



prawn_86 said:


> what/how does that have anything even remotely related to DMM, aside from the fact that there are trains in both examples....




talking about rail effiencies which is crucial in DMM'S case as they propose to use a single line on the 1st half of the trip...example of what can go wrong when you dont get things right such as capacity overload & not performing maintenance when required...

AIO & others trains get held up because of preventitive maintenance not being performed...


----------



## Sean K (15 January 2009)

*Re: DMM-rail maintenance is vital with old lines*



tigerboi said:


> AIO & others trains get held up because of preventitive maintenance not being performed...



Yes, you're spot on with this one. I was reading in the Scoping Study that GRD recommended NO preventative maintanance to be performed. That would ensure that the track and trains would fall apart and make the project uneconomical. DMM are right behind this recommendation.


----------



## JTLP (5 February 2009)

New low today. 7 cents. Ouch.

Kennas hold me...i'm scared

What are we waiting on now? Feasible studies? Resource Upgrades?

Someone to just buy some shares?

DMMO expires in Jun '09. They'd want to start some sort of SP increase between now and then...it's only 4 months away . And by increase i'm not talking about a spike.

What's the G-O with the Iron Ore market these days anyway? Prices up?

Any takeover potential with DMM?


----------



## Sean K (5 February 2009)

JTLP said:


> New low today. 7 cents. Ouch.
> 
> Kennas hold me...i'm scared
> 
> What are we waiting on now? Feasible studies? Resource Upgrades?



Hi JTLP, Yes looks untidy on the screen, but think the significance of the volume.

30K ish @ 7 c = $2100 ish I think.

Obviously a big player trying to take get out of their position .... 

Or, maybe it's tigerboi's uncle making a trade while pushing the red and greeen buttons on his train?

As I think I mentioned a while ago in my blog, too late for me to get out. They have enough cash to get by for a year of exploration and development I think, at which time a few economists are saying there will be a bottom. So, I'm either taking a massive paper loss and potential capital loss in June, or we'll see a turn around and maybe even a buying opportunity later in the year.

Cripes $1.10 to 7c.... That is crap if anyone bought and held from the top. Ouch.


----------



## kenny (6 February 2009)

As a chronic lurker on this thread I'm wondering whether most holders of DMM are reluctant ones presently. Trader turned Investor so to speak.

Has there been any word as to the intended use for the funds gained from the conversion of the options in June? Does DMM have enough funding to last till then?

Regards,

Kenny


----------



## shag (6 February 2009)

kenny said:


> As a chronic lurker on this thread I'm wondering whether most holders of DMM are reluctant ones presently. Trader turned Investor so to speak.
> 
> Has there been any word as to the intended use for the funds gained from the conversion of the options in June? Does DMM have enough funding to last till then?
> 
> ...



id say everyone here is stuck with the thing.
i still like the story, even the pic's of the 'dodgy' railway line looks damn flash to me, they just need some tordon granules on the track to kill the grass forever and a few hot locos and wagons from someone dumping old stock like nz.
like the liquidy on this one is about as wet as the middle of aus....


----------



## d_crome (10 February 2009)

The thing that kills me right now is the absolute near silence of management - their stock price has sunk near 90% and the ONLY news we get is "Oh - took a rather highly risky finance offering" and that's that.

NO news on the revised JORC progress.

NO news of the JV search.

NO news....

I think DMM is the stock that taught me a lesson unfortunately.


----------



## Sean K (10 February 2009)

d_crome said:


> The thing that kills me right now is the absolute near silence of management - their stock price has sunk near 90% and the ONLY news we get is "Oh - took a rather highly risky finance offering" and that's that.
> 
> NO news on the revised JORC progress.
> 
> ...



Yeah, pretty average, and certainly if you bought and held from over $1.00. They were supposed to start a drilling program in Aug 08 I recall to extend the JORCs. Now they say they are about to do some chanelling or something in prep for drilling. 

The news on you three points here were actually covered in their Dec Qtly out last week, but it was VERY light on for detail. The news was....NO news! 

Maybe if IO spot has bottomed then punters will revisit. One thing's probably sure though, those that had to get out, have already.


----------



## d_crome (10 February 2009)

Kennas - one can only hope - though people still dump this stock at 5, 7 and 9 cents over the last 5 months or so has me pretty amazed.

I didn't buy at the peak, but I'm certainly sitting on a loss like most holders on this one.

The revised JORC for me was what kept DMM in play - thats what they need to focus on right now, simply informing the market that they're alive, drilling and awaiting good results.....


----------



## d_crome (19 February 2009)

So no news at all - makes you wonder how management are "spending" that 2 Million $ lifeline - if at all - or if their working out how best to line their own pockets should she go under.

Its not THAT hard to release a JORC update in progress announcement is it??


----------



## Beethoven (20 February 2009)

Just looking at the quarterly cashflow. Seems a little fishy to me. They spent $640,000 on administration fees and spent $321,000 on exploration. How does that work out? They spent more running the business rather than exploration totalling almost 1 million spent in a quarter. How can you spend that much on administration fees. Last quarter they say they are going to use $300,000 however they burn twice that much and this quarterly cashflow statements states the same thing. Thats quite a lot for doing nothing don't u reckon. Also they get a $2 mil lifeline which will only last half a year???? . I don't see how you could possibly justify using that much money and not release anything. I wouldn't touch this company with a 10 foot pole.


----------



## JTLP (25 February 2009)

DMM down on massive p volume...ouch.

CGT write offs for this bad boy it seems...

Surely management can provide a little update once in a while? No real news since the funding facility...getting quite stale actually...

What are we expecting in the coming months?


----------



## Sean K (25 February 2009)

I think it's been no news because they went into hybernation due to the crisis and have wanted to save money for when the world turns around, which is the right thing to do imo. I don't think they're yet to continue the drilling program to expand the JORC. Time to get out, or just wait it out I think. And yes, that volume on the sell down is alarming. Capitulation. lol


----------



## JTLP (5 March 2009)

DMM bouncing up down and around the last few days...

Does this report have anything to do with it:
http://www.researchfrc.com/

Scroll down the page and look for the date *2009.02.25*...DMM should be listed there.

