Dynacor has some news out Not sure if everyone has had the chance to read the news out but it has released a update on a few things. If you have not received the information email DALE the IR person. The forecasts LOOK good but yet to be proven. Also there is little talk of any type of "out of the box" plan for faster growth.
This expandsion drilling is going to cost money and "could" add benefits if successful. However I will come right back to my many previous comments. The amount which the company is spending on drilling is very marginal. Meaning unless you have truly remarkable core results then these like the release indicates will go to a NI-43101. Which brings to the next point. Money. The NI43101 will cost additional money to have done all of which could be used for either more drilling or additional upgrading" ongoing efficiencies."
In order to spend money drilling and make it worth while you really need to either spend much more or only target one area. They have announced that they will be looking at ALL three areas. With the capital for the drilling program this is not a wise move in my opinion. Target the one..the one that looks the best currently and spend all the money there. Thus giving you much information needed to move forward for the following years of ther drilling campaign.
In my view it is far to early to be looking at multiple zones and defining a resource to only have to spend more money on a update resource in the very earlier future.
This property is a ace in the hole for a decent resource...everyone knows that. But the return on capital is much better on the processing side. Lets not forget how this company continues to spend money drilling...From the processing division. I wonder what might happen if they where to expand the division that is truly the crown jewel of this company to date. Better returns on capital, a much larger cash flow..which would be great for the many holes needed on the property...oh and wait they could position themselves in the near future if needed to just process there own ore as well.
As it stands now they would NOT have sufficient capacity to process there own ore and others at the same time. I really really hope that the company does not indicate that it will only process its own ore in the future. It has a foot print in the country now and could grow it at a fast pace. The CURENT need is there and they are far away from going into production with there property... if at all.
The markets are tight and people have lost a lot of money. This company's management should take the leap and show others how it's done. They NEED TO BE VERY PRUDENT WITH THERE CASH. Only spend CASH on investments that will expand cash flow from operations giving them many opportunities in the coming years. I cant say this loud enough....return on equity and a strong balance sheet is a must.
Regards