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  1. #1
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    Thumbs up Doray minerals limited (drm)

    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.
    Last edited by soulman; 26-10-2011 at 07:14 PM.

  2. #2
    F.A.B. Huang Chung's Avatar
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    My broker went to their presentation at the Brisbane Mining Convention today, and came away quite impressed.

    What specifically attracts you to DRM Soulman?

  3. #3
    F.A.B. Huang Chung's Avatar
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    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?

  4. #4
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    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.
    Last edited by soulman; 28-10-2011 at 04:21 PM.

  5. #5
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    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.

  6. #6
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    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).
    --> Watch THRIVE 2011 a must watch Doco! --> Also watch ETHOS 2011 & share the Awareness~!

  7. #7
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    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.

  8. #8
    F.A.B. Huang Chung's Avatar
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    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.

  9. #9
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    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.

  10. #10
    F.A.B. Huang Chung's Avatar
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    Soulman

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

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