The report makes for some interesting reading...and the research company puts a fair value of 20 cents on DMM 

Anyway...read for yourselves and tell everyone what you think...


----------



## Aargh! (5 March 2009)

JTLP said:


> DMM bouncing up down and around the last few days...
> 
> Does this report have anything to do with it:
> http://www.researchfrc.com/
> ...




Well I had a read over it. I don't think it provided more insight really. Just appeared to be recycled information.

I did note that DMM has paid them for the 'research' a sum of less than $30,000 (in disclosure section). Also their rating ratio says they rate a BUY 70% of the time. It appears they generally provide a buy for the right price.


----------



## JTLP (30 March 2009)

Trading halt...

Pending announcement of an infrastructure agreement...

PLEASE OH PLEASE be a good thing (it sounds like one  )

Holding and watching...waiting...

Thoughts?


----------



## Largesse (30 March 2009)

I would truly love it if the announcement sparked some interest in this stock.
Maybe then my options might have a value again....


----------



## grace (30 March 2009)

JTLP said:


> Trading halt...
> 
> Pending announcement of an infrastructure agreement...
> 
> ...




Yes, I'm praying that it wakes up from the dead too.  Most of the other iron ore explorers have had a bit of a move up recently.  This one is lagging the chain.


----------



## Go Nuke (31 March 2009)

At least there are stuff all sellers...mind you stuff all buyers too 

Guess we are all holding losses and thats why there's no sellers


----------



## ColB (31 March 2009)

> Originally posted by *Go Nuke*
> 
> At least there are stuff all sellers...mind you stuff all buyers too
> 
> Guess we are all holding losses and thats why there's no sellers




Good to see I'm not the only one holding these for which i paid 86c !!

We should rename it the *'Biggest Losers Thread'*


----------



## d_crome (31 March 2009)

Granted I'm not sitting on as big a loss as you - but I'm close!

Given that there are a lot of DMM victims here I say a support group could be in order. lol

You live, you learn.


----------



## Bomba (31 March 2009)

i have 6,000 of these beauties at 0.80.  

i am glad i offloaded the other 5,000 i had at 0.60. 

please count me in the support group.


----------



## YOUNG_TRADER (1 April 2009)

YOUNG_TRADER said:


> Interesting take D Chrome, what exactly was it in the announcement that makes you say "directors shored up to benefit in case of takeover"
> 
> p.s. I am in the exact same boat as you, all of my promissing juniors have been slaughtered mercilessly, but hey so have the CNP's the BNB's the BHP's the RIO's everyone so its all relative I guess







lol 6,000? If you only knew how many of these bad boys I have and how much it cost me, oh well not selling at these prices, granted the game has changed but this one is just ridiculously cheap so will hold and wait for something to happen

Only concern cash is getting low, but the resource is there and does have value to it, the conv note funding package is a bit of a joke but times are tough for juniours I guess


Interesting to see the following, probably just a coincidence though

On the 19th December 2008 DMC announced the appointment of Mr Kim
Bischoff to the Board of the Company, in the capacity as Non Executive
Director.
Kim Bischoff is an experienced Australian geologist with over 24 years
experience in mineral exploration, project and business development,
production and country management in Australia, Africa and South East Asia.
He has held a variety of roles including Exploration Manager, Chief Mine
Geologist and other senior positions for companies in Indonesia, East Africa,
and Australia. He has managed exploration and development of gold, copper
and iron deposits and has significant production experience in underground and
open pit mining. His expertise lies in the geological and commercial assessment
and progression of metalliferous exploration and mining projects, in building
and managing project teams, in technical systems development, and in country
management. *Kim is currently employed as General Manager – Exploration for Cape Lambert Iron Ore Limited.*


----------



## d_crome (1 April 2009)

YOUNG_TRADER said:


> lol 6,000? If you only knew how many of these bad boys I have and how much it cost me, oh well not selling at these prices, granted the game has changed but this one is just ridiculously cheap so will hold and wait for something to happen
> 
> Only concern cash is getting low, but the resource is there and does have value to it, the conv note funding package is a bit of a joke but times are tough for juniours I guess
> 
> ...




YT - you think CFE could be a potential buyer?

Would make sense given the rather "poor" finance deal DMM secured for themselves....


----------



## Sean K (1 April 2009)

I'm not sure why this needed a trading halt. 

Good news with a quick glance though.

Any war stoppers in the minor detail on the rail line?

Just questions on the bridges really.

700 plus cars for the 11Mt pa won't come cheap will they?


*DMC Completes Landmark Rail Access Agreement*

Highlights
● DMC granted immediate access to the Mayoko to Pointe Noire Rail Line.
● The rail line is approximately 2.2 km from DMC’s Mayoko Iron Ore
deposit and runs to the wharf of the established deep water port of
Pointe Noire.
● DMC has engaged Perth based project management and engineering
company, Engenium Pty Ltd to compile all available information on the
Mayoko to Pointe Noire rail line as a preliminary to commencing a
feasibility study.


----------



## d_crome (1 April 2009)

Well - it IS April 1st - and we are all FOOLS for holding this stock - hence I assume that's why the announcement was held till today.


----------



## YOUNG_TRADER (1 April 2009)

d_crome said:


> YT - you think CFE could be a potential buyer?
> 
> Would make sense given the rather "poor" finance deal DMM secured for themselves....




Well I just had a very interesting conversation with a broker mate,

Turns out the company that advanced the conv note to us 
*Dempsey Resources Pty Ltd (“Dempsey”)* see ann http://imagesignal.comsec.com.au/asxdata/20081211/pdf/00912627.pdf

Is a subsidiary of Cape Lambert 

See the ann's where *Dempsey Resources Pty Ltd (“Dempsey”), a wholly
owned subsidiary of Cape Lambert Iron Ore * provided funding to LAT Ltd.http://www.latinresources.com.au/Investors/Announcements/Latin%20Resources%20secures%20$2.2m%20funding%20facility.pdf

Now the note converts at the lesser of 10c of 5 day VWAP, so lets assume 10c = 20m shares, given DMM currently only have 45m shares that would be 30% of the issued capital to CFE for a measely $2m


----------



## rhyslivs (1 April 2009)

Is there anything to expect in the next quarter that might stimulate a bit of movement in this stock. It would be good to get some of the options converted at the end of June.


