Dacian Gold (DCN)

SilverSanchez

SilverSanchez

Active Member
These guys are developing a high grade mine

They may seem expensive, but they have lots going for them (management seems pretty good for one)
I bought recently - which killed me because I had my eye on it from 40c and missed it, it was Capilano Honey all over again for me.

Do you own research but might be worth a look in if your into developers.

http://daciangold.com.au/
 
DCN wkly chart (below).
DCN was unloved for most of 2017, but now getting more attention as it draws closer to first production.

DCN_weekly_21jan2018.png
 
This company is doing a cap raising (placement and SPP) at 2.70

They can raise a lot of potentially highly productive money for little dilution at this price and there will still only be around 220m shares out there with not many options.

I'm buying a few on market if the share price retreats towards the level of the cap raising. The raising is to accelerate exploration that has been hitting more paydirt within their production field of Mt Morgans.
Dacian's brownfield discovery of Cameron Well looks very enticing. Cameron Well will give them a third mining 'spoke' for their processing hub in the Mt Morgan project.
They've got the mill up and running, producing enough cashflow to fund their debt servicing and ramp-up costs to reach circa 200,000 oz p.a production for fy2019.

Management has prior success at this sort of thing - brought Avoca Resources from $7m ipo to $1B value when it was folded into Alacer Gold Corp. Dacian's Mt Morgan project has minimum 10 years production ahead at 200,000oz p.a but it makes a convincing picture of more gold to be found and the option of increasing production to a higher rate than the original plan. Mt Morgan is in a region with more 2+ million oz endowment mines than anywhere else in Australia.
 
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A mate asked why DCN has such large volumes of shared traded daily with very little range in prices. Anyone care to explain?
 
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