OTCQX:DMMIF - Post by User
Comment by
edxon Jul 22, 2015 6:53pm
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Post# 23950704
RE:Had a chat with IR a few days ago...
RE:Had a chat with IR a few days ago...I would guess the reason they are non-committal on that question is because Naomi either doesn't have that level of operational detail OR because the same decline that now access parts of the Matalanga and Sorche veins has to be used to haul out waste rock so they can keep advancing them.
I am very certain that production of gold ozs is going to be significantly up in Q3 if for no other reason than they now have some high-yield debt the need to pay off within a year. The good news here is that they can make that call on whether to slow decline advancement to increase production ozs as needed. I'm not anticipating any liquidity problems unless the price of gold completely collapses for an extended period of time.
What is important at this juncture for DMM is to establish production targets in their Q3 financials (I'd prefer Q2, but hey, let's be realistic :)) for Q4 and beat that guidance. And they need to do it every quarter moving forward to re-establish credibility with investors. They do that and by this time next year all the regulars on this board ought to be well into the green (hell, I'd be turning a very nice profit if the company traded at book value right now heh) with lots more to come.
Matalanga and Soroche have (if you count the inferred and there's no reason to doubt it given all experience to date) 300,000 ozs; 1/3rd of that being bonanza grade and 2/3rds being resource grade. There's enough in those two veins (which the declines have now reached) to sustain relatively high levels of production for years. They can't access all of the veins for now, so the decline advance must continue.
I would say this is the beginning of the end for longs. We're not there yet - don't expect that you're going to retire by Christmas, but November financials should be the start of what we've all been waiting for. For a company that is extrmely tight lipped and never issues guidance, having IR say production should "increase nicely" in Q3 is a bigger deal than it seems.