DCN - Dacian Gold

[Sean K]

Chart's a concern for holders now imo. Just bears close watching. Has lost a lot of reversal strength with the gap down after today's pathetic Qtrly. That grade, 0.79g/t mined for processing! Still mentioning labour shortages. Only ok if we choose to believe management's future projections.

Needs to get it's head back above 23c.

@mullokintyre AISC is interesting.

higher AISC is attributable to the lower production

It's interesting that lower production can be the reason for higher AISC. You'd think it'd be the other way around.

I'm reading this trying to get my head around it...

 

[mullokintyre]

Needs to get it's head back above 23c.

@mullokintyre AISC is interesting.



It's interesting that lower production can be the reason for higher AISC. You'd think it'd be the other way around.

I'm reading this trying to get my head around it...

They were honest enough in their assessment of the quarter being out of the money , so I am going to give them the benefit of the doubt on the next three quarters being significantly better.
Watching, waiting.
Mick

 

[Sean K]

They were honest enough in their assessment of the quarter being out of the money , so I am going to give them the benefit of the doubt on the next three quarters being significantly better.
Watching, waiting.
Mick

Good start today, but might be just responding like most of the gold sector. Bouncy bouncy* upwards everywhere. XGD up 3.5%. Could it be the start of gold breaking out of the longer term flag...

*TM @finicky

 

[mullokintyre]

Sold part today, took my 10% profit.
Will hold the rest in hope gold stays above 1800 and heads to 1830, then 1890.
mick

 

[finicky]

Can't make my mind up about DCN lately. Thought I'd be punting on averaging down at prices higher than this. But cash feels more secure and other goldies more attractive if I were to spend. Chart looks a hope - break from a falling wedge last month? But I've a low level of confidence in the chart - or the company given my losses. If I weren't holding at a big loss and coming at it fresh I think I'd be buying a speculative few because of the paid off 3mtpa plant

 

[mullokintyre]

Sometimes you have to forget past losses.
As they say, never let sentiment get in the way of trading.
I took an absolute bath on this one.
Since then i have been trading it to get a 10% return on each trade.
If I do it enough times, I may even get my original stake back.
Still smarting from my losses in SBM, but nothing in the stock chart tells me I will do any better.
Waiting to see it break two bucks before I will play again.
Mick

 

[mullokintyre]

Some support now for DCN.
For the first time on months there are more buyers than sellers.
Think most of the investors have shaken out the bigger gold stocks, now moving onto the minnows like DCN.
If it can back to 32 cents, I will be out of the red on this one.
Mick

 

[finicky]

Lame duck

Request for Trading Halt – Dacian Gold Limited (DCN)
In accordance with Listing Rule 17.1, Dacian Gold Limited (Dacian) requests that an
immediate trading halt be placed on its securities pending the release of an announcement to
the ASX regarding a capital raising.
Dacian anticipates that the trading halt will be lifted on or before market open on Monday, 6
December 2021 by provision of an announcement to ASX.

 

[mullokintyre]

So, the TH was for another capital raising.
20 mill at 17 cents per share.
looks like a giant cash gobbling piece of Junk.
Mick

 

[Sean K]

a giant cash gobbling piece of Junk.

Some good fundamental analysis there Mick.

 

[mullokintyre]

Some good fundamental analysis there Mick.

Yeah well, I will elaborate.
In May this year they screwed existing shareholders (again) with a 40 mill capital raising. for the instos at 28cps when the previous day the SPP was at 30.5, and they had 19 mill in cash and gold.
Existing shareholders were offered up to 5mill in the sucker spp.
By the time the June quarterly had come out, they had 40mill in cash and gold, and they still had 16 mill still to in via the second tranch from instos and the sucker SPP, so some 56 mill. And they had 16 mill of debt.
By the time the September quarterly comes out, the 11k of gold production lost money at an AISC over 2360 an ounce.
Cash and gold on hand down to 33 mill, still 16mill in debt.
The high AISC will continue for this quarter and probably most of the first quarter calendar 2022.
Now comes another gift to the instos at 17 CPS, another 17% discount to previous closing price.
Like I said, a giant cash gobbling piece of junk.
Mick

 

[Sean K]

