Value Microcaps Junior Miners

[dr_airtime]

DPM.TO + 25% from Tax Loss Selling Purchase

Good day for all the junior producers. DPM up strongly and good one to own on a potential rebound. I did buy in late December again. Bought in summer 2013 too.

Went +60% during August-September in 2013. Link back to slide 16 on previous post to see how DPM.TO has lowest AISC in gold sector due to strong base metal credits.

Part of selloff was concerns that DPM did not have means to finance capex on their Namibia smelter in 2014 due to declining free cash flow. Going off memory here but they have a $150M undrawn revolving line of credit so no risk of dilution. They won't be able to finance the spend with free cash flow at these prices of course.

Checkmate, AISC is not from me it's from the World Gold Council:

http://www.gold.org/media/press_releases/archive/2013/06/guidance_note_on_non_gaap_metrics_pr/