----------



## Go Nuke (3 April 2009)

Hi YT nice to see ya back

Its funny how all these directors have so many connections with other companies.

I found something like that the other day NGE and ORD having a connection through directors being on different boards.

Thats a great theory about CFE making a play for DMM. Though CFE has just done a deal to secure the Marampa Iron Ore project (Sierra Leone).

Is it possible for them to take a stake in DMM?

Maybe someone likes the idea of investing in these nations.

Pehaps they want to be the next "Force in Iron Ore"...from Africa.

(sorry thats probably ramping..lol)


----------



## YOUNG_TRADER (3 April 2009)

Hmmm interesting volume of late, guess the rail/infrastructure access agreement has got this back on a few radars 

*Its Mkt Cap is ridiculous around $4m or less*

With JORC 33Mt's@55.5% Fe and upside exploration targets of 135Mts@57%Fe and 800Mt's Mag at 35%Fe


So yeah I can definately see someone like Cape splashing out some $$$$ to take this over, how much and when is another story but this is just too cheap, always has been... hope it won't always be 

Has been trading between 7c and 10c if it can break up through 10c would be nice


----------



## JTLP (3 April 2009)

Connections connections connections...I always thought it was just a way of directors making more $$$ and going on more holidays!

Anyway, volume is up a bit today and somebody has grabbed all on offer at 9 cents. Not saying we are going to be flying any time soon but its nice somebody has chewed them up...


----------



## YOUNG_TRADER (8 April 2009)

Hmmm interesting read of the AGM meeting notes especially the Experts Report,

Much of the AGM notes are directed at Dempsey (ie Cape Lambert CFE) being able to convert their convertible note for shares, the experts report states that the conversion is NOT fair but reasonable go figure lol

Also the companies assets mainly Mayoko is worth 23.5c per share (very conservative when compared to value being placed on SDL's Iron Ore prject) but nevertheless thats 23.5c vs current SP of 10c


----------



## YOUNG_TRADER (17 April 2009)

Hmmm interesting announcment out

A follow up to the Experts Report on the "control" value of DMM


*The Independent Experts Report states the assessed value per DMC share
including premium for control to be $0.287 per share as at 31st March 2009*


Could a takeover be in the wings? very interesting they are going to this effort to state what the takeover/control value of DMM is


----------



## Largesse (17 April 2009)

Reading today's assesment of our finance leaves me feeling like i'm riding a bike with no seat 

anyone care to throw in their thoughts aswell?
36% dilution sounds pretty bad


----------



## d_crome (17 April 2009)

Don't worry - you usually can get good value bike lube at any reputable bike store...might make it easier!

I think we're all feeling it at this point - looks like CFE are going to get this dirt cheap - pretty much how I saw it coming if you you back over the last few months.

CFE provided some funding in a very poor deal for DMM.

Management secured their golden parachutes.

Now Management release documentation stating the company is worth oh, about 23.5% of what some LARGE INVESTORS (*cough* passport *cough*) bought in at - at least so I believe.

Bottom line - we're all not going to like any of this at all.


----------



## ColB (17 April 2009)

> Originally posted by *D-Chrome*
> 
> "...Don't worry - you usually can get good value bike lube at any reputable bike store...might make it easier!..."




If I get 28.7 cents per share I'm gunna buy meself a new bike!!

Could be worse guys.  You could've bought 500,000 shares of LOD @ 6.5c like I did and watched em drop to 1 cent about 2 months ago.  

Look at em now (7.7 cents)  Glad I didn't capitulate.  Let's hope DMM does the same


----------



## d_crome (20 April 2009)

Announcement out...

Is it just me or are the proverbial's starting to leave the sinking ship??

Again - DYOR, just my own idiotic ranting going on here...


----------



## Sean K (20 April 2009)

d_crome said:


> Announcement out...
> 
> Is it just me or are the proverbial's starting to leave the sinking ship??
> 
> Again - DYOR, just my own idiotic ranting going on here...



A company secretary leaving is probably not too much to worry about.

Although VERY thinly traded (warranted by SOI), looks like a bottom was formed around 6c. Perhaps the dead wood has been cleared?


----------



## shag (20 April 2009)

mr market seems to think its good anyway.
its bloody hard to get these stocks when u want too.
from what im reading fe is going to be ok. like i say, who cares if they wear a 40pc cut.
what does worry me is the chinese gaining too much market share at the source.
plus this saga is sort of leading to what bhp-the man with the balls, wants, no old fashioned contract price, but spot prices.
if it was me, i'd say bugger the poms(like its anzac day soon, read gallipoli so very timely), and put so many conditions on the rio deal its not worth it.
i'm digressing sorry.


----------



## YOUNG_TRADER (20 April 2009)

hmmmm yeah saw the ann then saw the price creeping up on low volume,

Wonder who this new secretary is and more importantly if there are any links to Cape   Pure speculation but can't think of any other reason for DMM to move up (thin volume or not) maybe its just sentiment  seems to be happening alot so probably just that


----------



## d_crome (21 April 2009)

Well - whatever - the SP is rising.

Maybe if the rest of the board continues to leave the SP will get back to somewhere in the range that most of us would only be sitting on a 50% loss rather than a 90%...LOL


----------



## YOUNG_TRADER (1 May 2009)

YOUNG_TRADER said:


> Well I just had a very interesting conversation with a broker mate,
> 
> Turns out the company that advanced the conv note to us
> *Dempsey Resources Pty Ltd (“Dempsey”)* see ann http://imagesignal.comsec.com.au/asxdata/20081211/pdf/00912627.pdf
> ...




Looks like DMM have made it clear to the market that the funding that came from Dempsey is infact actually CFE once the mask is removed 

Interesting read of the qtrly, I wonder if they can sign off on a JV before the opies expire to get some cash in the bank???




