Discov. Met Share Discussion Threads

[scottishfield] 30/3/2011 21:56

jhanson,

welcome (back) to dme, you chose a good entry point. It's difficult to say about sipps &/or isa's not knowing yr circumstances. I have both & have always regarded both as my pension pot. So I try to fill my complete isa each year & contribute as much as I can afford (I'm still employed) to my sipp annually. Generally, my sipp is more expensive to administer, but that may not be the case for everyone. A good healthy balance has proved good for me, but you really must consider your own position re age, dependants, outgoings, employment (or not) etc. Best of luck in any case, you will find this board is relatively quiet. dme is a good long term hold, imo (in either a sipp or isa or both) to add to when you are able. rgds s-f

[jhanson] 29/3/2011 22:50

Hi Guys

Interesting last few days posts and a good read. I took a position here the other week at 70p. I had been in 12 months ago and sold out quite simply got this wrong i should of held.

I am currently exploring the idea of setting up a Sipp. Looking to decide whether it is worth having an element of a management fee and the practicalities of this over an Isa or whether to have both running incognito.

Any comments you guys have regards this will be read with interest and whether you have such a plan in place. Thanks in anticipation.

Whilst not company specific it is possibly appropriate. I attach

29th March 2011

LONDON - Copper is the most favoured base metal in BlackRock's $17-billion World Mining Trust, fund manager Evy Hambro said on Tuesday, with the demand and supply outlook keeping prices of the metal resiliently high.

At just under 20 percent, copper is the single largest weighting on a pure commodity basis in the fund, Hambro told an Association of Investment Companies roundtable in London.

"The fundamentals in copper are very supportive of today's pricing environment," he said.

"The margins available for the producers really are quite extraordinary today, with costs substantially lower than today's market prices, and as a result margins are incredibly high."

Three-month copper on the London Metal Exchange closed at $9 590 a tonne on Tuesday from $9 535 at the close on Monday, some way off a record high $10 190 it hit last month, but still around 20 percent higher since the end of March last year.

[scottishfield] 29/3/2011 10:53

Hi Hec, as Chip says, a long termer. It's tucked away in my Isa, I have been here a while but was v happy to top in again recently (@ around 70 i think it was). Dme does give you those opportunities. There is a lot going on, hopefully it's one that doesn't entail a lot of 'worry'. best of luck, S-F

[chipperfrd] 29/3/2011 10:48

Hi H,

It is all about probabilities!

DME has a commanding position in a brand new copper belt (Hanna Mining are also there but are a little earlier in development).

I calculate significant upside from the Boseto open-pit alone, but we are already seeing the scale being pushed out with the underground, larger processing plant & coal power station - all of which were not in the BFS.

It looks highly probable that there will be, at least, another 2 Boseto's in development once Boseto#1 provides the cash flow for further developments.

As far as I am concerned this is likely to be an excellent 'pension plan' for my children so I am taking a VERY long-term view.

I have never forgotten how I missed buying FQM at c. 150p - nuff said!
Chip

[hectorp] 29/3/2011 09:55

Morning s-f,
DME cap well over £300M already? seems pretty high for the stage of the developments chaps...I know chip is in this but so far I'm not also invested. It's come a long way fast from 20p.
H.

[scottishfield] 25/3/2011 18:56

a quiet board is v good!

[hiijinx] 24/3/2011 08:11

great link excellance

[excellance] 23/3/2011 21:14

interesting recent presentation in london...

[excellance] 22/3/2011 20:12

"...infill drilling of the Zeta underground resource....results from the final 17 holes expected before the end of March 2011.
Results reported to date (from 35 holes) have exceeded expectations in terms of
grade and thickness of mineralization intersected. An updated resource estimate
is planned for completion by the end of Q2, 2011."

"An 11 hole preliminary programme has now commenced at Plutus to test the
underground mining potential at that location."

"A key initiative of the Company in 2011 is to better
understand the potential for underground mining at Zeta and Plutus, with a view
to increasing production at Boseto beyond the currently planned 36,000 tpa
towards 50,000 tpa."

"A key goal for Discovery Metals in 2011 is to investigate the potential for
increasing production levels beyond those currently planned for at Boseto i.e.
to process 3 million tonnes of ore per annum, producing 36,000 tonnes of copper
and 1 million ounces of silver per annum."

[davidblack] 21/3/2011 22:48

Happy to be a customer of a pub but nothing else.

I have an aversion to cash enterprises wherever they are sited.

[davidblack] 21/3/2011 22:45

Spain's issue is they for over 200 years made a living off the back of Latin America through slavery and theft. T

hat "Gift" became Spain's poison which destroyed the virtues of proberty and thrift.

Ironically those in Spain who do succeed really can make it as there is little competition.

The rule is however that foreigners are not included.

[excellance] 21/3/2011 20:51

David,

Much of the world appears to live in fear of the foreigner, and many places have a very nationalistic, protectionist or at least clicky mentality particularly relating to religion, ethnic group or tribal background. Set all that into a social environment where law enforcement, the judiciary and politicians are corrupt as most on earth and i guess thats why Spain is a desperate and failing state...

...just try and run a pub there and see for yourself!

[davidblack] 21/3/2011 20:40

Spain is a country where no one wants anyone else to do well, that is the difference. Sad but simply the case.

DME is a business in a business friendly country.

EMED has a great project sadly located in a country whose general route to prosperity is to "Collect" of someone elses hard work.

