DMM - DMC Mining

[Go Nuke]

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

 

[blehgg]

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

 

[Duckman#72]

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

 

[adobee]

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 ?

 

[YOUNG_TRADER]

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

 

[alankew]

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

 

[serg261]

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!

 

[Wysiwyg]

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

 

[YOUNG_TRADER]

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

 

[Go Nuke]

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*

 

[Duckman#72]

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

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

 

[Largesse]

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?

 

[d_crome]

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.

 

[Go Nuke]

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?

 

[alankew]

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

 

[d_crome]

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.

 

[rhyslivs]

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

 

[jbowman101]

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

 

[adobee]

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..

 

[jbowman101]

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