Corporate
Strategic Partnerships and Funding Negotiations
DMC has conducted several negotiations with interested parties in relation to potential Joint Venture, strategic funding and/or off-take partnerships with DMC in relation to the Mayoko Iron Ore Project.
Over fifteen Confidentiality Agreements have been signed, many with the world’s leading steel industry groups. Due diligence has commenced by a number of the interested parties, with site visits having been completed by some of these groups.
The Company believes that with the presence of existing port and rail
infrastructure, the initial Inferred Mineral Resource, and continued exploration the Mayoko Iron Ore Project is particularly attractive to potential strategic and funding partners.


In December 2008, DMC issued a Convertible Note to Dempsey Resources. Dempsey Resources is a 100% owned entity of Cape Lambert Iron Ore Limited (ASXCode:CFE). In the future Cape Lambert could possibly be a source of funding to DMC, or assist with the securing of a long term strategic partner to advance the Mayoko Iron Ore Project.


----------



## quarky (4 May 2009)

d_crome said:


> Well - whatever - the SP is rising.
> 
> Maybe if the rest of the board continues to leave the SP will get back to somewhere in the range that most of us would only be sitting on a 50% loss rather than a 90%...LOL



i'd say i was losing 90% of it.

bought it last year at $0.75
saw it rise to $1.10 (and didn't sell! )
then, saw the stock price plummet to around $0.01


then again, if i was brave and courageous, i would have bought some then...because since then it's been over a 100% rise. 


DMC still represents good value if i can overlook the sovereign risk and no JV, i'd buy some now....but i'm holding onto my Rudd-dollars.


----------



## JTLP (7 May 2009)

Something fishy going on here...

All this talk about the Convertible note and now the company is just fully out with fact that Dempsey is basically CFE. There has been consistent volume for a little bit of time now as well. 

Interesting point in the ann today as well:



> Cape Lambert's objective is to use its cash reserves to invest in a portfolio of early definition resources assets, principally iron ore and related steel making assets and to add value to those assets to position them for either development and/or sale




I get the feeling (amongst others on here who probably do)...that when it comes time for Converting the note (or maybe before) CFE are just going to takeover DMM and for probably a pretty cheap price.

Thoughts?


----------



## Largesse (11 May 2009)

anyone considering averaging down on this?

i know many suggest its a bad idea, but DMM starting to slowly tick up?
might be an opportunity to get some green back in the folio?


----------



## Pimping (11 May 2009)

Largesse, don't know about the averaging down bit, we all know the pros and cons for that method, however I like what I am seeing from this stock at the moment, seems that someone is nibbling at the market price and wants a piece of this company, could it be that this one is starting to wake up?


----------



## d_crome (11 May 2009)

Ouch - averaging down - famous last words.

I'd do it if you strongly felt the project was a winner - I've done this with a few other stocks I hold.

Is DMM one I strongly believe in?

Unfortunately no.

Risk is yours though - no guts, no glory... LOL


----------



## JTLP (11 May 2009)

My sentiments with DMM have changed dramatically in the last few weeks...especially the latest ann.

Some things to remember with DMM when comparing to other Iron Ore juniors:

- DMM has access to infrastructure 

- DMM is in negotiations with poential JV's, offtake's or strategic funding for the Mayoko project

- DMM has 15 confidentiality agreements signed, and they make a big note that some of them are with leading steel mills. This is quite an achievement for an IO hopeful/junior to be potentially dealing with these majors. They must see some massive potential in this little co to even wave a stick over them.

- Interestingly enough the price has hit 20 cents today...I don't know the options conversion rate but believe it is around this mark. DMM may soon be able to reach this figure and get some cash in the bank to further drill their massive prospect and build up a decent resource and/or pay down the note from CFE.


----------



## rhyslivs (11 May 2009)

I think the oppies are looking like they might be worth a punt. 

Surely the company would be very interested in getting them converted.

19,154,726 options @ $0.20 = $3,830,945. Would be nice to have to fund their further drilling and pay down the note as JTLP mentioned.

Rhys


----------



## Largesse (11 May 2009)

rhyslivs said:


> I think the oppies are looking like they might be worth a punt.
> 
> Surely the company would be very interested in getting them converted.
> 
> ...




If the company can't fast track any work they are engaged in at the moment to a point where they can release news/announcement that will put the options in the money, then management are seriously stupid.

simple fact. SP > $0.20 = VERY EASY CAP RAISING


----------



## rhyslivs (12 May 2009)

There is an announcement on Google Finance from Reuters that I cant seem to access regarding:

DMC Mining Limited Announces Substantial Interest Of Project ...

Has anyone got access to this and if so could you inform as to its contents?

Regards,

Rhys


----------



## rhyslivs (25 May 2009)

From old announcement:

"The bulk samples were dispatched from the Republic of Congo on 26th March and arrived in Australia on 8th April.

Results are expected to be available in May 2009."

Its the last week of may, heres to hoping we see some sort of announcement regarding the results.


----------



## Largesse (3 June 2009)

option expiry drawing closer.

DMM up to 18.5c :O

feels very engineered, but... i dunno


anyone else care to comment?


----------



## happytown (10 June 2009)

dmm currently in a trading halt pending the release of an ann regarding details of an infrastructure access agreement

it could be in relation to the ongoing discussions being held with the port authority of pointe noire re exporting fe through the existing port

cheers


----------



## rhyslivs (10 June 2009)

I hope its more exciting than the last announcement they called a trading halt for.

While the rail access agreement was a very positive announcement, i dont know if it needed a trading halt.

Hopefully this rallies some interest and gets the options closer to in the money.


----------



## d_crome (11 June 2009)

Oh it's completely engineered.

20 cent options expiring - they'll be doing whatever they can in a hope to get across the finish line.

Unfortunately I'm holding - not particularly happy about that but I am...

Still no word on the important issues at hand, the revised JORC, the results of the samples due in May 2009 etc....no REAL progress unfortunately.


----------



## Sean K (12 June 2009)

Huh?  

A trading halt for an MOU to 'cooperate' on something.

WTF?

