DGR - D'Aguilar Gold (Molybdenum)

[whipit]

Another good day, hopefully the price holds :)

[percy]

In to-days market Update they say Armour energy Limited ASX listing April 2012.

[trackers]

Record date for priority entitlement to Armour Energy float looks set to be 9th March...Float is for $60mil and public aren't invited.

Should be interesting

[bung5]

very good indeed. worth 38 million to DGR. think from memory they are sitting on at least 10 million in cash? plus the other assets . Shasta - you have a new NTA summary?

[bung5]

Current market cap - $43 mil

Armour energy = 37.5 mil
met = 22 mil
ANW = $2.4m
NVG = $2m
SOLG (AIM) = $A5.3m
cash = 7 mil

= 67 mil or 20c per share nta
plus some other small holdings

should be a good week for DGR on this re rating

[bung5]

update from latest announcement

SOLG $4M,
MET $26.5M,
Navaho Gold $2M,
Archer Resources $4M,
Iron Ridge Resources $2.33M,
Pinnacle Gold $2.5M,
Armour $37.5M,
AusNiCo/Lions Gate Metals SFA
Cash $7M,

NTA over 28c per share on mark to market and cash. so for 14c now you are getting a lot of value!

Armour energy listing at the end of April will rocket and should see DGR share price 20-24c ish if it still trades at discount

[Entrep]

Anyone know what DGR have planned for the cash they receive from the Armor IPO? Trying work out whether it's worthwhile hanging on to my DGR shares

[bung5]

They won't be receiving any cash. All the cash raised stays with Armour energy. But on listing DGR will have a big re-rating towards 20c ( I'm guessing :P) worth holding on until May

[trackers]

There won't be... they're not selling down their shares, they're just increasing the shares on issue... I would like to think that DGR will rerate as AJQ debuts strongly and the market realises that DGR owns a quarter of it. DGR NTA is 28c without assuming any premium for Armour


Edit: Or what Bung5 says :)

[Entrep]

Sorry, very lazy question of me to ask! Thanks guys

[bung5]

There won't be... they're not selling down their shares, they're just increasing the shares on issue... I would like to think that DGR will rerate as AJQ debuts strongly and the market realises that DGR owns a quarter of it. DGR NTA is 28c without assuming any premium for Armour


Edit: Or what Bung5 says :)

We have very similar views!

[trackers]

Haha, yes we do! Hopefully both the correct one :)

[bung5]

DGR's holding in armour energy will be worth over 16c per share alone when its underwritten listing starts trading next month. add on 10c for their other listed assets mark to market.

13c now is very cheap price!


(armour heads and options)

[soulman]

Just too many sellers on the cue for my liking bung5.

[bung5]

Just too many sellers on the cue for my liking bung5.

Yes seems to be a few , is most likely people selling down to buy into AJQ listing. After the retail offer closes 11th April should be a a good couple of months. .. looking for 20c+ exit

[soulman]

You looking to get some AJQ bung?

I am looking to set a low price for DGR and see if it can get hit. Learn my lesson from buying stock that have too many sellers like PEX.

[bung5]

Yes I subscribed yesterday for the AJQ shares should be a strong demand on listing and a jam packed drilling schedule starting on May the 1st for the next couple of years all funded.

[bung5]

Keep a close eye on the sellers and buyers, could change quickly towards the end of next week

[Entrep]

What's up with all the sellers? People selling for Armour IPO doesn't make sense and surely wouldn't be enough to smash the price down like this?

[soulman]

Without any riveting announcement, DGR could come down to 10 cents. I have put an order there just in case. Just watching the shale gas downturn the last few days, by the time AJT comes out, the hyped might be gone. Won't be suprise if AJT comes out in the negative.

[bung5]

I'm not too worried in the short term. All the fundamentals are there, with a NTA of over 28c a share. Once AJQ starts trading the market will wake up to who is a majority share holder in one of the biggest shale gas plays on the ASX.

[Entrep]

With DGR at 7c and AJQ at 29 we are certainly in a very sorry state of affairs...

[BIRMANBOY]

Penny dreadfalls they call them in the US...I guess its the scatter technique isnt it. Take a punt on 20 cheapies and hope that 2 or 3 come through with sufficient impact to to outweigh the 17 that dont. Hope that people dont put all the eggs in one basket though. I Remember asking Shasta about DGR last year when it was doing well and the optimism was high with lots of hidden value not being recognised by an unaware market.

[percy]

Penny dreadfalls they call them in the US...I guess its the scatter technique isnt it. Take a punt on 20 cheapies and hope that 2 or 3 come through with sufficient impact to to outweigh the 17 that dont. Hope that people dont put all the eggs in one basket though. I Remember asking Shasta about DGR last year when it was doing well and the optimism was high with lots of hidden value not being recognised by an unaware market.

2 or 3 ?? 1 would be nice.Feel I am going down with the drill bit.!!!! The hole I am in is getting deeper,and darker.!!!!!

