DMM - DMC Mining

[adobee]

Company associated with the director bought another $500k of shares ... he must be feeling pretty postive about a rerating as well one would guess ..

 

[tigerboi]

Well you all know the harlem shuffle?

All you dmc holders go nuts when ya gets a 2 bagger+....tb

its called....run dmc....walk this way!!

http://www.youtube.com/watch?v=9AKaV911uJA

 

[grace]

Company associated with the director bought another $500k of shares ... he must be feeling pretty postive about a rerating as well one would guess ..

Sorry, can you give me more details of asx announcement......I can only find the 1million options issued to Directors for nil consideration. Thanks in advance.

 

[YOUNG_TRADER]

Company associated with the director bought another $500k of shares ... he must be feeling pretty postive about a rerating as well one would guess ..

Sorry, can you give me more details of asx announcement......I can only find the 1million options issued to Directors for nil consideration. Thanks in advance.

Hey Adobee, I see what Grace see's (gosh did I just say that? : ) seriously though, I too only see the Director Options, is that what you were referring to?

If so they were 1M options approved at the AGM to be given to the directors free, however as they are unlisted options they are worthless unless exercised, and the exercise price is 40c,

I much prefer directors getting unlisted options than big fat salary packages or bonus shares, as their option value is directly linked to the company's share price, its called good Corporate Governance by aligning the interests of directors with us wee old shareholders

 

[Miner]

Company associated with the director bought another $500k of shares ... he must be feeling pretty postive about a rerating as well one would guess ..

Hi Adobee

Are you referring to this notice in ASX about Directors exercising conversion of free options as attached ? There is no $500K purchase shown in Directors Transactions website either

Have a great day

 

[YOUNG_TRADER]

Well was just reading over some DMM ann's and they repeatedly state that the scoping study is due out by May, so that gives them about 7 trading days to get it out, I hope it this week as I have been eagerly waiting for it,

Most important points I will be lookng at are

1. Cap Ex (hopefully broken up into stages and different components)

2. Op Ex (again hopefully broken up ie stage 1 stage 2)

3. Time frames (they say a DSO operation in a couple of years, hopefully they back this up)


Waiting with anticipation

p.s. small volume but still above 80c

 

[adobee]

Sorry my bad i didnt read the announcement correctly just quickly glanced at it .. Appologies to all !

 

[YOUNG_TRADER]

Looks to be doing the slow steady build,

The chart looks interesting, almost looks like one of them inverted triangles, or wedges or ascending triangle, Kenna you know what I'm on about right?

Hey guys following up from my previous newb chart observation I still see this ascending wedge/inverted triangle/rising thinggy, will a chartist please put me out of my misery, whats this formation called that I'm thinking of?


Also I see strong support at 60c, resistance $1.05

This wedge thing has got me interested, but it could be nothing


Anyway regardless of all this the scoping study should imo cause a second upward surge


I still firmly maintain my $1.50 - $2 target based on all my past calculations and extrapolations as well as the fact that with a comparable project DMM is still trading at 1/10th that of SDL

 

[kenny]

Nice to see options being exercised.

As a recent reader to this thread; can someone explain why the options are selling at a discount to the heads (exercised)?

Is there something about them that is on the nose compared to the stock?

Cheers,

Kenny

 

[Gekko]

Nice to see options being exercised.

As a recent reader to this thread; can someone explain why the options are selling at a discount to the heads (exercised)?

Is there something about them that is on the nose compared to the stock?

Cheers,

Kenny

I can only speak for myself but i failed to realise that there were options until a week later when it was brought up here. Theyre is a wide spread between the buy/sell and the 3000 traded today only make $1500 all up.

Anyone heard anything with the Scoping Study? Would be nice to have it released soon on the back of EPS's 400% this week. If i only i bought some Cant have them all

Even apart from epsilon, all the iron ore stocks are finding lots of buyers irrespective and many news highs have been broken

 

[YOUNG_TRADER]

Patience Gekko patience,

The mkt is still digesting and coming to terms with the DMM story,

The JORC resource along with the Target backed up was a milestone for the company

The Scoping Study will also be another milestone for the company,

As I said the Most important points I will be lookng at are

1. Cap Ex (hopefully broken up into stages and different components)

2. Op Ex (again hopefully broken up ie stage 1 stage 2)

3. Time frames (they say a DSO operation in a couple of years, hopefully they back this up)

 

[Go Nuke]

Actually if the share price gets up a little more we will be looking at a cup and handle formation.