DMC Completes MOU with Port Authority of Pointe Noire

DMC Mining Limited (“DMC” or the “Company”) is pleased to announce that a Memorandum of Understanding (“MOU”) has been formalised between DMC’s subsidiary (DMC Iron Congo SARL), and the Port Authority of Pointe Noire (“PAPN”), whereby DMC and PAPN have undertaken to cooperate in investigating the potential export of iron ore from the Mayoko Iron Ore Project through the existing Pointe Noire port facility.


----------



## Datsun Disguise (12 June 2009)

d_crome said:


> 20 cent options expiring - they'll be doing whatever they can in a hope to get across the finish line.
> 
> Unfortunately I'm holding - not particularly happy about that but I am...




Spot on. But it looks a little silly doesn't it? If mgmt aren't bright enough to push for *material* announcements and to schedule some importnant milestones in the lead up to options expiry then what are they good for. I am amazed at the lack of foresight of some of these guys (not just DMM) - I reckon a mgmt team made up of some prominent ASFers would do a lot better than one might at first think....


----------



## d_crome (12 June 2009)

Datsun 180B mate - I haven't' seen a "material" based announcement out of management in sometime.

The few they did mention - namely the increased JORC plans and the ore sampling tests have not been mentioned since - both well behind schedule.

What we have heard is about the appointment of "connected" people within the region to the company and studies of what look to be a Thomas the Tank Engine scale rail line from the English Empirical age - not earth breaking stuff here.

I'm personally waiting for this to get marginally higher so I can get out, I can't stand the thought of an 80% loss right now, I'll take 50% and be happy.


----------



## YOUNG_TRADER (12 June 2009)

The current share price sucks, but fundamentally you've got to give it to them, they are one of the few companies that actually stand a chance of getting into production like ADY and TTY and MGX did, theyre slowly chipping away 

unfortunately odds are CFE will pounce once all the hard work has been done and imo reap the rewards


----------



## rhyslivs (15 June 2009)

Not sure if this was posted before, just some thoughts on the infrastructure taken from Proactiveinvestors:

Comparable Infrastructure

"The Mayoko to Pointe Noire line is comparable in distance and axle tonnage constraints to the Westnet rail infrastructure being utilized by Cliffs Natural Resources (Portman’s) for haulage of approximately 8Mtpa of iron ore from Koolyanobbing to the Port of Esperance, and also the narrow gauge rail system being utilized in Queensland for the haulage of coal to the Hay Point Port facility."


----------



## YOUNG_TRADER (15 June 2009)

Lets see if they can do anything to get those options over the line and converted

Given the recent spate of good news it looks like they're trying but I reckon they will need to try harder, also if Cape want to make a tilt at DMM my guess is it will be after the options expire and they'll be hoping and perhaps trying to make sure as few as possible get converted

All speculation on my part


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## rhyslivs (23 June 2009)

DMMO cease trading today 23 June 09. So today is the last chance to get in on them if you believe the company is capable of some magical turnaround!

Personally, while I am a holder of the options I don't like the odds. 

Unless, they release the test results and they are exceptionally good.


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## JTLP (1 July 2009)

Looks to be game over for DMM with the options finishing out of the money.

Will be an interesting scenario for them now with CFE waiting with baited breath to eat them up come note conversion time.

DMM said they were looking into funding agreements/JV's with other parties...surely they would have released an update on this and the metallurgical testing to get the oppies across.

Call me crazy but I smell a rat here...


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## d_crome (1 July 2009)

Sure management did try to get the oppies past the mark, with I believe two rather ridiculous "announcements" that were deemed by management to require a trading halt - 1 for when the copier jammed and the other because they were out of Tim Tams at the office *end sarcasm*.

The metallurgic results are nearly 6 weeks behind schedule, there's been no mention of the proposed plan to upgrade the existing JORC and also no discussion what so ever in regards to any potential J/V's.

These are important company making issues - NONE of which were mentioned in the slightest over the past weeks/months.

From what I can gather from previous announcements the powers that be have their golden parachutes all set - it's just really a matter of time for us, the shareholders, to get royally...(fill in the blank).

Again - DYOR - just my own ramblings of an ill informed imbecile.


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## Sean K (3 July 2009)

CFE to acquire 37% DMM.



> Cape Lambert to acquire 37% of DMC Mining.
> 
> Highlights:
> ● Cape Lambert subsidiary converts A$2 million Convertible Note in DMC,
> ...



What does this mean?

Well spotted LN.

eeeeek


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## YOUNG_TRADER (3 July 2009)

YOUNG_TRADER said:


> The current share price sucks, but fundamentally you've got to give it to them, they are one of the few companies that actually stand a chance of getting into production like ADY and TTY and MGX did, theyre slowly chipping away
> 
> unfortunately odds are CFE will pounce once all the hard work has been done and imo reap the rewards






rhyslivs said:


> Not sure if this was posted before, just some thoughts on the infrastructure taken from Proactiveinvestors:
> 
> Comparable Infrastructure
> 
> "The Mayoko to Pointe Noire line is comparable in distance and axle tonnage constraints to the Westnet rail infrastructure being utilized by Cliffs Natural Resources (Portman’s) for haulage of approximately 8Mtpa of iron ore from Koolyanobbing to the Port of Esperance, and also the narrow gauge rail system being utilized in Queensland for the haulage of coal to the Hay Point Port facility."





It means as I thought Cape are pouncing on a bargain basement asset

however since they are getting 37% of the company for such a cheap level, they can probably afford to pay a bit more for the balance

edit it also means since they've gone over 20% unless they have an ASIC or ASX waiver they are forced to now launch a full takeover bid


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## d_crome (4 July 2009)

YT - mate, in your opinion then, what would you feel a take over bid from CFE would comprise of?

Cash or scrip?

This could be a good "out" for most of us holding - if the world recovery continues to be slugish and ore prices lower, DMM, even in production might not produce the results in a shorter/medium term.

CFE however does however have the cash and have been using it wisely during this time of financial distress, such that trading in DMM stock for CFE stock might actually make sense.

Either way this is interesting to say the least.


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## dubiousinfo (4 July 2009)

YOUNG_TRADER said:


> edit it also means since they've gone over 20% unless they have an ASIC or ASX waiver they are forced to now launch a full takeover bid




I dont think the takeover provisions are enlivened as shareholders approved the transaction at a meeting in May.

