Australian (ASX) Stock Market Forum

DEG - De Grey Mining

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Sean K said:
Crikey, that's some CR and dilution - 30%. I thought it might have been more like a major investing in it and debt. I guess they still need a lot of debt going forward. Probably another $800m to production.


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I am intrigued on the determination of 1:7.95 ratio.
Thankfully not 1:7.995:)
Would be listening at 930 am Awst presentation to learn more.
 
I just listened to the company briefing.
Very robust funding, execution plan , supporting tech and fin , low pay back.
It's a billion dollar investment with highly derisking.
DNH but excited to look into opportunity to dive following CR completion at a favourable price.
 
Garpal Gumnut said:
So, @Sean K @brerwallabi @Miner .

Would you consider DEG as a good candidate for a one Gold stock, big bet? Are there any outstanding pluses or red flags to DEG in this scenario?

gg
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Not one big bet. Too much risk into production. But, it might be at the bottom of the orphan stage of the Lassonde Curve at this point. Once they get the rest of the finance settled it's far less risk and is going to the second peak of the graph. The upside risk is they discover another Hemi type deposit close to the main production area. Still really surprised one of the majors didn't grab this much earlier.
 
Sean K said:
Not one big bet. Too much risk into production. But, it might be at the bottom of the orphan stage of the Lassonde Curve at this point. Once they get the rest of the finance settled it's far less risk and is going to the second peak of the graph. The upside risk is they discover another Hemi type deposit close to the main production area. Still really surprised one of thers didn't grab this much earlier.
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Mate
What exactly you meant when referring to big miners?
Geological discoveries are not related to company size. It's 80% luck and 20% geologists capability to understand the rock.
Paddy Hannan's discovery of Coolgardie was 99% luck and 1% his skills.
Don't know what goes with Mark Creasy however.
DNH
 
Rabbithop said:
..I don't think it's good or benefit shareholders. Raising working capital or is it Raising more money for fat cats to waste.. What's your opinion?
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I believe DEG took an excellent step, using cheaper source of fund than loan.
It's a tier 1 project.
 
I don't hold De Grey but 'Market Matters' commented today after UBS's upgrade of the stock:

De Grey Mining Ltd (DEG) $1.11​

UBS upgraded its price target for DEG to $2.10, over 90% above yesterday’s close. We believe DEG’s Mallina gold project is a perfect asset in today’s high gold price environment. The large inventory is attractive, and its already large, long-life, and low-cost asset base is rapidly becoming more strategically appealing. You never know, Gold Road Resources (GOR), who own 17.3% of DEG, might decide they want some more, although a merger may be more likely as DEG has a larger market cap.
  • We like the risk/reward for DEG at around $1.10 after their $600mn capital raise at the same price.
DEG
MM is cautiously bullish towards DEG
 

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