Doray Minerals (DRM)

Discussion in 'Stocks & Derivatives' started by scott_reeve, Apr 1, 2013.

  1. scott_reeve

    scott_reeve Active Member

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    Doray chart for anyone watching this stock. Clear levels of resistance overhead.

    One to watch as the company is currently building a high grade mine in W.A. May get noticed when it starts producing.

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  2. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    In the interests of disclosure: do you current hold any position or financial interest in this security?
     
  3. scott_reeve

    scott_reeve Active Member

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    no i don't. If I did, I would say so.
     
  4. finicky

    finicky Well-Known Member Silver Stacker

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    Took a first bite today, 10,000 @ 0.64
    Might be an island reversal happening, island is below gaps in April and July. Contrarily, might return to test the breakout and fill the gap at 0.55
    Anyway, quite like the vibe of this one for a feel.

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  5. finicky

    finicky Well-Known Member Silver Stacker

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    Chart's not a buy yet but getting a bit of confidence in the quality of this one. It helps that a trusted poster on gold miners is backing it on HC - cdchi1. It's had a dream run for an explorer listed on the ASX since just Feb 2010: Gold Explorer of the Year award 2011, drills a high grade lode enough for BFS completion and debt funding by 2012, plant built then first gold poured Aug 2013! First few years head grade calculated @ 11.4g/t. Second lode discovered 2013. Bank funding luckily demanded first 45,000 ozs hedged @ $1620

    Worth a watch to get in at a low

    http://www.dorayminerals.com.au/assets/Doray_amec_preso_sept_2013.pdf

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  6. Guest

    Guest Guest

    Does it really matter?
     
  7. finicky

    finicky Well-Known Member Silver Stacker

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    (From cdchi1 over at HC who got it from Minesite.com)

    September 24, 2013

    Doray Minerals Drinks Richly At Andy Well

    By Wally Graham of Resources Roadhouse

    There's a lot of satisfaction in travelling your own road to achieve a goal, especially when others insist you should keep to a well-worn path.
    Gold from Andy Well

    Gold from Andy Well

    It didn't take Doray Minerals (ASX: DRM) long to realise it would bring its Andy Well gold project, located in the northern Murchison region of Western Australia, through to production.

    The revelation came soon after it discovered the high-grade Wilber Lode at the project, not long after the company listed on the ASX in February 2010.

    "We made the decision very early on that we wanted to mine the project, as opposed to drilling and working it up to a point where somebody may be interested in buying it," Doray Minerals managing director Allan Kelly told The Resources Roadhouse.

    "That decision dictated how we went about the business in terms of what we reported and what we said about the project. We were always conservative, because we wanted to ensure that whatever we said, we would be able to deliver. We knew, back then, that if we were to mine the project, we would be judged in the future on what we were saying back then."

    Doray quickly established a high-grade JORC-compliant resource at Wilber, which it just as quickly converted to a reserve.

    Following the granting of a mining lease the company conducted its bankable feasibility study, and secured project financing of A$55 million.

    Mining operations commenced at Andy Well in November 2012 and in August this year Doray poured its first gold bar weighing in at 144 ounces, or 4.6kg, and worth more than A$200,000.

    Being a producer means Doray is now generating cash flow to support ongoing development at Wilber Lode, which currently has a reserve of 730,000 tonnes at 10.6 grams per tonne gold for 250,000 ounces.

    The total combined resource for the Andy Well project stands at 1.2 million tonnes at 11.3grams per tonne gold for 444,000 contained ounces.

    That's not too bad when you consider the upside the project offers. This was demonstrated earlier this year by a maiden high-grade JORC-compliant gold resource for the Judy Lode, sitting adjacent to the current Wilber Lode mining operations.

    The Judy Lode resource measures 225,000 tonnes at 9.7 grams per tonne gold for 70,000 ounces in the indicated category, 168,000 tonnes at 6.7 grams per tonne gold for 36,000 ounces in the inferred category, for a total of 393,000 tonnes at 8.4 grams per tonne gold for 106,000 ounces of gold.