[BIRMANBOY]

2 or 3 ?? 1 would be nice.Feel I am going down with the drill bit.!!!! The hole I am in is getting deeper,and darker.!!!!!
My condolences.....they say fortune favors the brave so put them in the drawer and get back on the horse. No-one can be right all the time. We (humans) seem to have a tendancy to over think things. Shares go up..they go down. Every time bar once I have sold something because it was in the sh***er it has subsequently recovered ...even if it was years later. Admittedly none of these were spec or mining type stocks...however I do believe some folks are too quick to exit an apparently poor position.

[percy]

My condolences.....they say fortune favors the brave so put them in the drawer and get back on the horse. No-one can be right all the time. We (humans) seem to have a tendancy to over think things. Shares go up..they go down. Every time bar once I have sold something because it was in the sh***er it has subsequently recovered ...even if it was years later. Admittedly none of these were spec or mining type stocks...however I do believe some folks are too quick to exit an apparently poor position.

They say the night is the darkest just before the dawn;so I feel I am "well positioned" for the upturn.Even got another 10,000 HIT at 4cents today.Taken awhile as last lot I got was on 26/4/12.What one might call an illiquid stock.!!!!

[bung5]

AJQ dipping down on discovering gas in their first drill so not too much to worry about. only problem is time. Might need to wait longer for AJQ to re-rate once it has a resource defined. DGR getting valued where it should be is a different story. Probably would need MET to be taken over in the shorterm so substantial cash be returned to DGR then they need to distribute that to shareholders, which would be more cents per share than the current share price with some left over

[BIRMANBOY]

They say the night is the darkest just before the dawn;so I feel I am "well positioned" for the upturn.Even got another 10,000 HIT at 4cents today.Taken awhile as last lot I got was on 26/4/12.What one might call an illiquid stock.!!!!

So whats the difference between "illiqid" and frozen? 10,000 @4 cents seems like it might be a long term project :sleep:. I like to see some committment however so good luck.

[bung5]

Lets be honest with just over 4k you could get the shareprice up over 50%

[BIRMANBOY]

Pump and dump? It worked for the Hunt Bros with Silver...well for a while anyway.!!
Lets be honest with just over 4k you could get the shareprice up over 50%

[bung5]

Pump and dump? It worked for the Hunt Bros with Silver...well for a while anyway.!!

ahh now its 10k or for a limited time only 20k to increase 100%

[BIRMANBOY]

Percy said he would sell you couple of hundred thousand at 8 cents to help you out in the project.
ahh now its 10k or for a limited time only 20k to increase 100%

[percy]

Percy said he would sell you couple of hundred thousand at 8 cents to help you out in the project.

Sorry team I have lost the plot . Which one of my misadventures are we talking about? AJQ,DGR or HIT.? If it is HIT,they are not yet for sale.Hoping for a good operating profit announcement in August.Taken me over 18 months to get to 105,500.

[bung5]

Sorry team I have lost the plot . Which one of my misadventures are we talking about? AJQ,DGR or HIT.? If it is HIT,they are not yet for sale.Hoping for a good operating profit announcement in August.Taken me over 18 months to get to 105,500.


Selling DGR for anything under 14c is just crazy.

[Corporate]

Does anyone have a calculation of the current value of DGR listed investments?

[upside_umop]

Does anyone have a calculation of the current value of DGR listed investments?

Yeah interesting play corp. These sort of plays will generally trade well under NTA though wouldn't they? I look and see there negative operating cashflow for the last quarter of $2m and last 6 months of $5m. I guess you could argue these are all value add activity, but if it's $10m per year....that's probably close to $100m in present value. Even $50m would wipe it's investment value out. Just a thought.

A good one that I like that has listed investments is CTN - it pays a dividend and has some pretty impressive historical returns. They just seem to know how to pick stocks! It trades quite a bit below NTA too...

[Corporate]

Yeah interesting play corp. These sort of plays will generally trade well under NTA though wouldn't they? I look and see there negative operating cashflow for the last quarter of $2m and last 6 months of $5m. I guess you could argue these are all value add activity, but if it's $10m per year....that's probably close to $100m in present value. Even $50m would wipe it's investment value out. Just a thought.

A good one that I like that has listed investments is CTN - it pays a dividend and has some pretty impressive historical returns. They just seem to know how to pick stocks! It trades quite a bit below NTA too...

Good points UU and definitely take on board. I don't think it is quite that straight forward. The addtional costs in the last quarter and year to date are heavily influenced by AJQ being prep'd for IPO and also I would expect being consolidated up until the point of IPO.

[Entrep]

700k traded and sitting at 6c. Something seriously wrong with DGR...

[Entrep]

Lower lows and no cash.

Can't see this turning round for a long time?

[Corporate]

Lower lows and no cash.

Can't see this turning round for a long time?

I was extremely disappointed when I saw that they had run the cash balance down so low. I have since sold my holding and taken the 10% hit.

Yes they can sell down some investments for cash but that is only going to be used for admin and won't last long. Plus it will put pressure on the share price of DGR's investments and push them lower and therefore decreasing DGR's asset backing.

