Core Gold DMMIF

RE:Positive outlook

[edx]

hohigh wrote:
The thing that gets me most excited is the fact that DMM showed us what kind of cash costs they could acomplish once production is ramped up. Even at this low throughput they had very competitive cash costs this last quarter and hopefully this will just get better from now on.
In the past DMM had to fight against all the infrastructure problems of ecuador with basically no mining industry and know-how. Now they made enough mistakes themselves to learn how to operate in this environment. If you look at costs per tonne mined I see HUGE room for improvement in costs.
That's why I am very positive about the future and even added to my position although I kept hoping for years to break even. Now that I broke even I didn't sell but add ;).

The all in sustaining cash cost is one of the lowest in the world, full stop. There is not "competitive". DMM is in the top tier of low cost producers. https://postimg.org/image/5kgukpf7n/ I haven't compared the overall tax burden (corporate income tax, royalties, employee profit sharing tax) compared to other major miners, but on ASIC DMM will make money even when most of the majors miners cannot. DMM has zero debt. The major miners carry anywhere from "reasonable debtloads" to Barrick's "OMG less equity than debt" debt loads. And all miners have future capex expenses. DMM will need to dig two new declines. But Zaruma is looking like it will be one of the most profitable mines in the world.