Post by
materialsgirl on Sep 04, 2014 2:47pm
CIBC
CIBC placed a target of 5 cents (sector Underperformer) on DM a few days ago.
In a commodity update today, in a summary of 4 companies, DM again was listed as 27 cents trading price and the 5 cent target price was repeated.
The 5 cent may be an error in terms of their judgement but the number was not a misprint.
CIBC meant 5 cents essentially because they see it as a no-hoper (my term) due to long timelines, lack of money and a need for substantial financing to keep the ball rolling.
I do not have a target price myself nor do I normally.
All I can see clearly is that fundamentals and circumstances will likely see it going down substantially during the final 4 months of 2014.
It is possible that Anto would offfer 15 or 20 cents a share but I doubt it because it would also have to pick up the debt.
Conceptually if Anto owned all of the property they could offer 50% of all the profits to a Chinese company in return for them paying 60% of capex. I do not know how they would handle sustaining capital but there are ways.
Still, it may be 3 or 4 years before they have permits and it is only then that the property might get interesting. By 2018 it would entirely depend on the BFS and on the then current commodity prices.
There will be a mine there some day but I do not know when.
mat
Comment by
PetJ80 on Sep 05, 2014 9:07am
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