GREY:DRGDF - Post by User
Post by
auingoton Oct 28, 2008 8:44pm
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Post# 15552365
Positive BFS
Positive BFSThere's so much doom and gloom. If DGC was planning on manufacturing cars or widgets I'd be worried. Gold is a different story.
In due course, DGC will be valued on it's BFS. Using the BFS parameters a definitive NAV can be calculated. If (big if these days) you can fund a mining project this is the perfect time to build it. Thanks to deflation building a mine just got a lot cheaper.
Here's the good news. The cost of building and operating a mine have fallen considerably since the Summer (IMO costs will continue to fall into next year). This will help to boost NAV calculations. You will be seeing a lot more news releases like the following going forward:
https://www.newswire.ca/en/releases/archive/October2008/28/c2362.html
Capital and operating costs are falling quickly and revenues are rising thanks to near record high gold prices
(in C$). The market has yet to price in margin expansion of Canadian gold producers/developers. This will
change in time.
GLTA
Auingot