Argonaut recently attended a site visit to Doray\'s (DRM) Deflector Mine. We noted a number of recent changes which potentially change project scope going forward. These zones are yet to be incorporated into reserves and the Deflector mine plan, but we see considerable potential for the new mineralisation to add to the mine life and production upside. On our new modelled forecasts DRM trades at an undemanding 4x EV/FCF for FY19, incorporating our forecasts for ~80kozpa Au production and 3.5Kt Cu at AISC of <$1,000oz. Key news flow will include resource upgrades and the potential for increased production via the development of the Link Splay and Da Vinci Lodes by mid-year. BUY (prior HOLD), TP $0.41ps.
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