Though am wondering how many seats they will want on the board.


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## rhyslivs (8 July 2009)

Just got a reply to an email I sent to DMM earlier today. They are very prompt to reply!

"Thanksyou for your email.

Regarding the metallurgical testwrok results, they have not been available to us at this point. You are correct that our initial expectations and statements were that we intended to have the results by May. It is certainly dissappointing to us as well that that has not occured.

The main reason for the delay was that we decided to do a more in-depth minerology/metallurgy analysis of the main ore type at the Mayoko Project which has taken more time, in addition, the turnaround time at Ammtec has taken longer than expected.

Our expectations from here are to have the ASX release within 2 weeks.

Best Regards,

David Sumich"

Looks like they are expecting the test results within the next 2 weeks. We'll see what happens I guess.


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## YOUNG_TRADER (17 July 2009)

YOUNG_TRADER said:


> It means as I thought Cape are pouncing on a bargain basement asset
> 
> however since they are getting 37% of the company for such a cheap level, they can probably afford to pay a bit more for the balance
> 
> edit it also means since they've gone over 20% unless they have an ASIC or ASX waiver they are forced to now launch a full takeover bid





Cape really are gonna end up stealing this one away from the market and us investors




"*DMC Confirms Exploration Target Size of 0.7 to 1 billion tonnes at Mayoko Iron Ore Project*

Geophysical modeling, constrained by recent trenching and historic
drilling information, estimates an exploration target size1 of 0.7 to 1
billion tonnes of dominantly itabirite iron mineralisation at Mt
Lekoumou and Mt Mipoundi.

Recent trenching and mapping along the Mt Lekoumou – Mt Mipoundi trend, and historic shallow diamond drilling (38 holes; refer Figure 2) at Mt Lekoumou has confirmed the occurrence of supergene hematite mineralisation extending from surface to depths of 10-40m. The supergene hematite mineralisation overlies banded itabirite with grades in the range 35 – 45% Fe being intersected in the base of several of the historic diamond drill holes."


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## d_crome (17 July 2009)

Good DMM announcement.

Probably a good time to buy CFE shares as this announcement is generating about as much excitement for DMM as a BeeGee's concert...

True shame that this whole fiasco is starting to look like a well played out scam - why couldn't something like this have been announced PRIOR to the options expiration??

Ah well - just my rumblings and rantings...


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## Go Nuke (19 July 2009)

As I stated on the 03/04/09..

"
Thats a great theory about CFE making a play for DMM. Though CFE has just done a deal to secure the Marampa Iron Ore project (Sierra Leone).

Is it possible for them to take a stake in DMM?

Maybe someone likes the idea of investing in these nations.

Pehaps they want to be the next "Force in Iron Ore"...from Africa"

Looks like a large amount of IO there.

Lets see if the sp or a t/o offer can get me back into the black


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## rhyslivs (21 July 2009)

rhyslivs said:


> Just got a reply to an email I sent to DMM earlier today. They are very prompt to reply!
> 
> "Thanksyou for your email.
> 
> ...




Well it looks like we should have some results this week, but with DMM you never know. If the results are good it will mean DMM is one of the leaders in the Iron Ore Juniors. I think it will be taken over.


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## happytown (21 July 2009)

rhyslivs said:


> Well it looks like we should have some results this week ...




just in time for the 13,025,000 shares released from escrow 3 days ago, as per yesterdays ann (and ann dated 06/07/09) 

cheers


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## Miner (21 July 2009)

How come so many news on DMM and our revered Kennas has not posted anything on DMM

Have you gone for fishing than watching DMM thread ?


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## rhyslivs (30 July 2009)

Similar stuff in their quarterly to the content of all their other announcements.

Of particular disappointment is this line:

"DMC had initially indicated metallurgical test work results would be available to market in May 2009, however the revised anticipated release is 4th quarter 2009."

I have emailed the company with a please explain.


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## quarky (7 August 2009)

late afternoon rally for DMC Mining...

Last Trade:	0.290 AUD
Trade Time:	3:15PM AEST
Change:	 0.080 (38.10%)
Prev Close:	0.210
Open:	0.235

Day's Range:	0.220 - 0.290
52wk Range:	0.011 - 0.685
Volume:	81,170


can't find the news of why it spiked... 

i'm still holding a sizable portion, bought at $0.70+ about 1.5 years ago.


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## shag (8 August 2009)

the miners conference often helps during the period its on
also recent news
was tempted to sell and buy back, but not worth the time really


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## rhyslivs (11 August 2009)

Thought I would post this up over here for scrutiny as well.

Alright here goes my attempt at valuing DMM.

It is really my first attempt at valuing resource stocks or stocks at all for the that matter. Im more use to real estate, but I will apply the same principals and see where it gets us.

Keep in mind these figures are EXTREMELY rough.

All the information is taken from the there recent presentation:

Production: 11 Mtpa - 4 years from now
Capex: $486,000,000
Opex: $22 / tonne
Revenue: $45 / tonne (lower end of their estimates)

Capex: 486,000,000

Revenue: 495,000,000

Opex: 242,000,000

Operating Profit: 253,000,000

Interest Payments on Capex (@ say 10%): 48,600,000 pa

Net Profit: 204,4000,000

Project 80% owned so profit to DMM: 163,520,000 (4 years from now)

Apply discount rate of 25% (fairly arbitrary if anyone knows a more realistic rate let me know) to future cash flow gives us a value of:

$66,980,000

No. of shares on Issue: 68,967,867.

*Each share has a value of: $0.97 OR say $1.00.*

Now everyone pick holes in my work!


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## Who Dares Wins (18 September 2009)

Some one must have spotted this from yesterday.

*"DMC Mining Limited requests a trading halt to be placed on the Company's securities effective immediately pending the release of an announcement by the Company regarding details of material capital raising." *


Thoughts?


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## Who Dares Wins (8 January 2010)

Trading Halt

*"...pending the release of an announcement by the Company providing an update on exploration activities".*

Drilling only started about a month ago but it must be something interesting to warrant going into a halt.