Am i right?? I think i am
Good to see 80c still holding

 

[kenny]

I think the scoping study was meant to be out sometime in May, Gekko.

Thankfully the lack of news hasn't led to a slide in sp.

The DMMO's have a 30/06/2009 expiry. Exercise price 20c.

I think there's some 24 million DMMO's floating out there. Compared to 35.9 million shares.

YT is the best informed one here (thanks YT!) but here's a recent Intersuisse report that helped answer some of my questions.

Cheers,

Kenny

(Copyright and opinions are Intersuisse's of course)

DMC Mining Ltd DMM Wednesday, 14 May 2008
Emerging West African iron ore project

Recommendation: Speculative Buy

Overview

DMM has announced an initial resource estimate for its Mayoko (80%) iron ore project in the Republic of The Congo. The resource, based on 26 historical diamond drill holes, totals 33 million tonnes averaging 55.5% Fe, 0.1% P, 10.4% SiO2 and 3.8% Al2O5. Geological modelling of the project has outlined a target of 110 to 135 million tonnes of hematite enrichment at 55 to 58% Fe and 750 to 800 million tonnes at 35 to 45% Fe. Of the 26 holes comprising the resource estimate, 25 ended in elevated iron grades and therefore portions of the deposit are considered to be open at depth. DMM conducted the resource estimate following acquisition of an 80% interest in the project in December 2007. The project covers 1,000 sq km.

A scoping study is currently underway by GRD Minproc and covers capital cost estimates, including mining, processing and infrastructure, operating cost and an assessment of mining, processing and transport options. The study is due for completion in May 2008 and is based on production of up to 11 million tonnes per year of hematite.

The Mayoko project lies over the Precambrian Congo Craton of West Africa. The area consists of meta-sedimentary rocks that have been metamorphosed up to granulite facies and are around 2,540 million years old. Enrichment of iron occurs within deeply weathered iron-rich metamorphic rocks, that have been termed “Chapeau de Fer” or hats of iron.

The Republic of The Congo is a stable, single party dominant republic and should not be confused with the Democratic Republic of Congo which lies to the south and east. Major oil multinationals such as TOTAL and Chevron Texaco have been operating in the republic uninterrupted for approximately 30 years.

The project is close to a heavy haulage rail line that was constructed around 45 years ago primarily for the transport of manganese ore to the deep water port at Pointe Noire about 300 km to the south southwest. A recent review by an independent senior project engineer concluded that a new siding will be required to connect to the existing railway approximately 5 to 10 km south of Mayoko and that additional sidings and loops will be required to ensure expedient transport to the coast.

The project will have to maintain its own power supply as the local power station has limited capacity and there are no other overhead transmission lines in the vicinity of the project area. In terms of water supply, the Lagesse River, a substantial water course, is located 5 km to the west of the project.

DMM intends to conduct a gravity survey in June 2008 to be followed in July by in excess of 20,000 metres of drilling in order to delineate further hematite resources at the project. The exploration program will also include pitting and trenching.

At a shareholders meeting scheduled for 15 May, 2008 the company will seek approval for the issue of up to 20 million shares in order to raise funds for further exploration and evaluation of the Mayoko project. In addition approval will be sought for the issue of up to 11.83 million shares and 11 million options to various parties in connection with the acquisition of the Mayoko project.

Impact

In a rapidly evolving project the results of GRD Minproc’s scoping study into the Mayoko iron ore project, expected to be delivered later this month, are eagerly awaited. DMM has emerged with an 80% interest in a hematite plus potential magnetite iron ore project in the relatively risk free Republic of The Congo. A rail line to a deep water port is at its doorstep.

 

[YOUNG_TRADER]

Hey Kenny

Thanks for that,

Can I ask is that the report in full?

Is it the first coverage Intersuisse has ever given DMM? I'd say so as I wasn't aware that anyone was watching the company,

So this is another vote of confidence imo, ticking off the boxes to a full re-rating

 

[Gekko]

Kenny you have got my attention. can you post the full intersuisse report or provide a link.
Did they give a price target? As the shares were at 80c at the time of writing, i presume a target is for 1.40 upwards

 

[kenny]

np YT and Gekko. Glad to be able to contribute.

I got it from Intersuisse but DMC have it on their site now.

http://dmcmining.com.au/uploaddir/newspdf/Pdf_48.pdf

I would recommend you open the link in a new window.

