Q: DC This was a top pick on BNN last week. Do you think Dundee has good long term potential if Gold rallies?
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5i Research Answer:
DC is a $253M market cap company with developing gold assets. It has no revenue, losses, and negative cash flow. Cash is $15M. It has a S. Dakota gold property that just released its maiden resource of 1.33M oz of indicated gold and 1.13M oz of inferred gold. Recent drill results have also been largely positive. It is early days still, but so far so good. It is a developing asset and we would expect reserves to grow. It is still a long ways away from a producing mine, however. Insiders own 17%. We think it is interesting, but high risk with the sector and size of the company. There is certainly potential here if gold keeps rallying.