    This resource includes the 137,000 tonnes at 19.3 grams per tonne gold for 85,000 ounces in the Judy South zone, which makes up approximately 80 per cent of the total contained ounces.

    The BFS for the project was conducted solely on the Wilber Lode, determining a current mine life of 3.7 years.

    Doray is confident of more to come from Wilber with the current mine reserve based on drilling completed to 480 metres.

    Basically, the only reason the reserve stops there is because the company has yet to conduct any further drilling.

    "There's no point drilling any deeper from surface because it's too expensive", Kelly explained.
    "We know we're going to mine it so why not wait until we get down there and drill from underground."


    Doray's attention, for now, is on the Judy and Judy South prospects, the latter of which is emerging to be the main focus of the two.

    RC Drilling at Judy South has so far reached depths of 250 metres, which equates to about a quarter of the drilling already completed at Wilber, and has already produced the 85,000 ounce resource.

    The high grades being achieved at these deposits is providing Doray with confidence it can repeat its Wilber Lode efforts to quickly convert the resources to reserve and extend the Andy Well mine life.

    To that end the company is also casting a cursory eye over a number of parallel targets within the project area.

    It is currently drilling one of these targets called the Suzie Zone, where it is looking for indications of a possible third lode.

    Should this end up being the case, Kelly believes the company could potentially be looking at a mine life of around six to eight years.

    "To start up a project and already have three and half years at Wilber, plus potentially another year at Judy, plus the potential of a third lode that's a really good position to be in", he said.

    "A lot of people are probably envious of the position we are now in as a junior gold mining company, but finding a high-grade deposit is one thing, being able to have the vision and determination to bring it into being is another. Very early on we developed our strategy, recognising this was a deposit a junior company could mine.

    "That was seen by some people as being a bit premature people were saying we weren't advanced enough to move forward as quickly as we intended to. We had identified there was enough there for us to start a project straight away, so we made the decision and raised the funding we just got on with it."



    Twelve months ago, Doray was one of many ASX-listed junior gold explorers that had completed a BFS and were in discussions for project funding.

    Fast forward to today and Doray now stands apart as a gold producer bankrolling a self-funded exploration campaign with close to A$26 million in the bank.

    The company has drawn down the final instalment of the A$55 million project finance facility and has put in a place a hedging program of 45,000 ounces over the first 14 months of production at A$1,620 per ounce to cover the debt repayment period.

    Besides being a high-grade gold project, Andy Well possesses other attributes, such as high gravity recovery that requires a small mill, therefore a small footprint, which has enabled Doray to develop it in a very short time.

    The company will be in full production at least two years before its former contemporaries also get up and running and generate cash flow, especially in these times when raising capital for juniors has become a difficult market.

    "Because this was such a quick project to start up it has become a springboard for the company in that it enables us to transition from an explorer to a self-funded producer," Kelly said.

    Kelly said Doray would be able to use both what it earns and what it learns from the development of the Andy Well project to advance the company's project portfolio.

    "We want to bed Andy Well down to the stage where it's doing what we want it to do and then do something else," Kelly said.

    "There is a lot of value to be created by finding a project rather than buying it, but in the current market you can buy advanced exploration projects for the price of a greenfield opportunity, but instead not have any of the exploration risk.

    "There is opportunity for us. If we can demonstrate to the market, after our exploration and development success, that we can be a good operator, then there is potential for us to put our foot on another project."

