Core Gold DMMIF

RE:RE:Can this stock go to $5 - $10 a share?

[Inv3stor]

I really think the 300K oz production number is not realistic,

Washer himself said in 2009 and I still have the audio from Financial sense that they built the plant to handle an "ambitious" target of over 100K a year.

So he knew that 100+ is ambitious.

DMM has been struggling for 6 years wih the reality that it can not reach 40K a year, the reason is they do not have cash and the market dried.

I give it to Washer for keeping the float minimum and preserving the valuations, but that means progress is going to be very slow.

If everything goes right (and that includes things that people here never talk about, like shaft collapses, big flooding, fires, etc..) and they mine multiple veins, they may reach 60K a year.

That would bring the total "all in " cost to around 950$ (because there is a LOT Of development required to maintain that rate) and you get around 15 Mil Profit a year, which is around $7.5Mil per year after tax.

And yes, that will keep the stock in the 1-3$ range.

But the bets are on the following upside.
1 - Gold north of 1500$ this will double their profits and pumps it up to$3-6 range.
2 - Exploration potential increasing the size of the reserve north of 2Mil Ounces  which will give it the next pump up.

When POG is north (if it gets there) of 1600$ and seems to be heading to 2000$ again (if you believe this will happen and when), then the market will start to reward the company for the other two reserves albeit slightly at first. and you can see north of 10$.

So in short, to see 10$ here, you need 

1 - No Disasters (this is a biggie really) 
2 - Full Success in Operations
3 - High Grades for for more than 3 or  4 quarters
4 - Gold north of 1500$ 
5 - Some hype.