Only speculating but7 Apr 2013 17:13
with the availability/hoped for , of funding ( which seems to be the only one thing DP has been good at), I assume it will go towards reducing the $/cost per ounce , pushing costs towards $1000 level.
It is shocking to see such a fall for this junior producer and explorer , which has even found a year's worth of production recently( with no effect on the share price due to $/cost per ounce) , a mine that has loads of resources and by far now the most undervalued junior mine in terms of resources proven and probable .
The level that has been reached despite the high costs and poor cash flow, has to be the lowest it should reach.
Some speculation about takeover is inevitable . A fully funded mine taking costs at or below $1000 , producing around 80k could be roughly speaking providing $40m cash flow , roughly . Staggering now that the market cap is not attracting a takeover and maybe that is what some PIs are beginning to wake up to as a few decent sized punts were made on Friday not just on the last few minutes but during the day too, £7500 trade for a small investor seems confident.
I see at £14.5m two scenarios and almost a win win scenario .
The first VGM gets taken over , say 40/50p on the cheap , but doubt it as some senior shareholders are well over £1 including DP who is average I believe above 40/50p.
Or the second is that a gold for funds options can be brokered without dilution and the capital constraints lifted fast with the development of the recent 2 years finally starting to deliver some good production .
If for once they get it right ( and so far always wrong ) the law of averages is surely favouring the chance of getting right for once. ( you'd hope) , if they get it right then this could multi bag enormously .
Many Ifs , but the funding would be a massive catalyst .