    [imgz=http://forums.silverstackers.com/uploads/1893_drm_sept_28.gif][​IMG][/imgz]
     
  8. finicky

    finicky Well-Known Member Silver Stacker

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    Production going goood

    First full month including high grade u/g ore into the mill blend
    Gold recovery averaged 99.1%. Average head grade of 13.99 g/t
    8,614 ounces in one month


    Chart wallowing, needs to break out of its consolidating behaviour to warrant a buy
    Bit of a problem the W.A government wanting a 10% royalty from goldies, up from 2.5%



    ANDY WELL OPERATIONS UPDATE

    Underground development and mining progressing ahead of schedule

    Stoping of Wilber Lode commenced at end of September

    September gold production of 8,614 ounces exceeds forecast

    Exploration drilling programme ongoing at Andy Well
     
  9. finicky

    finicky Well-Known Member Silver Stacker

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  10. finicky

    finicky Well-Known Member Silver Stacker

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    Nother nibble today. Picked 5000 up @ 57.5 and second bid down at 57c

    Don't know what's going on with chart.

    Doray (DRM) has been conspicuously outperforming the gold stocks index (GDX) since June and the pattern of DRM has suggested innocuous consolidation of the rally from 35c in June. But yesterday and today there have been these probes below the seemingly significant 60c support level. Doray is one of the minority of goldies down today. The gap that occurred in July has almost been filled by yesterdays tail. Doray is illiquid, so if someone wants to get out he has to go down to meet sellers and get filled. Or could be an accumulator just bot selling to soften the price up and weaken the technical picture? (being optimistic)


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  11. finicky

    finicky Well-Known Member Silver Stacker

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    Picked up most of the second bid down at 57c today
    Still don't have a read on what's going on with chart.
    Continuing sideways into a narrowing volatility channel until a gold price change maybe?

    MONTHLY ALL DATA CHART
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  12. finicky

    finicky Well-Known Member Silver Stacker

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    Levi Spry Highlights Quality Australian Projects that Will Find Funding
    by The Gold Report
    Published : December 23rd, 2013

    Excerpt:

    TGR: Which Australian gold company stands out on grade?

    LS: Doray Minerals Ltd. (DRM:ASX) is our preferred gold exposure on the Australian Securities Exchange (ASX). It has the Andy Well gold project, a new gold mine in a historical province near Meekatharra in Western Australia. Production began in August. This is a small-scale underground mine and is mining ore grades of 15 grams per ton (15 g/t).

    "In the mid-cap space, we've seen companies chase scale in order to use economies of scale to reduce costs and build marginal projects. Now, we're seeing that unwinding. "
    We expect FY/14 production of 70,000-80,000 oz (70-80 Koz) at cash costs of A$500/oz and an all-in costs of A$730/oz. We've given it a Buy rating with a price target of $0.90/share.

    TGR: Will production increase beyond 70-80 Koz?

    LS: Doray's processing plant can probably handle increased production once it increases its resources and reserves. Now that the mine is built, and it is ramping up, the focus will move back to exploration. Doray has some pretty attractive targets to add mine life. Once that's done, there's a chance to increase its production profile as well.

    TGR: Will Doray have enough cash for the exploration necessary to increase its resources?

    LS: We think its funding should be fine.

    http://www.24hgold.com/english/news...direct=false&contributor=The+Gold+Report&mk=1

    Levi Spry
    GMP Securities Australia
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    Levi Spry is senior resources analyst at GMP Securities Australia, covering the gold, base and specialty metals sectors. Previously he worked for Deutsche Bank Australia and as a mining engineer with Newcrest Mining Ltd., Harmony Gold Mining Co., Western Metals Ltd., Barminco and SRK Consulting. He holds a Bachelor of Engineering (Mining; Honors) and a Bachelor of Applied Science (Geology) from the University of South Australia, a Graduate Diploma in Applied Finance and Investment from the Financial Services Institute of Australia and is currently completing a Masters in Mineral Economics at Curtin University. In 2012, Spry was named one of the Top 10 equities research analysts by the Sydney Morning Herald.
     
