Dacian Gold (DCN) commenced gold production at the Mt Morgans Gold Mine in Western Australia on 29th March in line with the feasibility forecasts for a completion in the March Q CY18. Guidance has been updated with production in the June Q CY18 of 30-40koz and FY19 production of 180-210koz. Exploration continues aggressively at Beresford and Cameron Well with updated Resource and Reserves expected in the 1HFY19. DCN trades on undemanding EV/Production metrics of $3,000/oz vs the peer group averaging $6,000/oz. We now expect that DCN’s discount to our NAV and its peer group valuation will unwind as the production commissioning is completed. BUY, TP $3.66ps
To access our review of Dacian Gold please log in under the Client Area Log In at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
Perth:
clientservices@argonaut.com
+61 8 9224 6888
Hong Kong:
clientserviceshk@argonaut.com
+852 3557 4888
