OTCQX:DMMIF - Post by User
Post by
veteran98on Sep 17, 2010 8:15am
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Post# 17459752
Huge upside on DMM...
Huge upside on DMM... Re: Cormark report.....
I find it interesting because first of all there just isn't a lot of analyst coverage on DMM and second it's interesting some of the comments that are made. There is not a lot of new info in the report but it does continue with the theme that I keep reading over and over lately and that is how much better it is becoming in Ecuador and yet DMM is still trading at a level close to that of being a worse case scenario. Cormark seems to be using some pretty conservative assumptions when coming up with their numbers so scroll down and read their concluding comments and factor in a higher POG and the fact that they are being very conservative....... you can in all liklihood also assume their target of 8.25 is very conservative as well...
Dynasty continues to trade at a steep discount (0.35x NAV) due to the uncertainty surrounding Ecuador’s mining code and the taxation/windfall tax structure that will apply. Our target multiple of 0.75x NAV is a discount versus the 1.0x NAV multiple at which development stage/emerging producer gold companies typically trade. In our view, the significant upside in owning Dynasty is well worth the country risk. Dynasty
is poised to benefit more than any other gold equity when clarity is achieved with respect to its operating contract in Ecuador. We are maintaining our Speculative Buy rating.