  13. finicky

    finicky Well-Known Member Silver Stacker

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    Chart is weakening.
    .60 didn't hold,
    .55 didn't hold,
    Closed on its daily low
    Low volume though, even for this illiquid stock
    I added 5,000 more @ .53 a few days back
    Almost everyone buying this in the last 3 years is losing despite company doing everything possible right

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  14. finicky

    finicky Well-Known Member Silver Stacker

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  15. finicky

    finicky Well-Known Member Silver Stacker

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    Low-cost production key for gold

    BARRY FITZGERALD THE AUSTRALIAN FEBRUARY 04, 2014
    http://www.theaustralian.com.au/bus...on-key-for-gold/story-fnciil7d-1226817000741#

    IT stands to reason that in the mining world, the best defence against commodity price weakness is to be the lowest-cost producer. That goes doubly for the gold sector after last year's price collapse.All that has panned out for those investors who responded to the massive shakedown in the gold price and equity values last year for gold producers not by fleeing altogether, but by seeking safe harbour in the lowest-cost producers.

    They have been doing very nicely, thank you very much. Australia's lowest-cost (listed) gold producer, Doray Minerals (DRM), is a case in point. Its cash costs are the lowest in the local industry if Newcrest's Cadia operation, which gets the benefit of a copper credit, is ignored.

    It's hard to believe now but Doray got as low as 35c a share last July when the shakedown for gold stocks was in full swing. Realistically, some of that weakness was due to the fact that the group's new Andy Well operation, north of Meekatharra in Western Australia, had yet to pour its first gold, meaning it had yet to prove itself.

    It has proved itself all right since, with Doray reporting production of 24,000 ounces for the December quarter, its first "full" quarter, at a cash operating cost of $448 an ounce and an "all-in sustaining cost" of $949 an ounce. With the help of some hedging, the gold was sold at an average price of $1472 an ounce.

    So despite all the bad press about the pressure on the industry from last year's gold price dump, the high-grade nature of Andy Well gave Doray the best defence of all - low cost production. That's why Doray, which started out the calendar year at 52c, has since motored along to 83c yesterday.

    The stock is now up 135 per cent on its level in July last year, and 58 per cent on its starting point for the new year.

    Most of the brokers don't think the stock is done just yet either, with valuations out there ranging from 90c through to $1. Getting to those higher levels isn't dependent on the gold price doing much from here either.

    It is all about the one big issue that has hung over the stock since Andy Well poured its first gold in August last year - its mine life. A rough rule of thumb is that each additional year of mine life is worth about 17c to Doray's share price. Currently, mine life is put at about 4.5 years. But confidence is growing that mine life could be at least six to eight years.

    That optimism is based on eventual extensions to existing ore shoots being found, the prospect of additions from known shoots not yet in the mine plan, and what could come from near-mine exploration and not-so-near mine exploration. On the latter point, Doray created a bit of a buzz last month with exploration results from the Suzie zone.

    Suzie was interesting enough when it returned high-grade hits last year.

    But the latest hole, 1km along the strike to the north, has also returned high-grade hits of decent widths, as well as a particularly high-grade hit of 59 grams of gold per tonne over half a metre.

    The plan now is to begin drilling the ground in between. Given the potential for Suzie to add to mine life over time, the unfolding drilling program could well be worth watching.

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  16. finicky

    finicky Well-Known Member Silver Stacker

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    21m extra shares from a $17m placement @ 80c per share. Intensify drilling campaign for 6 months. Cashflow from sold gold dedicated to paying down bank loan as fast as possible. Says drilling rates have halved! Can't remember seeing this for a while - share placement announced and share price increases to finish on its high for the week.

    Doray to advance Andy Well following $17m placement

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  17. finicky

    finicky Well-Known Member Silver Stacker

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  18. finicky

    finicky Well-Known Member Silver Stacker

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    BRRMedia

    Doray Minerals: A profitable gold miner
    THU, 17 APR 2014 5:00PM

    Position: Holds
    My sentiment: Buy on corrections

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  19. finicky

    finicky Well-Known Member Silver Stacker

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  20. finicky

    finicky Well-Known Member Silver Stacker

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    Always seems to happen in the long run to a share that does a capital raising. Price @ ask of 78c is now below the 80c cap raising price.

    [imgz=http://forums.silverstackers.com/uploads/1893_drm_may_20.gif][​IMG][/imgz]
     

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