Doray Minerals (DRM)

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

  1. GOLDPIRATE

    GOLDPIRATE New Member

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    Decided to make an offer today of 0.71c & it was triggered = I'm in hehe :) = cheapest one of 2 bids today from what I see of the chart so I'm happy with that.

    Also noted a substantial holder reached a sizable selling spree. Perhaps this explains the lower share prices reached today? Like I said, I'm happy :)
     
  2. finicky

    finicky Well-Known Member Silver Stacker

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    It seems not a bad price to have a nibble of DRM. I've been thinking about adding a few but am wary of getting too concentrated in any gold stock. Something always seems to go wrong with gold miners. Can't see a signal in the chart today.

    I think Doray's just reacting to the critical move in the gold price, most golds are down similarly today. Plus for Doray there could be overhang effect from the 80c per share capital raising in Feb. Some who bought shares in that raising might have hoped to soon trade out at a profit. Now it's gone against them and they might be stemming their losses. Just guessing. To get it in some perspective Paradice Investments which announced it ceased to be a substantial holder today has only sold a net 627,645 shares as of 26th May. Back in April 10th when it made its last holding announcement it held over 8 million shares, so it would now still hold over 7 million shares by my rough reckoning, unless that was them offloading a few more today.

    Doray had quite a nice drilling result announcement today extending the Suzie zone.
    http://www.asx.com.au/asxpdf/20140528/pdf/42pw7yz0bnhf3v.pdf
     
  3. finicky

    finicky Well-Known Member Silver Stacker

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    I was going to do a mea culpa for my last post but then saw that, after all, it was made on May 28 and DRM began a 28% rally a week later (measured from intraday low of May 28)
    I resort to charts a lot when entering a stock, trouble is I afterwards take my eye off the ball and regard the stock as an investment.

    Chart is looking very poorly on a daily basis and therefore short to medium term. Maybe it's mostly one of the fund managers reducing its holding after the June Quarterly report - such as Paradice Investments again? The FY14 annual results as foreshadowed look fine, but when you look at the actual Quarter of June the grade and costs picture is deteriorating. The annual results would not look too great if you were annualizing the Qtr of June and if the gold hedge wasn't in place. Hope for exploration success if you're a holder - possibilities there with big budget for a juniour.
    Quarterly Results - June 2014

    Daily Chart shows 'three black crows' that are stepping outside the volatility band. Negative volume has increased. A lower low is being made to the one in beginning of June. Quite nasty.

    [​IMG]
     
  4. finicky

    finicky Well-Known Member Silver Stacker

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    Puts the emphasis on exploration, and only mentions grade and margin in connection with whole year result, does not mention deteriotation of those measures in the Q4 June performance./ Also does not specify that the high margin was helped by beneficial gold hedges. The exploration might stir things up though. The well known slump in business for the mining service companies has meant that drilling charge rates have reduced and somewhere earlier the M.D said it is costing Doray half what it did to drill a hole. So I guess good time to be throwing a lot of cash at exploration if you have the prospects.

    Chart isn't looking up yet.

    Disclosure: I haven't sold any shares
    Sentiment: It's pretty solid for a goldie but lately is becoming more of a punt on exploration success, a situation I'm not madly happy about.

    Diggers And Dealers 2014 - Doray Minerals
     
  5. finicky

    finicky Well-Known Member Silver Stacker

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    Sold at ~ 3.5k loss
    Chickened out. Getting too high cost and grade is lower as goes underground. Turned more into a speculative explorer and I've been nothing but done by those.
    Feeling trapped as feeling gold will go lower
     
  6. scott_reeve

    scott_reeve Active Member

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    My take on the DRM Chart (weekly) below.

    DRM now fallen 11 of last 12 weeks, breaking some key support lines. Technically the only real potential support area on the chart is around 40 cents when DRM last hit the area in June 2013. Hard to see on my small chart, but the last two weeks have shown some "tails" to the weekly candles indicating current buying support below 50 cents.

    [​IMG]

    ~ Scott
     
  7. finicky

    finicky Well-Known Member Silver Stacker

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  8. finicky

    finicky Well-Known Member Silver Stacker

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    Idea: from my prior post
    Doray is a small 'intimate' company - I'm going to take a wild guess that it leaks like an oldie's prostate. As we know the ASX and ASIC are vigilant about stamping out illicit trading of the privileged, especially in small companies, but sometimes insider activity eludes their raptor gaze. After excitement of yesterday subsides, be on watch for blip of positive volume when price has been depressed

    [imgz=http://forums.silverstackers.com/uploads/1893_drm_1_mth.gif][​IMG][/imgz]
     
  9. bellinvest

    bellinvest New Member

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    Doray Minerals have hit another goal with the Board approving development of their Deflector Project (previously Mutiny project). The project feasibility had a slightly higher AISC when compared to the previous Mutiny feasibility analysis, however, still some good strong fundamentals as follows;

