Member Info for Daisan

DAYTRADER007, I'm not sure what the value of putting a 'strong sell' rating is on a share that is suspended!

On the face of it that appears to be very naughty indeed!

myepic, Whether or not geopolitical has increased as a result of the Presidential election, I don't think that this is the driver for the price here. Gold has reacted contrary to what many thought as a result of the election and pretty much all gold miners are suffering as a result. AAZ is no exception and, given that it has been one of, if not the best performing gold miner, it is no surprise to see this fall sharply from the recent highs. There are several technical analysts I follow that have been flagging a fall in gold and some are still suggesting a retest of the December/January lows although this is still a minority view. Retesting those lows would put a lot of pressure on gold miners although most are in a substantially better financial position than they were in January (for example, if we look at an average gold price of $1250/oz rather than $1050/oz, AAZ have made $12m more than expected for this year).

Well KNIGELK, my target price for a fully operational mine with no further dilution was 25p! Just goes to show how fraught the process of starting up a mining operation is although, to be fair, I thought that we had already had the 'water' element a couple of months ago! Two floods seems a little unfair.

Well, in a lot of cases the company in business rescue is one which is in terminal decline. DCP has a valuable asset that will be of interest to some companies. The critical point is how many? If there is only one interested party then any deal will be low. However, the more serious parties there are (rather than wealthy asset strippers with an opportunistic punt) the higher the price is likely to be. It would be interesting to know the price of the recent offer(s).

Well, quite clearly somebody doesn't like someone connected to DCP! Difficult to see them getting the funding to survive this when all parties will clearly see that they can get the asset for a song now. Best hope is that there are more than one interested parties so that there is something left for shareholders. I feel for PL. He has put his soul into this for years.

I tend to agree. The number of (smaller) sells has been substantial. However, there have been some larger trades which are not in the realms of 'normal' PIs and would suggest hnwis or, perhaps, an institution buying through the market. If so, they have timed it at a point of gold weakness but subsequent to the US election, although there have been some substantial trades over the last few weeks. Interesting. I haven't really been looking out for substantial trades in this but I will now. Also, it would be interesting were a TR1 notice to drop.

I wouldn't have thought that people would consider geopolitical risk has increased as a result of the election. I suspect it is simple down to some profit taking as this has risen a very long way over the past few months which has only accelerated over the last few weeks as it begins to reach a value more commensurate with the operation. Still a way to go for that but no longer the screaming bargain it once was.

Oli12, Exactly the point. Anyone selling below the highest buy price paid by a member of the concert party is selling too low. There are no guarantees on AIM but that level is as close as you are going to get.

Never overestimate the intelligence of an AIM investor!

Sorry but I disagree on this. They are indicating that the 15000 tonnes rate mined has a grade of 29cpht. This is what they have stated as their target for the month and this is what they are confirming is on target for delivery. Any tailings processed, and there is certainly the capacity to do so, should be in addition to that figure. As I said previously, we are currently in the position of all news being interpreted in a negative light for understandable reasons.

I don't believe that this is the case. Reading between the lines suggests that this figure is somewhat higher than they were anticipating. They didn't have to announce this in the RNS and are just trying to reassure the market that things are on track or better. The share price reaction is anomalous and indicates that people expect all news to be bad on this. It doesn't take much interpretation of this RNS to suggest that PL is exasperated with the market valuation but long term survival is the only thing that will get the share price back on track.

The resource is a bit more nuanced than that. That is the overall figure but the grade improves with depth. Have a look at the resource statement on the website and you will see that the current grade is likely to be somewhat lower.

Is it? I confess my instant reaction was that the grade is higher than I expected considering that we are almost certainly still getting a mix. If you look at the resource statement you would have to be getting very much the majority k4 to get this grade.

Quite possible. There have been a few fairly sizeable trades today but they have been absorbed by the 700k trade just showing. Doesn't take a genius to work out who that was. I still think that people have helped them out too much with this. With the knowledge that there was a buyer out to get 20m+ shares this should have been hammered higher but clearly a lot of holders just wanted out after years of disappointment. You can't blame them but they should have seen the change in fundamentals as a result of Labro's buying and held on to see where Labro were going to take this.

12.75p paid and a good chunk taken at 12.5p as far as I can see on Google although not showing here at the moment. Things look to be hotting up and with Labro continuing to provide buying pressure, we may well see the 15-20p range within a relatively short time frame.

Korg, This is a producing gold mine rather than a 'project'. Capex will always be significant but you indicate that it is rising. They are paying down debt at a reasonably quick rate and will be able to weather a turn down in the price of gold. You seem to be suffering from 'non-specific-itis'. You say that they have to up capex. Could you please state precisely what it is that they will HAVE to up capex on?

That is basically a 'somebody please buy us' presentation and it has to be said it does, on the face of it, make for a compelling case. A comparison with Kyzyl (one of the deposits mentioned) is quite instructive. Whilst Kyzyl has a somewhat greater resource at a higher grade, it has a published AISC higher than CGH's (not sure how given the grade disparity but there you go). Kyzyl was bought by POLY for up to $1bn. I suspect that CGH will not quite reach those lofty heights.

Korg, The debt profile is on a downwards path currently and clearly looks to be under control. I would be disappointed if they fund raised in such a situation but have no problem with increased capex provided there is a strong business case for doing so, such as connecting to the national grid for example. The company seems to be making hay whilst the sun is shining and paying down debt rather than keeping cash on hand which shows a level of confidence in their current operations. What additional capex items are you expecting in the future beyond those already underway?

Well reasoned argument! The debt is coming down rapidly as the cash generation in H1 2016 was at an annualised rate of $34m. This should continue. Given the gold price currently and the cash costs/AISC (just published) the market capitalisation is be no means very high and should go higher as they pay down the debt.