Dalradian Cmn Share Discussion Threads

[andrbea] 23/3/2015 13:48

75% undervalued?

“DNA currently trades at $29/oz, or ~25% of PRB’s takeout value,” the note states.

[andrbea] 03/3/2015 14:32

still cheap it would seem (compared to peer company Probe)

The note goes on to assert that there are “a limited number of high-quality projects available,” meaning that producers with healthy balance sheets will be closely keeping an eye on undervalued developers such as Dalradian. “We submit that Dalradian, owns one of these high-quality assets as Curraghinalt offers palatable capex and high grades which result in strong project economics in a reasonable jurisdiction,” the firm states.

Furthermore, the firm argues that Dalradian has a relatively discounted valuation compared to Probe, comparing the two companies on the basis that both focus on higher-grade, underground deposits. “DNA currently trades at $29/oz, or ~25% of PRB’s takeout value,” the note states. It also points out that a preliminary economic assessment has been completed for Curraghinalt, while Probe’s project has not yet reached that stage.