Value Microcaps Junior Miners

[Luke_McCain]

C28, they are entitled to their opinions.

However...

CPTMatt wrote:

DNI used stock to purchase or try to purchase other non-core properties (copper/something).

http://www.newsfilecorp.com/release/19025/DNI-Metals-Signs-NonBinding-Letter-of-Intents-LOIs-to-Acquire-Two-Companies

The completion of these acquisitions will provide DNI with cash and working capital of approximately $2.2 million and copper and zinc properties in Canada.

The primary purpose of this merger was the $2.2 million. The properties were "freebies" that would have been divested in the future. Fact, not just my opinion.

http://www.newsfilecorp.com/release/21170/DNI-Metals-Inc.-Mutually-Agrees-to-Terminate-Merger-Discussions-with-CR-Capital-to-Pursue-Other-Options

As a result, zero shares were issued.

The lab, other non-graphite exploration type properties, etc. Seems like a lack of focus.

I'm surprised by this statement, since I thought that you had done your homework.

When Dan Weir took over DNI, the "other non-graphite exploration type properties" were already on the company books. He inherited them from the previous management team.

As far as the lab is concerned, it is part of his strategy to build a vertically-integrated graphite company, is it not?

The 37,000 sq. ft. technical lab and testing facility, located in the Greater Toronto Area, is fully permitted - up to and including Uranium/Radioactive Materials - and is currently being used by mining and clean technology companies for assay work, pilot plant modeling, technical studies, and environmental work. 62 Canadian & US patents have been developed at this facility to date.

Ore from the Vohitsara Property in Madagascar will be processed at this laboratory, saving the company and its shareholders a great deal of money. Upgrading the graphite in-house will result in higher profit margins for DNI in both the expandable and spherical graphite markets.

Every producing graphite mine must certify its products for carbon content, ash content, moisture content, particle size, and impurities. By having their own laboratory, experts, and a training facility, DNI will be able to provide its customers with a secure, reliable, and consistent supply of graphite.

If all of the above seems like a lack of focus to you, fine. We agree to disagree.

If a near-term re-valuation is so close at hand and if they have what they need to get the drilling done why sell equity at a $3M valuation?

FWIW, I don't share C28's view that this is a #-bagger in the near-term, and I wasn't exactly overjoyed at the prospect of the OS doubling in one shot.

The current situation is akin to a quarterback stepping up to the line of scrimmage, reading the defense, and realizing that the play he just called in the huddle is not the best one.

Options are now limited. Call the play and hope for the best; call a timeout and start a new "chess game"; or call an audible to try to take advantage of the situation.

checkmate28 wrote:

It was hard for me to say much before, but I'm cleared to say this now. DNI is working on acquiring a couple near vicinity strategic properties and working with a couple strategic partners to put this all together. This would make them an area play in one of the lowest cost, highest grade graphite/quality resource areas anywhere, and also set them up with the lowest CAPEX and lowest OPEX in the space.

Oh, sure, tip off the competition, why don't you? LOL!

Completing the mine at Vohitsara will take two years, let's say, and by that time, the properties that DNI are interested in now will most likely be purchased by North American and/or Australian competitors, or worse - by Chinese companies who have already bought producing properties on the island, and are looking for more.

Now what? They have to try to find saprolite properties somewhere else on the planet, where they lose a competitive advantage to all of the above??

When the landscape of your industry changes, you either adapt or you die (like Polaroid, who kept telling their shareholders, basically, "Digital cameras are a fad").

beigledog wrote:

I think it would show a lack of focus by management...

Well, I think your perception is unjustified. It's a graphite company that owns a property in Madagascar, and they are looking to buy more nearby, with the long-term strategy of adding a central processing plant. Unfocused, or a next logical step?

I already covered the scenario of building a mine first above. DNI has called an audible, rendering all opinions worthless. If people don't like it: don't invest, or sell all your shares. The solution is not difficult.

...and possibly a negative indication of what they think about the ore body.

You obviously spent a great deal of time reading the NI 43-101 report. LOL!

Good luck to all of you.