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## enigmatic (14 January 2010)

What is everyone thoughts on the 30% increase in exploration target. I do not hold or have much knowledge concerning DMM however have some exposure due to CFE.


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## JTLP (16 March 2010)

Just look at me raise the roof on these deadwood stocks! I wonder who buys these things if nobody talks about them?

Well after selling their soul to CFE/Dempsey lets look at whats happened since:

- 30% increase in exploration target at Mayoko to 0.9 - 1.3 Billion tonnes
- Apparently drilling work is getting sent to W.A for metallurgic testing 
- A director raked in 1,000,000 unlisted options 
- That's about all...what a boring bunch.

They seriously need some PR work. And do to some work rather than handing out options and pay packets to people who do nothing 

Maybe we can hope for a t/o? After all they pretty much have the infrastructure all set...just a little engine that can to get them over the line :


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## rotoso (23 March 2010)

Well well well after much selling down, pumping up and selling down today we find that CFE is to offer 40c for each 1 DMM share. We have the resource - but no cash . They want the resource presumably to sell off and they have the cash.....

Announcement out about an hour ago.

Discuss - Pro's cons


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## JTLP (23 March 2010)

rotoso said:


> Well well well after much selling down, pumping up and selling down today we find that CFE is to offer 40c for each 1 DMM share. We have the resource - but no cash . They want the resource presumably to sell off and they have the cash.....
> 
> Announcement out about an hour ago.
> 
> Discuss - Pro's cons




Laurie wherever you are...i now feel your pain. 

Pretty livid with this lowball bid from CFE. Would have liked a bit of scrip in there as well. 40 cents is just crap. 

Sadly, the bid will most likely go through as CFE already retain 32+ % of issued shares and have a member on the board. Looks like it's game over for DMM. Maybe I shouldn't have hoped for the t/o.


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## JTLP (23 March 2010)

Correction...CFE own 36%...also I was right! DMM did sell their souls to CFE to survive.

But therein lies the question...would we really be around to receive 40 cents p/s if we had not received the convertible note?

Also, what are the plans of the directors etc? Would like to see their recco's...

It's interesting to note the potential size of the resource DMM were targetting as well the fact they had a lot of infrastructure in place. Was fairly 'advanced' in a sense when compared to other I/O hopefuls but was also a bit primitive as well (in respect of infrastructure etc)

No doubt CFE will package this up and send it on its way to the Chinese for a princely sum...

No love.

P.S there still lies an arbitage play here for 1 cent if anybody believes the deal will go through and are keen.

DYOR


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## Sean K (23 March 2010)

Was hard to see these guys going anywhere without the Chinese, or a takeover by a talented crew. Are CFE talented? Whatever, maybe a good result for more recent holders, but those jumping in around the $1.00 might not be so happy. And I agree JTLP, CFE will probably sort them out shake off the dead wood, get some backing and sell it off for a handsome sum.


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## JTLP (23 March 2010)

kennas said:


> Was hard to see these guys going anywhere without the Chinese, or a takeover by a talented crew. Are CFE talented? Whatever, maybe a good result for more recent holders, but those jumping in around the $1.00 might not be so happy. And I agree JTLP, CFE will probably sort them out shake off the dead wood, get some backing and sell it off for a handsome sum.




I don't think CFE are talented in the fact that they would bring the project into production...that's not their game. They will probably just confirm a resource...get as far as a PFS or DFS...showing some pretty figures and projections and then flog it off. So maybe talented salesmen...not production crew.

Holders at $1 would be mad as cut snakes...I bought at a bit of a premium to the current SP and if I was keen as mustard i'd buy up big to lower my average and get the arbitage. But then I guess if it hasn't even hit the t/o price people don't believe in it or are just suckers?

The company has come out after market close and said to take NO ACTION...seems like this has come from nowhere from CFE? (don't see how...they have a friggen board member on DMM for crying out loud).

I don't see how a 30% or whatever CFE quoted premium to the current SP is a justifible amount? I guess they know that owning a vast majority of the co will stop others flirting with the possibility of a counter bid...hence the low ball and crap offer.

Frustrating as the project looked the goods but you're right Kennas...they really needed some heavy Chinese influence (JV or otherwise) or a better t/o offer to get this up and running...


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## JTLP (25 March 2010)

Just my thoughts on DMM. 

This looks to be a known but not expected t/o. Surely DMM had an inkling that CFE might make a tilt after getting an interest...just look at CFE's history and they have a member on DMMs board.. Whether they thought it would happen now is the question...and I suspect they didn't.

IMO and what DMM should so is to conduct an independent valuation report (much like DIO did with KPMG for the AVO t/o)...get the accountants to slap their usual over-valuation on it and take it back to CFE and say "We want 'x' not 40 cents'. Obviously the chances of getting the upper end valuation from the auditors report will be very slim to none but at least it gives DMM a roof for a price and they can work backwards to a better deal currently being offered from CFE. 40 cents p/s is no doubt a steal by CFE but I've mentioned before; CFE can play cheap because the odds of a white knight rescuing DMM when CFE hold over 36% are extremely slim. 

Here's hoping the DMM board have got a better figure in mind also...


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## JTLP (29 March 2010)

Err...did the board want to give shareholders any sort of recco as to what to do any time soon? It's a week tomorrow.

Guess they are just following normal DMM procedure/marketing practice...


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## JTLP (14 April 2010)

And there you have it...a superior offer of 46 cents per share. Not surprising that when the morning started and trading began it ran right up to 48 before coming down to 46 and what do you know...trading halt! 

Can't really see CFE offering a superior bid. I'd actually prefer 10 cents a share + 1 CFE share but that won't be happening. Maybe the max this will get to is 50 cents...


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## grace (14 April 2010)

JTLP said:


> And there you have it...a superior offer of 46 cents per share. Not surprising that when the morning started and trading began it ran right up to 48 before coming down to 46 and what do you know...trading halt!
> 
> Can't really see CFE offering a superior bid. I'd actually prefer 10 cents a share + 1 CFE share but that won't be happening. Maybe the max this will get to is 50 cents...




