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DOM - Dominion Mining

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sky surfer

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Has anyone been following the stratospheric rise of DOM?

The rapid rise in the sp has been amazing when you compare it with similar goldies such as AVO, RSG, OGC. It's even outperformed a fully de-hedged LGL by a huge margin. I looked closely at DOM a few months back but decided to go with LGL (for good exposure to increasingly high POG) and MML (good potential growth and currently producing at low cost, albeit small scale) instead.

What did i miss that is making the sp rise so much faster than every other goldie?
 
sky surfer said:
Has anyone been following the stratospheric rise of DOM?

The rapid rise in the sp has been amazing when you compare it with similar goldies such as AVO, RSG, OGC. It's even outperformed a fully de-hedged LGL by a huge margin. I looked closely at DOM a few months back but decided to go with LGL (for good exposure to increasingly high POG) and MML (good potential growth and currently producing at low cost, albeit small scale) instead.

What did i miss that is making the sp rise so much faster than every other goldie?
Click to expand...

Hm not bad, do you know what the expected mine is?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 22.0 70.9 68.4 58.7
DPS 10.0 10.0 8.0 0.0

Dominion Minings strategic goal is to continue to produce low cost gold from the underground Challenger mine in South Australia. Production exceeds the 100kozpa level, with production in FY07 of 108koz. Management has been at the company a long time and are very conservative. Low cash costs at Challenger of A$345/oz in FY07 is further testament to their operational expertise. Challenger continues to over reconcile in both grade and tonnage and is another example of Managements conservatism. DOM has chosen to focus on in mine exploration to extend mine life rather than developing or acquiring new projects. This has resulted in the discovery of the Shadow Zone, a high grade shoot parallel to the main ore bodies. DOM has farmed out a number of exploration properties around Challenger and in other parts of SA and WA so it can focus on its core expertise of producing gold. Management is currently conducting a study on expanding production to levels as high as 140kozpa. Any incremental capital costs should be minimal given that DOM already has a spare ball mill. Expanded production would require a further reserve upgrade which is expected to occur in the September or December 2007 quarters. An upgrade should ensure mine life continues for a minimum 5 years even at the higher production level. DOM is in the enviable position of producing low cost gold which effectively underwrites all exploration activities both in mine and at other greenfield exploration properties. Dominion Mining reported NPAT up 47.5% to $51.75m for the year ended 30 June 2007. Revenues from ordinary activities were $81.83m, up 20% from last year. Diluted EPS was 51.28 cents compared to 8.84 cents last year. Net operating cash flow was $43.1m compared to $30.55m last year. The final dividend declared was 6 cents, taking the full year dividend to 10 cents compared with 4 cents last year.
Click to expand...
 
I bought some on 22/01/2008 (black Tuesday)- In fact this is the only stock I bought on that day when the whole market freefalling.
(got +30% now just in 3 days)

I like the mine they got, lots of drill sampes are over 100g/t. - That is excellent quality and very rare in the industry.

So in summary -
The fact: small-mid cap gold miner with consistant cash flow, incresaing profit every year, low costs operation compare to industry peers, production increased, good financial position - no debt, low P/E
The future: higher grade reserve for furture operation and gold price is raising....

What more can you ask....I will keep it for long term.
 
Just study DOM last year financial report during the weekend, realized more than half of the profit made last year was one-off items.
So even the gold production and gold price had increased, but my calculated forecast EPS this year is not as good as reported on commsec. (not sure how they get their figures from)
Even the future of mine is good, it still make me worry with the current share price.....

May move my money to other gold miners when I still making profit ..... ;)
 
re DOM and TRY
Make of it what you will but you better hope the crows dont come back, looks to me like dom could stall and try could go past, what do you think?
all care no responsility, dyor
Happyjack
 

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Could not find a thread for DOM so started one.
I own DOM. A good conservative company IMO.

Here is part of an ASX announcement from end of last month.
CHALLENGER DEEPS DRILLING UPDATE

High grade intersection demonstrates the potential to extend the MI Shoot reserves.

