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DEG - De Grey Mining

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Make a lot of sense.
 
Heading back up into a 'toppy' zone again. MC at $2b. Yikes.

Didn't participate in the SPP as I thought I could just buy it on market at a cheaper price. Dumbass.

A few gold companies have had a very good last few months perhaps pricing in a bottom on POG. Not really convinced, maybe a bear trap.

 
Rabbithop said:
OMGosh! Did I missed my chance..it's power charge the last couple of days
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Dunno. The time to have bought into quite a few gold juniors/explorers might have been when they were in the toilet a few months ago. Quite a few still are in the toilet, but I don't think DEG qualifies for that with a market cap of $2b, that seems pretty big for an explorer/developer and as per @The Triangle 's comments on valuation to projected NPV this might be fully priced. But, when there's takeover talk and a few of the major gold companies need to replace ounces, anything could happen.
 
True indeed.
 
DEG approached that resistance area and got scared away. Still some chatter in the news about Barrick sniffing about and when linked to the OZL-BHP excitement that's probably the reason this ran a bit the last week or so, but well off the lows. I'm just holding and waiting for the takeover offer. A 500k ozpa gold mine can not remain in the hands of an explorer. The majors must replace their ounces and they are sitting just inland from Port Hedland. Big capex, but it'll be paid back in under 2 years.

 
Captain_Chaza said:
I have entered my old faithful DEG in the 2023 C/Y Regatta

The Good Just Get Gooder!

Sailing the DEG ---------One Day at a time
View attachment 151163

Salute and Gods' Speed

View attachment 151164
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Would have been good in the monthly comp too.

Looks like it's trying very hard to go through that $1.40 resistance, might have done it. I've had to skim some profits on this run up. $2.2b MC is getting pretty rich at this stage. Unless something is in the wind.

 

Happy to have left some on the table, but MC over $2.5b.... yikes. Might have expected that if gold had run over $2k but that's no sure thing. Maybe Mr Market is factoring that in. $1.60 looks like a difficult hurdle.

 

De Grey Mining (ASXDEG) attracts Mallina funding proposals from 14 potential lenders​

De Grey Mining (ASX:DEG) attracts Mallina funding proposals from 14 potential lenders

De Grey Mining (ASX:DEG) has the pick of the litter when it comes to financing the development of its flagship Mallina project in WA, with 14 lenders offering the proposed cash.
themarketherald.com.au

According to De Grey, most of the potential lenders indicated a traditional debt funding capacity of around $800 million based on De Grey’s September 2022 pre-feasibility study for the Pilbara-based project.

For reference, the study estimated pre-production capital costs for Mallina of $1.05 billion, though the project was estimated to produce enough gold to pay this back within two years.

Live charts: https://uk.advfn.com/p.php?pid=staticchart&s=ASX^DEG&p=0&t=1
 

De Grey Mining (ASXEG) outlines new gold zone at Mallina, WA​

De Grey Mining (ASX:DEG) outlines new gold zone at Mallina, WA

De Grey Mining (ASX:DEG) has identified a new gold zone within its Mallina project in Western Australia's Pilbara region.
themarketherald.com.au

The zone was defined at Withnell South and comprised several lodes over 800 metres of strike and 200 metres vertical depth, remaining open to the east and at depth.

Assay results from the reverse circulation drilling included 20 metres at 1.62 grams per tonne (g/t) gold from 110 metres, and nine metres at 4.6 g/t from 159 metres, as well as 17 metres at 1.38 g/t gold from 70 metres.
 
Some excellent infill here. Should take a lot of Brolga to Indicated for the DFS.

Extension drilling looks very positive but when you look at the cartoons of the deep intersections I wonder if they'll actually add up to many extra ounces to be mined.

Hole HMRC348D with 6m@20g/t (excellent) and 219m@0.6g/t (pfft) is maybe not UG mining potential for this deposit, unless the gap between that hole and the current resource is filled in with some really consistent hits.

But, when you look at the cross section cartoons of the other holes, most hits under the pit shell is very low grade and almost inconsequential and probably wouldn't be mined, if at all, for a couple of decades.



 
Sean K said:
Happy to have left some on the table, but MC over $2.5b.... yikes. Might have expected that if gold had run over $2k but that's no sure thing. Maybe Mr Market is factoring that in. $1.60 looks like a difficult hurdle.

View attachment 152005
Click to expand...

$1.60 once again failed as anticipated. Not sure what will break it out of this sideways move other than another big deposit find, POG breaking $2075, a takeover offer, or exceptional DFS mid year.

The Brolga extension drilling was positive and will add to the Indicated and a few more thousand ounces in inferred at depth, but I don't think MRE upgrades will be that significant from now. They have enough to start a very big mine.

I think the risk is that the DFS comes in with a much larger Capex than in the PFS. It was about $1b but there's every chance, due to inflation and the increased size of the deposit, and perhaps an underestimate of the POX $$ part of the flow sheet that it's way higher. If it comes in closer to $1.5b then it could really spook the market, and me.

 

Had a good think about my last post and I'm struggling to see major upside from here unless there's a bit of good fortune, but there's quite a bit of downside if they execute this poorly and the DFS isn't a surprise to the upside, so I'm taking a break from DEG until I'm more sure of decent upside. Locking in some decent gains maybe the more prudent thing for me at this juncture. Thank you DEG, you have been a good servant over the past year and a bit. I may be back.
 
Sean K said:
Happy to have left some on the table, but MC over $2.5b.... yikes. Might have expected that if gold had run over $2k but that's no sure thing. Maybe Mr Market is factoring that in. $1.60 looks like a difficult hurdle.

View attachment 152005
Click to expand...

DEG managed to get through $1.60 for a bit, retraced and back through again. Amazing stuff. There must be a lot of extra ounces factored into this, or a takeover premium included.

I'd be happy to relook at it after a decent correction, but it's looking pretty well priced here for an early developer.

POG breakout could still send it much higher I guess.

 
DEG resources getting better and bigger. It's going to be a very long life project. Hard to believe it's so close to a port and infrastructure. Probably all explains the EV which is huge for an explorer / developer.

This lode looks like it's going to contribute many more and high grade ounces.

Still surprised someone didn't take this out earlier. Going to cost a pretty penny in any M&A deal.

 
That decent correction has happened on the back of POG, perhaps the only real reason and maybe some profit taking. MC back to about $2b (was $2.5b not long ago) which is still high, depending on the DFS due mid 23. Will be very interesting to see the revised capex numbers. Last price was about $1b.

Just sitting on a bit of support.

 
DEG mentioned in one of the business pages yesterday or before in regard to the simering M&A environment for resources in general and particularly gold.

This has held on to that support level tenuously, but maybe POG still has a bit to correct? Not sure, as both POG and GLD sitting on obvious support levels along with DEG at the moment.

Betting on DEG at the moment is a bit of a risk until the DFS comes out mid year, IMO. I think the capex could scare the bejeezus out of some punters. Although, NPV could be enormous with another MRE update and increased mill size/throughput and LOM.

Will probably head into the 'orphan period' of the Lassonde Curve after the DFS until funding is sorted and they start development.

 
This is looking interesting again @finicky.

Between the blue lines looks tasty. Or, anywhere near them, really. Unless POG collapses.

I bailed because I thought it had run ahead of itself but it's come back to a reasonable EV. The thing that's going to scare the market will be the DFS capex which will be frightening.

I'm still surprised a major hasn't bought this, even though it's so expensive as an explorer. Maybe there's something wrong with it that the average punter doesn't understand, other than the requirement for a POX circuit that is pretty standard.



 
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