Glad I hung onto my very small parcel of these.
50cents is my break even.  Wouldn't that be nice to get my money back.


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## JTLP (14 April 2010)

grace said:


> Glad I hung onto my very small parcel of these.
> 50cents is my break even.  Wouldn't that be nice to get my money back.




Well Grace you could sell out for a less then 10% loss and maybe crystalize all that against your massive windfalls in the CSG sector :

DMM had so much going for it...sadly the directors didn't have the PR machine in mind and were happy to amble along...picking up pay cheques and partying in Africa (this may be a bit of a joke  )

Wish they could have pushed harder to see how close production could get...would have been an interesting case if they actually got there.


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## JTLP (18 April 2010)

JTLP said:


> Well Grace you could sell out for a less then 10% loss and maybe crystalize all that against your massive windfalls in the CSG sector :
> 
> DMM had so much going for it...sadly the directors didn't have the PR machine in mind and were happy to amble along...picking up pay cheques and partying in Africa (this may be a bit of a joke  )
> 
> Wish they could have pushed harder to see how close production could get...would have been an interesting case if they actually got there.




So the current price of DMM is below that of the mystery bidder's 46 cents. Not a lot of confidence in that bid. CFE counter bid likely? Probably not. Let's face it...DMM aren't in that much of a commanding position...they sold their souls to CFE for money in the first place.

50 cents would be nice and i'd definitely take it too Grace. Time and bidders statements will tell...


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## JTLP (19 April 2010)

So Tony Sage, big wig at CFE, has basically come out and said that CFE are determined to take DMC out and this Chinese bid is a surprise to them. He pretty much hints at an increased bid (note: does say that CFE do have a massive upperhand with their shareholding and haven't really looked through the opposing bid's terms yet)

The video can be found via this link: http://www.cnbc.com/id/15840232?video=1470386526&play=1

And the part that concerns DMM holder's is from 2:10 onwards.


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## JTLP (27 April 2010)

I'm changing my tune big time on the boys at DMC.

They have come out with a Take Over Activity update (ann today on the ASX) and said that the offer from CFE is opportunistic. They are in the midst of preparing a target statement with an independent experts valuation (read - more money if bidders are prepared to come to the party). 

Current valuations stand between 94 cents and $2.31 (this maximum range is from Tony Sage, CFE big wig himself, who valued DMC at a Market Cap of $200m!!!).

Good luck to holders and this war may just wage on a little longer...

P.S Grace you got your money back...you must have an angel on your side...


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## grace (27 April 2010)

JTLP said:


> Current valuations stand between 94 cents and $2.31 (this maximum range is from Tony Sage, CFE big wig himself, who valued DMC at a Market Cap of $200m!!!).
> 
> Good luck to holders and this war may just wage on a little longer...
> 
> P.S Grace you got your money back...you must have an angel on your side...




You have to have a win sometimes.  I can't even say why I kept this - only the price was poor when I was getting rid of some dead wood and I really didn't think it was worth the brokerage to sell (my dead wood was GIR, BRM and UMC when I was thinking China was going to start caving - still hasn't happened - I get plenty of things wrong and have learnt now not to pre-empt the market).

I have had a few die a natural death though.  And yes, I often think someone was watching over me during the GFC - I was very naive to the market - but managed to survive and even do quite well all things considered.


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## Sean K (27 April 2010)

I hope one of you guys picked up my last DMM shares around the 6c mark. Was an absolutely wild ride for me. In at a few cents, up to 1.10ish, sold through the decline. Came out a bit in front, but should have trusted judgement and even bought more at the bottom instead of selling. Lesson learnt, and hopefully emotions don't get me at the 'bottom' again. What an experience the GFC has been.


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## JTLP (27 April 2010)

Whoppaaaa!

6 cents and you didn't sell out past the dollar mark? You must have had high hopes for ye old DMM.

Unfortunately my funds were tied so I didn't get your 6ers...and i didn't buy in again either. Don't be too bummed about this one...they were pretty quiet and didn't have a lot of cash. BRM is the real bummer...you've noted that as well! 

I doubt this will get back to a $1 in the bidding war. Predicting things top out around 60 - 70 cents.


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## shag (11 May 2010)

anyone else with guesstimate on the eventual sale price
i need dosh but dont want to throw away a say 30pc increase.

with rudds idiot tax, even watered down and soverign risk he has created permanently, must make african miners more valuable.


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## JTLP (11 May 2010)

shag said:


> anyone else with guesstimate on the eventual sale price
> i need dosh but dont want to throw away a say 30pc increase.
> 
> with rudds idiot tax, even watered down and soverign risk he has created permanently, must make african miners more valuable.




I find it 'uncanny' (read - suspicious) that since this bidding war broke out the bid always overshoots the t/o offer price to the point at which the next t/o offer is launched at. Therefore on my whimsical theory I think we might see another bid @ .52 - .54 cents from Meijin.

If the great robbery called the RPST somehow manages to pass...then this project will look mighty tasty to CFE as they have stated they are putting on hold/withdrawing from Aus operations. Mining in the Congo looks tempting 

Let's hope Meijin have this same thought...chug on DMC!


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## JTLP (21 May 2010)

JTLP said:


> I find it 'uncanny' (read - suspicious) that since this bidding war broke out the bid always overshoots the t/o offer price to the point at which the next t/o offer is launched at. Therefore on my whimsical theory I think we might see another bid @ .52 - .54 cents from Meijin.
> 
> If the great robbery called the RPST somehow manages to pass...then this project will look mighty tasty to CFE as they have stated they are putting on hold/withdrawing from Aus operations. Mining in the Congo looks tempting
> 
> Let's hope Meijin have this same thought...chug on DMC!




Couldn't have picked it any better! Meijin have increased their offer to 53 cents per share. DMC board are saying TAKE NO ACTION until further notification. Now let's see if I can throw another prediction into the mix - CFE will either match the offer and go for Aust. Appeal or up the bid to 54 - 56 cents.

With Tony Sage mothballing projects in Australia this project is becoming all the more appetising to him. He needs something for CFE to chew on.

http://asx.com.au/asxpdf/20100521/pdf/31qg94g7qft5r0.pdf


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