Spain's tragedy started when they discovered the America's and persists to this day.

For Spain, also read Greece, Portugal, Italy, Russia etc

[chipperfrd] 21/3/2011 15:05

Peter, I do have it, so perhaps we can take this off-line. Chip

[p3dr036] 21/3/2011 14:21

Chip - regarding EMED, I am divided in my opinion. I have held shares for a number of years and met Harry Anagnostaras-Adams a couple of years ago at the Master Investor Show. He impressed me then and I still feel confident that the local government in Spain [Junta de Andalucia] will eventually grant permission to re-open the old Rio Tinto Mine there. But EVENTUALLY is the key word!

The problem for me is that the saga has dragged on and on and on now and I sold some shares last month as I felt then that there were better opportunities around.

You probably know all this but I'm putting it down here to bolster my reasons

There have been some positive developments since I sold the shares and perhaps [there's always a perhaps!] things might be getting better for EMED. There is a great deal of local pressure on the Junta to allow the re-opening, as some 400 jobs would be created in what is one of the poorest areas of Spain with very high unemployment levels.

But overall there is a history of shenanigans and dodgy dealing which pre-dates EMED. The previous owners of the mine are involved in this and the story is convoluted. The story also has local political overtones and there are said to be government and political party individuals involved in this past history.

EMED appear to be closer to getting permission and appear to have had their 100% ownership of the land on which the Rio Tinto mine is situated confirmed in the last few days. But they do not own all the land where the tailings dams are situated. EMED has, I understand, been trying to negotiate for years with these owners, who are said to be connected to some of the previous owners!! EMED's access to the dams has been blocked by the landowners and a court case, started by EMED, is presently on hold.

If EMED cannot negotiate their way through this morass they will go to court and I understand that there is a legal solution via Compulsory Purchase. But this will inevitably take time.

You ask how I rate EMED's probability of getting to production. My answer is that I think they will get there but it is unclear exactly when that may be.

Slide 21 from EMED's March 2011 presentation shows a period from Q2 to Q4 2011 for "Detailed engineering, site preparations, operating licensing, commence commissioning for production in 2012".

If EMED get their permission then their future profitability would be good. According to EMED there is no other current Copper Project anywhere that could be put into production for $70-100M dollars. they have the funds and the expertise. All they need is the will of the local governing authority.

Bit of a sorry saga really.

Do you still have my e-mail address? This was so long and off-topic [apologies to all!] that I nearly sent it you by e-mail!

Cheers
Peter

[excellance] 21/3/2011 13:36

chip, exactly...

i hope that in 10 years time there will be 4 Boseto size mines, possibly a railway, and then there are the other licenses to consider...

EMED has a few local issues to solve also, which i am sure they will sort out, but there is always the possibility of a long and protracted legal dispute, the outcome of which can never be certain...

[chipperfrd] 21/3/2011 13:30

Peter,

Perhaps I should have added that, in the case of DME, I am holding for the probability of multiple Boseto's!

It is still way to early to try and model such an eventuality - but it does look highly probable in my opinion.

With WTI it is possible to factor in their (5-year) growth with a reasonable probability and likewise with RMM.
Chip

[chipperfrd] 21/3/2011 13:10

Peter,

I dropped out of EMED quite some time ago but I still keep my model rolling as a comparator to my other copper stocks.

On a 5-year view it shows as offering the greater upside (slightly more than WTI) but fairly significant in terms of DME, FND & RMM. But I may need to adjust my EMED model!

However, on a risk/reward basis I am pretty happy with my current holdings although I must admit to have not followed EMED closely with regard to recent events.

Perhaps I need to refocus on EMED as a possible addition given the likely strong showing of copper stocks for the next few years.

How do you rate their probability of moving to production and what, in your opinion, is their likely time-scale to first earnings?

Regards
Chip

[p3dr036] 21/3/2011 12:57

Chip - downloaded the DME document & thanks for the link.

I currently have got the DME presentation and the recent March 2011 EMED Presentation side by side on my screen. The comparisony is interesting.

Would be interested in your thoughts on the two copper projects. At the present rate of progress with permitting in Spain and the mining development in Botswana, they could be getting into their production strides at around the same time.

Any comments?

regards
Peter

[scottishfield] 21/3/2011 08:32

thank you chip.

[chipperfrd] 21/3/2011 00:31

In case anyone has not already seen it, here is the March presentation from DME.
(It does take around 45 secs to load)

[thorpematt] 18/3/2011 21:23

Yes great opportunity here last few days. Unfortunately I have not had the liquidity to cash in (schoolboy error really to be fully loaded at any time).

Of course my miss-fortunate is insignificant on the grander scheme.

Should be good upside from here.

[hamish123] 18/3/2011 14:34

Don't often post but have been in DME since 45p.I had a good laugh to myself last night when i read on the iii board someone questioning a post which gave a target of 100p by year end.The response was what was this based on as the chart looked more like 20p!!!.I think it's fundamentals,which remain rock solid here.

[scottishfield] 17/3/2011 13:50

added today, very pleased with the price

[p3dr036] 17/3/2011 09:56

DML have e-mailed shareholders regarding Deutsche Bank [Australia] Report on Boseto, following a site visit. Report can be downloaded from the DML website.

Though it doesn't contain any new information for long term holders, it is worth reading. It confirms the positive outlook.