RE: Market reaction5 Sep 2025 22:35
In my opinion the only negative following the half year reporting the lower net income for the first half, mainly due to the cost of LTIP charges, which is non cash, and PE ratio was adversely affected. The LTIP was a significant figure which did dilute long term holders.
However the plan for getting La India operational, which looked challenging at the outset, has consistently been achieved. The biggest risk was the successful finding and movement of the plant from Alaska, where weather extremes can easily thwart such movements. Now we have a successful cash generating operation, aided by further increases in Gold price this week which has and will continue to fund the La India construction and the acquisition of further drilling capacity and testing facilities.
Clearly good progress towards completion of the La India facility and subsequent gold pour in H2 2026 are the most critical, and I believe that Dupax will be extra icing on the cake.
Whilst I do like the prospect of dividends, which add credibility to the investment proposition, (which would be lost if funded by borrowing). Consistent Profitability and asset life are the most critical components of valuation for mining investments.
I feel very fortunate in being able to hold a investment here, and appreciate DB and his teams efforts.