DCN - Dacian Gold

[mullokintyre]

Quarterly out today, say they are still going to make the 100 to 105k production, though not surprsingly costs have now risen to $1750 to !850 and ounce.
Scarcity of labour skilled or otherwise is an issue for them as it is for everyone else.
Nothing but doom and gloom for the old dog.
Mick

 

[The Triangle]

Quarterly out today, say they are still going to make the 100 to 105k production, though not surprsingly costs have now risen to $1750 to !850 and ounce.
Scarcity of labour skilled or otherwise is an issue for them as it is for everyone else.
Nothing but doom and gloom for the old dog.
Mick

I struggled to get past this headline: "December quarter production of 17,200oz at an AISC of $2,288/oz"

They're a good scrappy little miner that will always find ways of getting through, but I don't think DCN has had a good quarter, half, or year since they started. Just not worth the risk on my view at these prices, costs, and now with Covid sure to decimate the local mines.

 

[mullokintyre]

closed at 31 today, up 12%.
I have my first tranche sell at 32.
Will I get my money back after past losses???
Mick

 

[mullokintyre]

DCN continues to dissapoint.
One sentence in the Quarterly results says it all.

As a result, production for the June Quarter is now expected to be 37,000-40,000oz, with full year guidance adjusted to 94,000-97,000oz at an AISC of $1,850-$1,950/oz, slightly below previous guidance of 100,000110,000oz at AISC of $1,750-$1,850/oz.

Production down, costs up.
Really fills one with confidence.
Not surprisingly, given the overnight fall in gold prices, its down 5% on the open.
May never get that 32 I was looking for.
Mick

 

[mullokintyre]

Against my better judgement, I bought a few more at 28.
Gold will have another rally after the takedown overnight, and DCN will probably follow.
Mick

 

[mullokintyre]

Well, it goes from worse to worserer , soon to be worserest.

The rapid change of the operating environment over the past 6 months, has seen significant inflationary cost pressures which resulted in an increase in cost base, prompting a review of the operating strategy as follows:

• Open pit mining operations at Jupiter are to be suspended by the end of June 22;

• Underground operations to continue until the previously developed stopes have been mined in Q1, FY23;
• Open pit mining at Hub at Redcliffe will commence later in FY23 when mining approvals are received;
• Processing of existing stockpiles totalling ~5.0Mt will commence in Q1, FY23;
• Drill testing to focus on Jupiter following continued encouraging results.
To facilitate this change in strategic direction the General Manager for Geology and Exploration, Dale Richards, has been appointed as CEO and Leigh Junk, Managing Director has resigned. Processing of existing stockpiles allows the Company to continue milling operations during FY23 while the Company pivots towards exploration and development under a new leaner operating model that reduces its cost base with the expectation mining operations will recommence in the future.

So Leigh has been Junked. They will stop production to reduce costs.
means that the Directors and to echelon employees can keep bleeding money out of the shell as the shareholders get screwed again.
Another abject failure.
Mick

 

[peter2]

At DCN the last qrtr ASIC was $2000/oz and they were hedged at $2528/oz.
It would seem that their ASIC price has risen much higher than $2500 making their current production unprofitable.

Interesting and the concern is how many other mining operations are feeling the pinch from the higher costs of gas, diesel and their contractors.

 

[Sean K]

Well, it goes from worse to worserer , soon to be worserest.

So Leigh has been Junked. They will stop production to reduce costs.
means that the Directors and to echelon employees can keep bleeding money out of the shell as the shareholders get screwed again.
Another abject failure.
Mick

The Directors need to be Junked here.

 

[mullokintyre]

Sold them all today and took (another loss).
At this rate the SMSF may end up with the only income being from a Tax Return!
Mick

 

[Dona Ferentes]

Genesis Minerals looking to acquire DCN

 

[Garpal Gumnut]

Genesis Minerals looking to acquire DCN

Bugger.

gg

 

[Dona Ferentes]

Bugger.

ed

Genesis Minerals has pulled the trigger on consolidation in Western Australia’s northern goldfields, starting with Dacian Gold and potentially moving on to St Barbara Mining.

It is understood Genesis has signed an all-scrip deal to acquire Dacian Gold, agreeing to pay $111 million or about a 10 per cent premium to the company’s last close. Dacian shareholders would receive 0.0843 Genesis shares for each Dacian share.

 

[Garpal Gumnut]

Genesis Minerals has pulled the trigger on consolidation in Western Australia’s northern goldfields, starting with Dacian Gold and potentially moving on to St Barbara Mining.

Bugger.

gg

My reaction to your original post was due to the fact that I'd looked at the "brave" end of golders and decided to throw a few kopeks at Dacian today.

It would have been my first venture since January in to the lands of Cochise and the Apache. No workings but a mill at Dacian. Ripe for a t/o.

My timing was out.

gg

 

[Dona Ferentes]

My reaction to your original post was due to the fact that I'd looked at the "brave" end of golders and decided to throw a few kopeks at Dacian today.

It would have been my first venture since January in to the lands of Cochise and the Apache. No workings but a mill at Dacian. Ripe for a t/o.

My timing was out.

That was the sense I got, gg. But Dacian rolled over from a position of weakness, and decided to jeter l'éponge.

 

[noirua]

Dacian Gold (ASX:DCN) decreases production amid transition from miner to explorer

Dacian Gold (ASX:DCN) has delivered its preliminary September quarter report in which it highlighted a decrease in production.

themarketherald.com.au

Dacian Gold (DCN) has delivered its preliminary September quarter report in which it highlighted a decrease in production.

The company produced 21,525 ounces of gold in the three-month period from the Mt Morgans gold operation in Western Australia.

 

[rjd900]

So how does the future of DCN play out. Ultimate delisting? As I notice the order book has a lot of buyers.

 

[Dona Ferentes]

Genesis Minerals looking to acquire DCN

housekeeping, clean out the Dacian suite, please.

.

 

[Dona Ferentes]

In simple terms, according to some,
Genesis is now offering to pay 23.5¢ for each remaining Dacian share, having originally offered closer to 10.2¢ for them.

And, if it gets past 95 per cent ownership, Genesis has offered to bump up the price to the equivalent of 27¢ per share

As a scrip bid, the actual value of the offer is constantly changing with the price of Genesis shares.

Genesis is a relatively tightly held stock that likes to do scrip acquisitions, meaning Dacian shareholders will need to decide if current pricing is a fair market.

But the point is clear: the Dacian holdouts appear to be winning, with Genesis willing to pay more to enjoy the full benefits of combining its gold resources with Dacian’s mill.

Because, under the current situation where Genesis owns 80 per cent of Dacian, Genesis would need to pay arms-length market rates to put its Gwalia gold ore through the Dacian mill.

 

[System]

On November 20th, 2023, Dacian Gold Limited (DCN) was removed from the ASX's Official List in accordance with Listing Rule 17.14, following compulsory acquisition of its remaining securities by Genesis Minerals Limited.