Doray minerals limited (drm)

[soulman]

No thread on this stock so I guess I will start it. RMS just recently grabbed a few parcels for a 6.63% stake. RMS have $90 mil cash and no debt.

74.88 shares on issue. 52 weeks high $1.73, low 0.615.

Currently at $1.52, an 11.4% jump today on surging volume. Almost no sell side left and a buying frenzy near the close today.

I see RMS taking over DRM in the near future. Cash and scrip offer likely. Or maybe scrip for scrip. Latest quarterly report out on 21st Oct. EV around $98 mil based on $16 mil cash and no debt. They do have just over 10 mil 20 cents options that will make many of their execs very wealthy on conversion.

I hold.

[Huang Chung]

My broker went to their presentation at the Brisbane Mining Convention today, and came away quite impressed.

What specifically attracts you to DRM Soulman?

[Huang Chung]

My broker went to their presentation at the Brisbane Mining Convention today, and came away quite impressed.

What do you think of their main project Soulman?

[soulman]

HC, definitely the imminent bid for the coy. I don't see RMS intention as a strategic stake. I see RMS wanting the whole DRM since RMS is seeking more land area and projects near Mount Magnet and Wattle Dam and DRM can deliver that.

When RMS bought in, I jumped in at $1.34 and have added a few since then.

[soulman]

Sold 2/3 today on open for $1.58.

They have a JORC of just over 100,000 ounces at 24 g/t (very high grade). Judging by Wattle Dam, RMS can get free cash flow of $50 mil in one year based on previous WD production profile. The downside is that DRM only own 80% of the high grade zone. Cost per ounce based on that grade will be pretty close to $300 per ounce.

Nevertheless, RMS released their QTR and it wasn't pretty to read.

Right now with DRM, the frenzy has fizzed and please buy with caution.

[drillfix]

Excellent yet again soulman. You got a good eye on ya there pal and well done, and great strategy also.

We could even add DRM to the uptrending stocklist if not already added, although a slight tad of dark cloud cover (technically speaking).

[soulman]

Cheers Drill. I post on the RMS thread when I saw RMS taking a stake in DRM buying on market.

Between RMS and DRM, DRM is a better bet. RMS is bound to be hammered when they do takeover DRM because of the risk premium price offered.

I would think anything around $2 would get a deal going.

[Huang Chung]

I had a very quick look at DRM after my brokers favourable opinion, but was struck by the substantial market cap relative to their resource base.

I'm struggling to find value here.

Ps....it was only a quick look, so I might have misjudged the potential.

[soulman]

HC, the potential is in RMS intention with DRM.

RMS in TH today re: a WTF.....cap raising. They have around $90 mil cash and no debt.

A bid for DRM soon......Maybe and probably.

[Huang Chung]

Soulman

You're probably right, but why would you telegraph your punches by taking a 5% stake?

[JBmurc]

Glad to sold out of my RMS position at cost hours before TH

[soulman]

Yeah and I bought in at $1.29 just before the TH. WTF?? A cap. raising usually not pretty unless it comes with free oppies or a cornerstone stake by a major gold producers. A coy with $90 mil net cash don't need a capital raising unless they need it to acquire DRM. But then DRM should also be in TH. Unless something more sinister?

No wonder DRM got a ticket from ASX today.

[Joshuatree]

Currently 86c. Arguably the Quality Goldies the best value in the mkt atm,.

[JeremyALD]

Any thoughts on this stock? Down at 61 cents at the moment with a new gold mine and has historically hit $1 regularly.

[Joshuatree]

DRM finished just off its hi of 29c today at 28.5c today. They are doing a qrtly results conference call (a first?) tomorrow and the mkt has been buying shares in anticipation of a great qtr. Almost took some more off the table today, heres hoping holding them is the right call. My trading DRM are up re 74% atp.

[Baa_Baa]

You like your minerals and mining eh Josh, lucky Jacinda isn't governing your ASX investments. Bring it over to the NZ government forum and explain to us how you reconcile your hypocrisy.

[Joshuatree]

Oh no BaaBaa is turning into a stalker and offensive troll. Sad to see:ohmy:

[Joshuatree]

DRM finished just off its hi of 29c today at 28.5c today. They are doing a qrtly results conference call (a first?) tomorrow and the mkt has been buying shares in anticipation of a great qtr. Almost took some more off the table today, heres hoping holding them is the right call. My trading DRM are up re 74% atp.

Download Document 969.96KB (https://hotcopper.com.au/documentembed?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC6w67w RGZpOV0ke92GA%3D%3D)

Record Quarterly gold production of 18,551oz at AISC of $986/oz and C1 cash cost of $717/oz

Record Quarterly copper production from underground of 966t

New lode discovered south of the Deflector Mineral Resource area




Great qrtly as expected, have taken profits and sold my trading position. Still holding my top shelf goldies EVN and NST.

[Joshuatree]

S/p re 34.5c now. Hope to stay on until about 40c
Corporate Presentation May 2018 (https://hotcopper.com.au/threads/4185313/)

[Joshuatree]

Getting better and better.
Annual Mineral Resources and Ore Reserves Statement (https://hotcopper.com.au/threads/4297938/)

[Joshuatree]

A very satisfying hold . s/p hit 38.5c:)

Doray Announce Significantly Improved Life of Mine Plan (https://hotcopper.com.au/threads/4318146/)

[Joshuatree]

All good, maybe a bit more cash would be expected, paid off another $7 mill. 100,000 oz a year coming? Most goldies down today and s/p got ahead of itself and buy on rumour sell on fact. Holding.
Quarterly Activities Report (https://hotcopper.com.au/threads/4325058/)

DYOR

[Joshuatree]

S/P has gold momentum,hit 41.5c .Have sold 40%into this.Consolidation in the gold sector ?Amalgamation with SLR starting to look like L Junk has timed it well atpit.

[Joshuatree]

46cents. Jeez wall of worry gone sth and its chocks away on pretty well everything.Im very suss about this euphoria thing.

If China and USA get a trade deal and we have last orgasmic high then Gold really takes off in the Flight to safety?

[Joshuatree]

Closed at 47c above the merged entity valn of approx 46c.All good. Producers rule.