Dynacor on TwitterI found this on Twitter. I spoke with the ir late yesterday and he told me they were never contacted by any of the reporters, and assures they are working hard to clear it up with the Sunat as quickly as possible.
https://twitter.com/DynacorGold
Investor call, April 20, 2010:
Investor: What are the prospects looking like for Dynacor Gold?
IR: We believe the company is not yet trading at par to its peers. We also know the company is steadily delivering its story to a wider audience of investors. This in our opinion is an opportune time to consider Dynacor in one's portfolio.
IR: We are currently updating a CMA of our peers operating in the same region as ourselves. It consists of a three part study. In the first part of the study, we are showing the market that Dynacor is trading at approximately 0.5 times its book value. The analysis includes every exploration company with a similar cash position and book value (11 companies) and working in South America. The average price to book value of all the comparable companies is 1.24 times excluding Golden Peaks and Mansfield...Dynacor's main advantage over its peers is its low share count of only 30 million shares outstanding while at the same time, Dynacor generates gold sales and a consistent flow of cash from its Acari custom mill operation. This cash may then be used to develop its exploration project at the potential world-class skarn deposit, Tumipampa. But remember I stated we are updating a three part study with the second part, available in the next few days, clearly augmenting the case that Dynacor is not even close to trading at par to its peers in terms of price to book value (0.5 times) and price to sales ratio. In the PSR study, we found only 8 other companies with a market cap below $500 million that had sales in 2009 operating in the Latin American region.
Investor: In your opinion then, what price should Dynacor Gold be trading at?
IR: I can't answer that question. However, I can ask you this question: if a company that closely resembles other companies in categories such as cash position, book value, exploration prospects in the same region, but is the lone cash flowing company in the study with the lowest share count of only 30 million shares outstanding and is currently trading at 3-5 times lower than its peers, what do you think it should be trading at?
Investor: Well over a $1.00 a share would seem about right.
IR: I do not disagree.
Investor: What is this business with the news release on the Peruvian government and Sunat?
IR: Please read notes #5 and #18 in our last year-end report. If you wish I could send the report to you. I will add, our president, VP, managers in Peru and myself were never contacted by the reporters....In any case, our answer is the same as it always has been, we always have and