GREY:DRGDF - Post by User
Post by
truthbetoldon Feb 22, 2014 11:15am
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Post# 22238109
Sweet Spot
Sweet SpotOverlooked in the last couple of weeks is Paul Martin as CEO. He is a finance man and fully capable of taking DGC to the next level. GP was a promoter and did a great job building the mine.
A big catalyst for DGC will be a stable to rising gold price. With a C$ at .90, that is 10 percent increase in the price of gold for DGC. Their costs are 85 percent in C$ so a $1300 gold price is equivalent to a $1430 gold price in C$. They seek the gold in US$ and pay costs in C$. As well they have the new electricity agreement which saves 20 million a year. The financing takes out the headwind of possibly running out of cash.
With a stable to rising gold price and most of the start-up hiccups out of the way, things look promising. GLTA