YT, the only part of the report I didn't paste is below. I thought it curious that the report didn't have a price target as Intersuisse normally have some guidance.

Cheers,

Kenny

Snapshot
Last Price $0.78
Market Cap (m) $28.0
52 Week High $1.18
52 Week Low $0.1793
Sector Metals & Mining
Investment Fundamentals
Cash reserves $1.0 million
Shares on issue 35.9* million
Options on issue 24*m listed 20 cent options
3*m unlisted options
Directors David Sumich (Executive)
Bruce Franzen (Non-exec)
William Witham (Technical)
Major shareholders Ekul Nominees 22.62%

 

[Atma]

bit concerned with this one

my concerns are

-remote from a port (500km)

-rail line is 45 years old, and the tonnage capacity insufficient

-JORC has only 33mT of mineral, and most of the targets are low grade magnetite. Also the haematite average grade is barely Direct ship material(55%). In iron, a few % means a big deal(unless its Pilbara CID)

-The haematite has 10%+ silica. High impurities are bad.

-Africa is infrastructure poor. this project is years off.

 

[Gekko]

bit concerned with this one

my concerns are

-remote from a port (500km)

-rail line is 45 years old, and the tonnage capacity insufficient

-JORC has only 33mT of mineral, and most of the targets are low grade magnetite. Also the haematite average grade is barely Direct ship material(55%). In iron, a few % means a big deal(unless its Pilbara CID)

-The haematite has 10%+ silica. High impurities are bad.

-Africa is infrastructure poor. this project is years off.

Sounds like you havent done your research (we can forgive your its only your 3rd post)? Let Intersuisse help you.

Intersuisse say this with regards to rail and infrastructure:

"The project is close to a heavy haulage rail line that was constructed around 45 years ago primarily for the transport of manganese ore to the deep water port at Pointe Noire about 300 km to the south southwest. A recent review by an independent senior project engineer concluded that a new siding will be required to connect to the existing railway approximately 5 to 10 km south of Mayoko and that additional sidings and loops will be required to ensure expedient transport to the coast."

Intersuisse say this with regards to the country:

"The Republic of The Congo is a stable, single party dominant republic and should not be confused with the Democratic Republic of Congo which lies to the south and east. Major oil multinationals such as TOTAL and Chevron Texaco have been operating in the republic uninterrupted for approximately 30 years."


From memory the most recent announcement said they expect to be mining in 2 years. I wouldnt classify that as "years off".

Intersuisse have no relationship with the company so are partial observers. Some would even call their analysts 'experts' and 'professionals'. So they would like to think anyway. Thats what their name badge and salary says any how.

 

[YOUNG_TRADER]

bit concerned with this one

my concerns are

-remote from a port (500km)

-rail line is 45 years old, and the tonnage capacity insufficient

-JORC has only 33mT of mineral, and most of the targets are low grade magnetite. Also the haematite average grade is barely Direct ship material(55%). In iron, a few % means a big deal(unless its Pilbara CID)

-The haematite has 10%+ silica. High impurities are bad.

-Africa is infrastructure poor. this project is years off.

Its fine to have concerns and present the opposite view, unchecked optimism is usually dangerous!

However all I keep saying is everything has to be kept in perspective and my 2 arguments are as follows,

1. A look at YML's/BRM's history shows that many were concerned with the fact that the material was found under 50M's of top soild and had some high levels of impurities, however at 16c YML's mkt cap was so undemanding that I believed regardless given the ptoential the project had the stock warranted a re-rating to a much larger mkt cap (now 20x larger) at this new 20x larger mkt cap some still raise the concerns which have always been valid, howver at the current 20x larger mkt cap the question arises is the risk to reward ratio in favour of the company? I will leave that to be answered by others

2. Following on from the above point, a simple comparison to SDL shows that DMC with a similar project is still trading at 1/10th of SDL's Mkt Cap, sure the project carries risk, the impurities are high and the rail is old, but the fact remains that DMC with a similar project is still trading at 1/10th of SDL

So as before I am saying yes I acknowledge the risks however the rewards are imo much much greater and thus warrant the company having a much larger mkt cap and it looks like intersuisse agree's with me


So bottom line, given DMM's undemanding mkt cap the risk to reward ratio is still very much in our favour, but thats just my thoughts

 

[Gekko]

Hey YT

So when did you say that scoping study was due? I reckon its very soon like tomorrow
I say this because I have watched the stock and options closely and today just before the close a largish buy order went through on the DMMO that just ate up a few lines of sellers

What do you think?