DCN 0.00% 28.5¢ dacian gold limited

Gold + 2'700 AU $, page-2

  1. 759 Posts.
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    I am sure a lot of this hedging was required by the project facility lenders. In saying that, when this hedging was done DCN's project plan was to deliver 200koz at an AISC of around $1200 from memory. So at the hedging price of $1700-$1800, they would of still made very good margins plus the hedged amount then was a much lower percentage of forecast production.

    So although the hedging decision looks appalling now, the main issue is the failure of the company to deliver production anywhere near that calculated at the project feasibility and decision stages. If they had of successfully delivered this the hedging would be a non issue, a capital raising would have never been required and the share price would be 10x what it is now.
 
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Currently unlisted public company.

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