Q: hello 5i:
I've read the one question there was on DNG, in October. Wonder if anything has changed for your outlook (I realize this is a very short time lag, but.......). Here's what I have read about them:
As an ore processor alone, Dynacor is a great value play. It is currently trading at less than 0.5x sales, with a ROE of 36.01%, a current P/E of 6.67, and trade roughly at the net market value right now. This translates into a very efficient use of current assets that generate a return far superior to many other avenues in which a retail investor can invest. It's also a growth story - Dynacor has increased its daily ore processing capabilities to 220t of ore per day, and is self-financing the expansion of another processing facility. That translates into at least 50,000 ounces of gold processed for 2012 (revised up to 58,000 this month), with the new facility increasing expected production up to 100,000 ounces of gold for 2014. Its latest month saw over 6,000 ounces of gold and 14,000 ounces of silver processed, for sales of over $10 million. If monthly production is maintained or increased, Dynacor is trading at a mere 0.3x sales and an annual net profit closer to $0.28/share with four quarters at current operations, leaving Dynacor trading at a forward P/E of roughly 4.3. In other words, dirt cheap.
Very interested in this company, particularly since you say management is very good. Your opinion please.
Paul
I've read the one question there was on DNG, in October. Wonder if anything has changed for your outlook (I realize this is a very short time lag, but.......). Here's what I have read about them:
As an ore processor alone, Dynacor is a great value play. It is currently trading at less than 0.5x sales, with a ROE of 36.01%, a current P/E of 6.67, and trade roughly at the net market value right now. This translates into a very efficient use of current assets that generate a return far superior to many other avenues in which a retail investor can invest. It's also a growth story - Dynacor has increased its daily ore processing capabilities to 220t of ore per day, and is self-financing the expansion of another processing facility. That translates into at least 50,000 ounces of gold processed for 2012 (revised up to 58,000 this month), with the new facility increasing expected production up to 100,000 ounces of gold for 2014. Its latest month saw over 6,000 ounces of gold and 14,000 ounces of silver processed, for sales of over $10 million. If monthly production is maintained or increased, Dynacor is trading at a mere 0.3x sales and an annual net profit closer to $0.28/share with four quarters at current operations, leaving Dynacor trading at a forward P/E of roughly 4.3. In other words, dirt cheap.
Very interested in this company, particularly since you say management is very good. Your opinion please.
Paul
