As @BodoDell highlighted, RMS is projecting production of 280Koz of gold while DCN is projected to be 41% of that. Just on production basis, with RMS SP of $1.615, DCN SP should be 66c. Hence DCN is surely heading towards 66c without having to do anything other than to keep delivering the projected production volume.
There are two areas that DCN can do, to be on par with RMS in term of SP are:
1) Continue exploration to increase its low-cost reserve i.e. O/P mine. A good strike (being very very lucky though!) will easily boost the DCN SP.
2) Work out a way to extract the better quality ores from the U/G mine and blend them with the O/P mine to increase production volume to that of RMS. However this is a tough ask with just one mill running at full capacity.
** Above are what LJ had been undertaking!
What RMS hasn't been doing well is in the space of conveying the message that it has more ores in the ground and to project a longer LOM. Not sure why MZ hasn't been focusing on this issue.
Ultimately my choice in investing in DCN vs RMS is more of the turnaround story of DCN to mitigate the medium-term (from Aug 2020-Mar/Apr 2021) weakness in GP and also gaining on the SP itself. So far I have been right as shown in the comparison below:
Based on the SP on 13th Aug 2020, DCN SP has increased by 42.6% whereas RMS had decreased by 16.6% and SLR had decreased by 20.8%. And there is more gain to come for DCN.
After the medium-term weakness of GP is over, GP will become a massive tailwind and all goldies should do very well.
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As @BodoDell highlighted, RMS is projecting production of 280Koz...
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Last
51.5¢ |
Change
0.005(0.98%) |
Mkt cap ! $283.8M |
Open | High | Low | Value | Volume |
52.0¢ | 52.0¢ | 50.5¢ | $363.5K | 712.6K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 55914 | 51.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
52.0¢ | 52555 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 95215 | 0.510 |
6 | 199184 | 0.505 |
17 | 229739 | 0.500 |
9 | 169366 | 0.495 |
11 | 201336 | 0.490 |
Price($) | Vol. | No. |
---|---|---|
0.515 | 21617 | 12 |
0.520 | 83570 | 11 |
0.525 | 151071 | 5 |
0.530 | 280966 | 5 |
0.535 | 33652 | 2 |
Last trade - 11.39am 25/01/2021 (20 minute delay) ? |
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Last
52.5¢ |
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Change
0.005 ( 2.14 %) |
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Open | High | Low | Volume | ||
51.0¢ | 52.5¢ | 50.5¢ | 378683 | ||
Last updated 11.48am 25/01/2021 (live) ? |
DCN (ASX) Chart |