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Core Gold DMMIF

Core Gold Inc is a gold mining company based in Canada with all operations in Southern Ecuador. The company primarily explores for gold and silver. Some of its projects includes Zaruma Mine & Portovelo Mill, Dynasty Goldfield and Copper Duke Project.


OTCQX:DMMIF - Post by User

Post by RONNIE111on Aug 23, 2019 10:40am
172 Views
Post# 30059045

share price

share priceDuring the bankruptcy scare for Dynasty in late 2015,early 2016 , with the price of gold threatening to break below $1000, and Ecuador still not too friendly to mining, the share price of Dynasty briefly dipped as low as ten cents.  But then with the price of gold recoverying into the twelve and thirteen hundreds, the change of management (and name change to Core) , the restart of the mill and the start of mining at DGF, and the issueing of a great number of shares at 30 cents to raise money to pay back old debts; the share price settled around 30 cents and has stayed close to that ever since.  The marketcap however went up a bunch, from a low of $4 million to mostly something in the $40 millions.  The financial situation was still dire, with very low or nonexistent profitability from the mining.  

With the attempt by the BOD4 to merge with a company with no assets, and ,what appeared to many, steal the value from the small shareholders, everything was upset.  And the market cap is now less than $30 million.  The financial situation is still dire (it appears Core needs a cash infusion of $20 million to turn things around for good) , but the assets that gave the earlier share price of 30 cents are still all there.  And in fact the price of gold has risen from around $1200 ,when the merger attempt was announced, to around $1500 (which appears solid with upside potential) now.  And that increase in gold price is a very big deal for the value of gold in the ground.  DGF has 2,140,000 oz of proven gold (and probably much more to be found as it has barely been drilled) , high grade, close to the surface, in a friendly mining country. I think it might be pessimistic to value that gold at $100 /oz in the ground, at $1500 gold; but at that it would be worth $214 million.  Throw in the other know asset: the Portovelo mill; and the assets of various potentials: Zaruma underground, Linderous, Copper Duke, perhaps Jerusaluem, and some others; and a market cap of $84 million or 50 cents a share seems very low, even with Core's dire financials.  

But the problem at present is that all confidence in the BOD has evaporated.  Nobody is buying (or lately selling either) at the present very ,very low share price, as long as the future actions of the BOD are unknown.  If they restore confidence that there will be no more theft attempts (or resign which would be nice but perhaps too much to hope for) , than the share price would quickly revert to what it would be based soley on the asset value.  And then if the financial situation was fixed, that would give the upside.  

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