    - Project review confirms a high-grade/low cost project with by-product credits
    - 6 year initial mine life with substantial exploration upside
    - LOM average C1 cost of A$654/oz and AISC of A$787/oz after Cu credits
    - Pre-production capex of $88.2M, including capitalised mining costs

    Good recent drilling results from Andy Well;

    - Maiden underground diamond drilling campaign completed May 2015
    - Numerous high-grade results incl. (under existing quartz vein i.e. drilling from underground into depth extensions)
    0.9m @ 155.2g/t Au
    0.6m @ 52.2g/t Au
    0.7m @ 55.9g/t Au
    0.5m @ 130.7g/t Au
    2.1m @ 21.2g/t Au
    0.6m @ 25.7g/t Au
    - Resource upgrade expected mid 2015
    - Wilber Lode continues north of dolerite dyke further drilling planned
    - Remains open at depth

    This stock is trading higher on a net assets v market cap when compared to most other mid-gold stocks at present, however, i quite like their projects and the depth extension to 600m throughout their Andy Well project look quite promising for a strong presence when the market turns to the positive. There are also a pile of options due in September i believe (Mutiny holders 6v1 conversion it think) so we may see a sell down around that point as they cash-in.

    Disclosure: Holding a small position

    DYOR
     
  10. finicky

    finicky Well-Known Member Silver Stacker

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    Is confirming the break above 60c resistance. High weekly volume.
     
  11. finicky

    finicky Well-Known Member Silver Stacker

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    Back in @ 0.955 for a small position so far.

    Keep on begging for a pullback in the gold stocks, but they just keep on going up. Unbearable not having something in it

    My only exposure to gold in equities had boiled down to a gold detector manufacturer and an engineering company that designs and builds gold plants.
     
  12. Wy So Lo

    Wy So Lo New Member

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    Whatever you pay now, will be looked back on, in the months to come, as a steal IMO.
     
  13. Caput Lupinum

    Caput Lupinum Active Member Silver Stacker

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    CDA?
     
  14. whinfell

    whinfell Well-Known Member Silver Stacker

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    Codan (ASX:CDA) ?
     
  15. Caput Lupinum

    Caput Lupinum Active Member Silver Stacker

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    I'd be concerned about an increase in Chinese knockoffs as the gold price increased
     
  16. finicky

    finicky Well-Known Member Silver Stacker

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    Yep, CDA
    They reckon they've got a handle on the Chinese counterfeiting, but who know, have doubts also.
    Radio division going well.
    SP has doubled over 2016 cal year. My sentiment is hold not buy.
     
  17. bellinvest

    bellinvest New Member

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    DRM have now commissioned their 2nd mine and are beginning their ramp up!

    They moved through $1/share nicely with the recent activity. Hunter Hall has increased their holding to ~16% which is a healthy holding

    I'm quite interested with their near-mine exploration activities which has shown some very good early results. They now have a yearly production ~150,000oz + by product credits (copper/silver concentrate). Their target is to be a 250,000oz/year low-cost miner.

    DRM are a solid gold play for this coming bull market, I really can't fault them in any way since I bought into their at around $0.50/share.

    DYOR
     
  18. heartastack

    heartastack Well-Known Member Silver Stacker

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    Cheers, on my watch list.
     
  19. finicky

    finicky Well-Known Member Silver Stacker

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    Added some more today @ 1.13
    This stock has been consistently breaking above the monthly bollinger band (a personal choice indicator i like to use now as a sign of possibly sustainable buying strength)
    It is threatening to break above 1.10 level which is the high of the prior bull run in 2013/14. So decided not to wait any longer for the possibilty of a pullback - fomo
    I see it as the cheapest quality gold stock available to me, given they've all got away me.
    Doray's core is exploration, so would prefer to have had a shot at NST, SAR, or EVN
     
  20. bellinvest

    bellinvest New Member

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    Hmmm how did you manage that buy? you mean $1.130?

    The company's low for the day has been $1.110 (open) and a high of $1.150 as at 12.05pm?

    I think SAR are now producing ~300,000oz/year with a market cap ~$1.2B. On that comparison and with DRM now producing ~150,000oz/year DRM without producing any more has the 'potential' to achieve 1/2 that MC... which would be a healthy 85% gain from current levels. All wishful thinking, but they are a solid gold business.

    I'm rather intrigued with their Gnaweeda (Turnberry) drilling close to their Andy Well project. That northern shoot in section looks very interesting... should be open pit able along the stretch with hits like 34m @ 1.6g/ton (from 25-56m). Would be a cheap material to feed the plant at Andy Well! Would need to spend $20-$30M to get all the equipment a facility management in place which is a small cost for years of additional supply.
     

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