Post by
RONNIE111 on Oct 22, 2018 10:31am
Six dollar share price
The $6 , or $11, share price was before my time with Dynasty (I first bought in at $3.60) , but I remember very well when the price fell to 10 cents and it looked all but certain the next stop was zero. At the last minute , Piggott and friends came to the rescue and I think the past two years have been an amazing turnaround story.
They got the mill operating again (at low production for sure);have done great work at DGF ; 'discovered' a potentially significant, high grade ,surface resourse at Linderos; come out of receivership by paying down alot of the old debt; have started drilling at Linderos and Copper Duke (soon); have arranged financing (soon to be finalized) to allow plant expansion etc. ; got the community onside again (it seems); and so on.
Will we see $6 shares again? Piggott has stated he sees this as a billion dollar co. If we end with 200 million shares (which seems likely) that gives $5. A billion is not unreasonable but I think it will take a higher gold price to reach. At $1750 gold and 100,000 oz production (which they call for in 2020) that gives $100 million per annum above operating expense. That should make it a billion dollar co. And there are upsides.
If they find half as much copper and gold at Copper Duke as SolGold has found at their deposit, it could be worth half a billion. I did a calculation of possible production from the mill. Core has said the mill could max at 2250 tpd, so if 1000 tpd comes from DGF at 4 g/t, 750 tpd at 8 g/t from Linderos (very possible), and 500 tpd from Zaruma underground mine at 12 g/t (In the Corporate Presentation Zaruma is still very much considered an asset), at 90% and no down time, that gives 169,500 oz au /annum. And the price of gold could go higher than $1750 when America becomes much less great again. So a $11 share price? : probably dreaming.
None of us like the extreme dilution. For a little while after I picked up a bunch of 20 cent shares and there were still only 40 million shares out, I held 1% of the shares in Dynasty. Now , I have added more shares but my % is insignificant. I wish there could have been another way for sure.
And the share price being stuck at 30 cents is frustrating but understandable. The financials still look terrible for Core: almost no income, debts still to be paid. But I sure hope I am right that the future looks bright, and possibly very bright.
Comment by
flashcash on Oct 26, 2018 12:45pm
Anyone tried phoning them just to see if the phone is still connected? Awfully silent !
Comment by
Goldred on Oct 26, 2018 2:02pm
As Vince Lomardi once said: "What the hell is going on out there." Next week?
Comment by
Tad on Oct 26, 2018 3:47pm
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