Yeah well, I will elaborate.
In May this year they screwed existing shareholders (again) with a 40 mill capital raising. for the instos at 28cps when the previous day the SPP was at 30.5, and they had 19 mill in cash and gold.
Existing shareholders were offered up to 5mill in the sucker spp.
By the time the June quarterly had come out, they had 40mill in cash and gold, and they still had 16 mill still to in via the second tranch from instos and the sucker SPP, so some 56 mill. And they had 16 mill of debt.
By the time the September quarterly comes out, the 11k of gold production lost money at an AISC over 2360 an ounce.
Cash and gold on hand down to 33 mill, still 16mill in debt.
The high AISC will continue for this quarter and probably most of the first quarter calendar 2022.
Now comes another gift to the instos at 17 CPS, another 17% discount to previous closing price.
Like I said, a giant cash gobbling piece of junk.
Mick

I prefer the abbreviated FA. Seems spot on.

I looked at their annual to see why they were asking for money when they're producing, about to ramp up, have cash, half of that debt, ASIC scheduled to come down.... why would they need to raise $ now? I anticipate there's a lot of 'working capital' in that CR.

 

[mullokintyre]

I prefer the abbreviated FA. Seems spot on.

I looked at their annual to see why they were asking for money when they're producing, about to ramp up, have cash, half of that debt, ASIC scheduled to come down.... why would they need to raise $ now? I anticipate there's a lot of 'working capital' in that CR.

They are still insisting that there will be 100 to 105k production for the Fin year at an AISC between 1550 - 1700.
With only 11k out of the first quarter, they are going to have to get a massive improvement over the next three to achieve that production target.
They are going to have to get some significant gild out of that stockpile for the rest of the year to achieve even the high end of that figure, for the AISC.
I just don't believe they will achieve it, given past performance.
Mick

 

[mullokintyre]

And just when you think thing cannot get any worse for DCN it hits another 52 week low. of 16.
Market cap now down to 160 mill.
Must be bad if no one wants to take it out at these prices.
Mick

 

[mullokintyre]

Another "significant" drill result.
problem is , the grades are pretty thin, and they are down to nearly 1000metres.
Its going to cost a bit to get that out.
Making me feel decidedly depressed.
Mick

 

[finicky]

Yeah, he should tell us how the hell that becomes economical. Not an announcement that'd get me to buy.
Why do they always assume that investors can make judgements about propects that need geological and mining knowledge? Or maybe they think its better we don't know.
Mineralisation extending to 500m below the base of the current pit at average grade 0.9! What would be the capital cost of developing that, how would they raise it? I can't imagine.

 

[Sean K]

@mullokintyre and @finicky I'm not sure why they didn't put the entire intersection in the heading than focussing on those little hits. For eg, 215m @ 0.9g/t is OK for a mass volume/low grade porphyry type deposit. But, this isn't a porphyry.

 

[mullokintyre]

@mullokintyre and @finicky I'm not sure why they didn't put the entire intersection in the heading than focussing on those little hits. For eg, 215m @ 0.9g/t is OK for a mass volume/low grade porphyry type deposit. But, this isn't a porphyry.

Every time I see that term porphyry, I think of porphyry pearl, that fine sparkling wine from the 70's.
Some of the less elegant males that I knew referred to it as that "intimate french wine, Le Gopener ".
Released some more "oustanding" intersections below the open pit.
Better grades than the last announcement, but still deep and costly to get.
yet to fill me with excitement.
Mick

 

[mullokintyre]

Every time I see that term porphyry, I think of porphyry pearl, that fine sparkling wine from the 70's.
Some of the less elegant males that I knew referred to it as that "intimate french wine, Le Gopener ".
Released some more "oustanding" intersections below the open pit.
Better grades than the last announcement, but still deep and costly to get.
yet to fill me with excitement.
Mick

Looks like the market was not impressed either.
Down 5% this afternoon on above average volume.
Not one of my great investments.
Mick

 

[Sean K]

Every time I see that term porphyry, I think of porphyry pearl, that fine sparkling wine from the 70's.
Some of the less elegant males that I knew referred to it as that "intimate french wine, Le Gopener ".
Released some more "oustanding" intersections below the open pit.
Better grades than the last announcement, but still deep and costly to get.
yet to fill me with excitement.
Mick

It looks like there's a lot of gold under that open pit. It's true width is about 100m and it's going to hundreds down. Same with the Heffernan's Pit. Is it something you go underground for though? Too bad you couldn't do something like a uranium ISR and just suck it out.