Member Info for Daisan

Thanks Dibs61. You are obviously a better trader than me! It is always good to have the numbers confirmed. I have been on the wrong end of bad numbers too often to assume anything which is why I won't call for more than 19k oz next time around. I am happy that the company are keeping their guidance conservative as it is better to over deliver.

Thanks comeonvog. I am a pretty simple investor. I like companies, generally speaking, with an income stream as when the price of the product rises so does their income and profit! SHG appears to be a good example of that (as does AAZ for example). I do sometimes go for more speculative companies as well though, although they tend not to be as large amounts.

Actually Visitor, I don't believe that they are including the silver stream in the net debt position. The numbers make more sense without that and the news goes on to state that "The US$5.25 m silver stream to close in Q4 when the final registration of the security has been effected". On that basis I don't think that they can include it at this stage. The power plant funding is more difficult to assess as it could be included (and could have for a while). However, I believe that companies tend to include these facilities only when they have been drawn down. And running over the numbers again, they make more sense without including this figure. I am happy to be corrected!

The game is definitely on if there is more than one party interested. I suspect that Labro will continue collecting as they know that this is going to go for a significant premium to the current price. I am leaning towards the view that this is tactical for them now. It is not often that you can get a situation like this as realising their gains would destroy the share price. They need it to be taken over if their end game is not a full takeover. If this was a full listing the shares would be up over 30% on this news as the market would understand that there is likely to be a bid higher than that in the not too distant future. Anyone bidding for this is likely to have the money to develop the asset. Given a good bull market in gold I think that CGH could achieve this as well - there have been recent funding deals in the market recently for over $100m involving companies with lower market capitalisations than CGH (EUA for example).

KNIGELK, I think that what has happened is that the whole process over the last few days has basically shocked the diamond community into activity. This is not a big space and events at Lace would definitely have caused major ripples and would be bound to kick start any bidding activity. Given that there are very few new diamond deposits being found and a lot of production tailing off, it is inevitable that there would be interest in one of the few ways in which companies can improve revenue. The market has consistently undervalued DCP (and many other commodity related companies) in what has been the worst commodity downturn that anyone can remember. The asset here is worth multiples of the current price but investors just do not understand this on the whole. AIM is populated by momentum and sentiment traders who do not look for fundamental value.

OK. Generally speaking, it is difficult to envisage a rising inflation rate without rising commodity prices. Gold does particularly well in this scenario. However, you have to consider that higher inflation rates tend to result in higher costs to the oil producers/miners. Miners in particularly are susceptible to higher oil prices as it is one of their key costs. Labour costs tend to be the other main consideration and in some miners this can be crippling. For example, in a commodity (particularly gold) boom I would not favour Australian narrow vein miners as the A$ appreciates and specialist skill prices go through the roof. All in all, high inflation (but not stagflation) brought about by surplus money supply is good for commodity related shares as the higher revenues more than offset the higher input costs. There will obviously be cases where this is more true than others but I think as a rule it is fair. I suppose that I should point out that we are currently in the grip of deflation although you could make a case for this being a stimulus for money printing which will result in unconstrained inflation in the future.

nholland12, The answer to that is rather complex. It depends on the amount of inflation and the business that the company is in. If you could suggest context then I am willing to answer!

After the catastrophic RNSs of late, these couldn't be more different. The market hasn't really taken this on board yet but will once the short term future is secured. The strategic review suggests a lot of interest with the potential for a bidding war. Bearing in mind that this was 3 times higher only a couple of months ago and that the short term financing only comes to £0.5m, I see no reason why interest should not result in bids at several times the current market capitalisation. This company was priced to fail and does not in any way price in a secure asset value.

To be fair einvestein he said that it wasn't PROVEN to be economic as this can only be the case when steady state mining can be achieved.

I half expected the price to be marked down because the production has gone down this quarter but this was clearly flagged. They have actually done much better than I anticipated given the guidance and now only need 14-19k oz in Q4 to meet guidance. I expect them to make the upper end of that range if not better it. But look at the rest of the news! Net debt is down $6m. They have actually paid off $5m of debt. They haven't drawn down the power station loan as they have paid the first $6m from cash. Cash costs are $387/oz! AISC reduced for the year Cash generated - $11m All this after $14m capital expenditure Silver stream still to come The company is a cash generating machine at the moment and the exploration results suggest that this will not only last long into the future but at an increased rate as well. Best gold producer on the market currently.

I suspect that it isn't Labro. But you have to say that Labro are in a very strong position. All depends on their ultimate motives. This move could just be to flush out a bid in which case it has worked. Now they have made it clear that they are open to offers we will see who gets interested. Got to remember that whatever the market thinks of the CEO and the company, this is a very desirable asset. I expect more interest to be expressed. If that is the case then the price will be much closer to real value. The current share price is very strongly underpinned here.

About to get exciting here I believe. As I thought, this is going to move more quickly than anticipated by many as I believe a deal will be done before spring. The response suggests that the board is up for it but they want a higher price. I would like to see more than one bidder so that the value can be released.

Oh, I agree that there is ample tinder to ignite but your original message said "Hope there will be a spark in the market (Black Swan) some time soon!" which suggests that you want one. Let's not kid ourselves. We see value in gold miners because we believe that gold is the place to be at a time when it looks like the brown stuff is going to hit the fan. None of us should hope that this happens as it causes real hardship and if I end up losing money on this and my other gold investments because things have turned out fine then that will be great. I don't expect this to be the case (in fact I think that the next few years are going to be catastrophic, particularly for Europe) but it would be better for the world if it was.

Well, they are patient and happy to pick up the stock on the quiet currently as they know that they will outlast the average AIM investor. The selling at 15:30 proves that AIM investors have the attention span of goldfish. They are making this far too easy for Labro. However, if, as I suspect, Labro may wish to accelerate the game then they are going to have to start committing more soon and this should put pressure on the share price. Surely then even the average AIM investor would realise that sitting tight is the best option. Wouldn't they?

Your tone has changed since last week Sisyphus. You sounded bullish last week and bearish this week. Bad weekend?

And yet you suspect that people still won't get the message. Only 100k shares this time.

Because they are businessmen and having control is a key part of running a business. You don't want to have to pander to large numbers of minority shareholders all the time and they can put their own team in from top to bottom. A takeover is inevitable in my opinion.

New gold zone discovery. I like the 30m+ of 5.45g/t drill result. Could be promising.

Let me get this right. You want a black swan event? Bearing in mind this could be at the cost of people's lives and livelihoods, I'm not sure that is the sort of thing that any of us actually want.

According to the latest set of finals, net assets were $78m approx. or about £64m. So approx. 3 times current share price.