Login ID:
Password:
Partner Login
Contact Us : 7066511911

Could Less Be More for Doray Minerals? -- Market Talk

29 Jan 2017 11:24 pm

2324 GMT [Dow Jones] Could less be more for Australian gold miner Doray Minerals (DRM.AU)? Macquarie says the bad news of a production downgrade at its Andy Well mine in Western Australia is offset by the promise shown by its Gnaweeda project. Doray is targeting FY17 output at Andy Well of 50,000-55,000 oz., below Macquarie's 68,000 oz. forecast. But that's a more achievable and sustainable target for small, narrow-vein mine, Macquarie says. Doray wants to spend less at the existing Andy Well mine so it can advance studies at Gnaweeda, which currently has a 266,000 oz. resource. Success at Gnaweeda could lift overall Andy Well output to 100,000 oz./year in around 18 months. "Progress at Gnaweeda looks encouraging and a positive study outcome could result in a significantly improved longer-term outlook," Macquarie says. It retains a neutral call. DRM last traded at A$0.455, below Macquarie's A$0.50/share target. (david.winning@wsj.com; @dwinningWSJ)
 

(END) Dow Jones Newswires

January 29, 2017 18:24 ET (23:24 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Disclaimer
Top 5 Special Reports
Weekly: ICE Raw Sugar Ends Nearly Flat Aided By Strong...
USD/INR (Jun. 20) Consolidating in a Multi-Week Rang...
USD/INR (Jun. 20) Consolidating in a Multi-Week Rang...
USD/INR (May 20) Consolidating in a Multi-Week Range...
Cotton Yarn Prices Set To Slide About 9%; Buying Oppor...