Dacian Gold’s December quarter report showed production in line with a pre-release and costs -10% lower than expected. Cash generation was meaningful, the broker notes, and the NTM Gold ((NTM)) merger is expected to be completed by mid-March.
While the merger will add mine life and lift grades, the broker’s muted view on the gold price means Underperform and 34c target retained.
Target price is $0.34.Current Price is $0.51. Difference: ($0.17) – (brackets indicate current price is over target). If DCN meets the Macquarie target it will return approximately -50% (excluding dividends, fees and charges – negative figures indicate an expected loss).