Member Info for Daisan

jollyspeculator, It is not surprising that a drop in the gold price has caused some weakness but I don't think that the sp got ahead of itself in terms of fundamental valuation. In Q2 the business generated cash at a rate of $52m/annum. Which isn't bad for a company with a market cap. of $76m and plenty of other news drivers. From the point of view of digesting the placing and the subsequent gains then, fair enough. The market mechanics tend to drive these things and people will take money out on the basis of the rise.

Tremendous and unexpected performance here. Shows real strength to actually rise when the gold price is strained.

Strange trade after market well above current price. Same as Shanta. In both cases they seem to be ordinary trades. Odd.

Interesting after market trade at 11.25p - considerably above current price. Suggests it's an ordinary trade as well.

Seems to have found support around $1290/oz at the moment. Will be interesting to see whether this holds. $1300 is quite a key level so we may see some weakness if this is not recovered today/tomorrow. You would think that the mess that is the European banking system and the threat of a lunatic in the White House (whoever wins) would be enough to maintain interest in gold!

Possibly. But I suspect that those controlling this now are not going to be happy to just sit on their hands for years. At the very least this is going to put pressure on Dekel to get things moving. Otherwise he may find himself out of a job.

Anticipation of the quarterly report may give it some support. Given the annual guidance, it is likely that H2 will be somewhat lower than H1 but should still show substantial cash generation, net debt reduction as well as further capital investment. Combine this with good news on the satellite deposits of NL, the potential for developing Singida and positive drilling results, you have to say that, at the moment all indications are pretty rosy. Even the gold price weakening shines a positive light on the hedging programme!

Interesting that the rise has held so far today. I was expecting a bit of a drop as people took the opportunity offered by the higher price. It could be anticipation of the quarterly report, even though the expectation is for lower production figures.

And now 6.88p! Maybe people are waking up to the fact that this is a probable takeover situation.

I think things may well kick off sooner than expected, although 2016 may be too soon. Interesting that a buy has just gone through at 6.5p - above the ask, although I always find the prices odd on CGH.

Pilot plant was due to produce at about 800 oz per month I seem to recall so in itself will add 10% to production levels. But the Singida resource is capable of producing as much as NL is now so in the medium term we could be looking at 150k oz production, although there will be significant capex. involved and I would prefer they carried this out through cash flow. Given the current price of gold this should be well within reach. Very positive outlook for Shanta on multiple fronts and the main reason for past weakness, debt, is becoming less and less of a concern.

It is decent and does suggest that there is a lot more to come from Singida. However, I wouldn't describe it as 'fabulous'. You have to leave yourself somewhere to go with hyperbole otherwise you'll run out of things to say when there really is fabulous news. The absence of bonanza grades and the slight delay to the pilot are likely to mean that the initial reaction is muted. However, it should maintain its steady upwards momentum as the news is positive. Quarterly update next.

I think that it might come in a little weaker - I'm looking for 17-17.5k oz. As you say, this should be offset somewhat by the higher gold price over the quarter.

One of the most professional gold outfits on the UK market with a very decent resource in a stable area. However, you do pay a premium for that. I suspect that this will be acquired as it is world class. Question is when. Probably more money to be made in other gold companies but this has far less risk.

Should be here in a couple of weeks. Given the lower numbers earlier in the quarter and the downward guidance on full year production, what is the expectation here?

There is life in the old dog yet! Potentially the start of people realising that a takeover is extremely likely here even if it won't fully value the asset.

Deepsurvey1, If we use the last financial crisis as a model, the initial preferred asset class would be the Japanese Yen (although the US Dollar and Swiss Franc also performed well) followed by gold. The Japanese Yen actually strengthened against the dollar in the run up to the financial crisis and spiked higher when Lehman Brothers collapsed. If we do follow a similar pattern then gold is likely to initially drop by 20-30% before recovering sharply. Gold dropped substantially from July-October 2008 before rising consistently until the August 2011 peak. Things to avoid around a crash. Base commodities, banks, Australian dollar. But in the aftermath of the crash, both commodities and the Australian dollar performed well (they quite often go in tandem for obvious reasons).

DappaT, You say that the market works. I agree, as long as that market is not AIM! It is a pit of sentiment, emotion, corruption and lack of clarity. Unfortunately it is infecting DCP which I still believe is an honest company trying to put a mine in production with all the difficulties associated with that.

It looks like the penny may be beginning to drop on the TSX. A bit of buying today and a tick up.

Beginning to look like the usual PI panic attack at the moment.