DMM - DMC Mining

[J.B.Nimble]

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]

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]

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]

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]

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]

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]

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]

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]

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
as its Chief Executive Officer.
Mr. Di Dio joins DMC Mining Limited with over 25 years experience in the resources industry
both locally and internationally. Mr. Di Dio has held senior positions with BHP Billiton,
Worley Parsons and GRD Minproc.
With outstanding commercial and technical capability, his resume includes working with
organizations such as Rio Tinto and ALCOA, Fortescue Metals and with BHP Billiton. Mr Di
Dio has extensive experience in the delivery of mineral and mineral processing projects from
junior mining houses through to blue chip international organizations in the base metal and
Iron ore commodities. Additionally Mr Di Dio has experience in the Oil and Gas, Power and
Infrastructure sectors.
This appointment brings vital industry experience, leadership and key Iron Ore expertise to
DMC Mining Limited.
Mr. David Sumich Managing Director of DMC Mining Limited commented: “DMC is fortunate
to have secured the services of a senior executive with his iron ore capability and
experience.”
Mr. Di Dio CEO of DMC Mining Limited commented: “I am pleased to have been invited to
join and lead the dynamic team at DMC Mining. The Mayoko project is a world class Iron
ore opportunity and I am excited at the prospect of delivering true share holder value from
this project.”...

 

[d_crome]

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]

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]

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]

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]

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]

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]

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]

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]

Re: DMM - DC Mining

Dry screening-sounds like sieving basically,wouldnt imagine it would cost too much.Any Geos help here

 

[Go Nuke]

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]

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!