Further outstanding results, including an intersection of 5.39 metres at 351.0 g/t gold have been received from an ongoing programme of surface diamond core drilling to test the depth continuity of the Challenger M1 and M2 Shoots.
This intersection has been returned from the 81 Series of holes designed to intersect the shoot system down to the 200m RL (i.e. 1,000 metres below surface).
To date the parent hole, 08CDDH0081, and the first daughter hole, 08CDDH0081W1, have been completed. A second daughter hole, 08CDDH0081W2, is currently being drilled and a third daughter hole is planned. The results of these drill programs are expected to be available by the end of July.
Significant intersections from the first 2 holes are tabulated see announcement:

The intersection of 5.39 metres @ 351.0 g/t gold demonstrates the continuity of the critical very high grade ‘hinge zone’ of the M1 Shoot at the 255m RL. This is 125 metres below the currently estimated lower limit of reserves for this shoot.
These results together with the previously reported (ref ASX Release of 29 May 2008) intersections from the M1 Shoot in the 80 Series drilling (including 4.00 metres at 22.4 g/t gold and 12.50 metres at 13.8 g/t gold), should allow for a material increase to the M1 Shoot Reserves.
The drilling is also confirming continuity of the M2 Shoot below the 300 metre RL (the base of currently estimated reserves for this shoot).
There have also been significant high grade intersections (0.53 metres at 187.2 g/t gold and 1.95 metres at 30.1 g/t gold) in additional shoots down to the 195 metre RL (1,000 metres below surface).
These are the deepest intersections ever returned from the Challenger shoot system which remains open at depth.
A revised Resources and Reserves Statement is scheduled to be completed by the end of July 2008.
 
Discman, if you are still around, your comment on
Commsec's Company data is not the first time
I have seen it questioned. It may be best to
extract what you need from the Company Report.
 
frotman
Hi mate, I am still around. I sold my DOM share in Jan for $4.30 per share. :D
By further studying DOM in the last 6 months, no doubt, The Challenger gold mine which DOM has, it’s one of the best gold mines in Australia in term of grade.

It has lowest cash cost around $367/ounce, but here the catch, the remaining reserves are around 625,000 ounces, which will only last for another 6 years operation with current production rate. (Confirmed by the director on March radio report)

From the half yearly report, DOM was making $14M profit for the first 6 months with 56,026 ounces at a cash operating cost of A$351/ounce.
Based on the March quarterly report, the forecast production for the year is 108,000 ounces at around A$370/ounce cash cost.
With the help of recent high gold price, so it’s fair to say it should make $30M~32M profit for the full year.
With current market cap $340M (at $3.33 per share) that translates to P/E ratio 11. (that is why I got confused with comsec data :confused:)

Now 11 is almost twice of the mine life of Challenger (6 years). :eek:

I looked at other prospects DOM has, they are all a bit low grade in term Au, Cu.

I seem a lot of good news from recent drilling reports, but I will wait until they confirmed number of the reserves increase before I re-invest to this company.

For other holders, good luck! I hope the reserves increase come out to be good value. :)
 
Hi,

what`s wrong with Dominion at the moment?
Is it because production has decreased and cash cost have soared lately?
Or is there a structural problem at this mine underneath?
Thanx for sharing your view
 
jacomo said:
Hi,

what`s wrong with Dominion at the moment?
Is it because production has decreased and cash cost have soared lately?
Or is there a structural problem at this mine underneath?
Thanx for sharing your view
Click to expand...

Not much interest in Dom on this forum.
I would have thought after their quarterly that this would have picked up.
Expected an upgrade in resource lower production cost & the present cost of gold should have contribute to an upside in DOMs sp imo instead the opposite.
Any goldies on the forum have an opinion on DOM?
As i see it atm their only downside is they have only the one mine albeit with good grades at low costs with next quarters production anticipated to be a lot better.
 
jancha said:
Not much interest in Dom on this forum.
Click to expand...
No wonder. More than halved in a year. What happened? If they're going ok, why the collapse? Major support across $2.00. ANy funnymentals?
 

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TheAbyss said:
Offer on the table valuing DOM at $3.63 a share. Current price for DOM is $3.23 so if the never take the first bid theory works then a bit of upside left here if a 2nd bidder appears.

Also some speculation that KCN may get swallowed up afterwards so the KCN shares may be a worthwhile form of payment.

Thoughts?

http://www.theaustralian.com.au/bus...ct-bids-analysts/story-fn4xq4cj-1225941607954
Click to expand...

there may be some money still on the table with DOM but not much at this rate.
the offer is 0.31 KCN for every DOM share.
current price is 3.25 for DOM and 10.90 for KCN.
that curently implies a value of 3.38 for DOM shares.

That doesn't take into account that there is currently a sell off underway for the KCN shares, so if it meets half way, it may look more like a rise for DOM of 6.5c or to 3.31. Thats a look in. may be better for DOM and worse for KCN.

But as said in "Kingsgate may attract bids: analysts
Michael Bennet From:The Australian October 21, 2010 11:01AM" the upside may come in the form a revision. But at these premiums from KCN, that revision would probably not come from KCN, probably from some other large gold play. There's a few tied up at the moment already in M/A though...

it looks at first glance like the combined entity could have a very strong advantage in the void left after the LGL / NCM tie up,
just throwing some thoughts around.
 
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