OTCQX:DMMIF - Post by User
Comment by
mtsuiton Mar 23, 2010 10:25am
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Post# 16913013
RE: RE: Long time no post......
RE: RE: Long time no post......<< At the SF gold conference last November, the CFO was quite clear thatthey had no intention of raising more cash until the stock price was$6-7, and they said their cash burn was $1.5 million a month. >>
At PDAC DMM told me they did not need to raise cash for the current operation (as everybody agrees), but would raise cash if it provided an opportunity to grow faster.
If miners admit to thinking about raising cash then you know it's coming so I was not surprised by the offering but was surprised by the lousy price.
How could DMM grow faster? 1) accelerate development of Dynasty and truck ore to Zaruma. 2) acquire locally owned operating assets near Zaruma.
They said people have expressed interested in toll milling at Zaruma, but DMM is reluctant to tie up its capacity for a limited return. if DMM owned or had equity in the ore then it would be more attractive. My guess and my hope is that's how the offering proceeds will be spent.