Then there is the issue that some of DGR's investments are getting low in cash and DGR is increasing the management fees! It seems to be a bit of a money go round with the directors/management clipping some shares/options along the way!

[Entrep]

My "hit" would currently be around 60%.

Yes, idiot for letting it go on so long...

Even bigger idiot for buying DGR to get into Armor IPO which is also down 60%!!!

Easily my worst ever "investments"

[Corporate]

My "hit" would currently be around 60%.

Yes, idiot for letting it go on so long...

Even bigger idiot for buying DGR to get into Armor IPO which is also down 60%!!!

Easily my worst ever "investments"

I feel your pain. I recently took a similar size loss on EXE and I've had a few complete write offs also

[bung5]

I feel your pain. I recently took a similar size loss on EXE and I've had a few complete write offs also

I'm down quite a bit on DGR but not worried at the share price at all. Is all on very low volume and substantially below NTA. It is a bit concerning however on the short term their cash holdings. That really is the only thing that has me thinking, not thinking enough to sell at 6c a share!

It could be possible that once MET releases their JORC resource later in the month they will look to exit this holding by trying to get it taken over. All very speculative, but could release around 30 million or more back to DGR as they have another 5 exploration companies to develop over the next few years.
The only issue I have with the dwindling share price right now is the limited ability to raise cash and will in turn mean that I would have to participate in a capital raising if that were to take place.

I was in correspondence with the company not too long ago and they advised that there were no plans for capital raisings, however will need to confirm that is still the case.

[bung5]

Have been advised they are working on convertible note arrangement. They will not capital raise with the current share price


(wouldn't be surprised it was CFE taking the note :P )

[Corporate]

Have been advised they are working on convertible note arrangement. They will not capital raise with the current share price


(wouldn't be surprised it was CFE taking the note :P )

That isn't a good thing. Usually a convertible note is at a hefty interest rate and can be very dilutive on conversion.

[bung5]

That isn't a good thing. Usually a convertible note is at a hefty interest rate and can be very dilutive on conversion.

Yes is the lesser of two evils. I'm waiting for a MET takeover. AJQ will be at least 2 years away IMO.

[Caesius]

I read a (IMO) very good post on "some other forum" describing how DGR's business model just doesn't work; any profits from these spinoffs are just used to pay for directors salaries etc. Cushy position to be in....

[deks14]

What is everyone's thoughts on the sale of 5mill orbis gold shares frees up about 1.75m in cash? Certainly better news for share holders than a convertible note one would think.

[Entrep]

Yup, 33% rise in SP shows it

[bung5]

Yup, 33% rise in SP shows it

Not too bad, hopefully it can hold

[Corporate]

I was extremely disappointed when I saw that they had run the cash balance down so low. I have since sold my holding and taken the 10% hit.

Yes they can sell down some investments for cash but that is only going to be used for admin and won't last long. Plus it will put pressure on the share price of DGR's investments and push them lower and therefore decreasing DGR's asset backing.

Then there is the issue that some of DGR's investments are getting low in cash and DGR is increasing the management fees! It seems to be a bit of a money go round with the directors/management clipping some shares/options along the way!

OOh well i certainly cockd that one right up!

[soulman]

Lower lows and no cash.

Can't see this turning round for a long time?

Cash of $1.7 mil coming in and DGR holdings in AJQ going bananas.

DGR has turned around in a matter of days Entrep. DGR shares not moving as rapidly as AJQ though.

[bung5]

With the MET jorc resource due in the next few weeks and AJQ finding a significant gas well in a large permit area there is big upside with DGR now . Some good months ahead hopefully

[Caesius]

OOh well i certainly cockd that one right up!

I don't think that you cocked that one up at all Corporate!

The SP has fallen to levels seen two years ago (although I'm sure the directors are still making a healthy profit). I'm beginning to wonder if they plan on running the company to the ground while clipping their tickets to the last. The last IPO was a disaster, and I hear that the company is fast running out of cash.

What is their strategy again?

DISC: hold

[Corporate]

I've been buying DGR today for leverage on AJQ

See post on HC

http://hotcopper.com.au/post_threadview.asp?fid=1&tid=1929107&msgno=8993916#8993916

[Corporate]

DGR was very good pickings at 5.9c today. DGR's holding in AJQ and AJQO is worth more than DGR along. By my calculations, it is a 35% discount to the value of AJQ/AJQO alone.

4324

[Caesius]

Remind me again how a rise DGR's assets will benefit shareholders?

[Corporate]

Remind me again how a rise DGR's assets will benefit shareholders?

This is the key question. And not unusual for any company that does not pay dividends.

I will be contacting the Chairman regarding options, and in particular a distribution of listed shares to DGR shareholders.

[JBmurc]

Yes be great to here corp,,,, could they say do a distribution of all there AJQ shares to Shareholders 12:1 rights issue ?? say for 20c raising = 5mill+ for DGR cash balance.....and shareholders get 18c discounted AJQ shares (maybe AJQ wouldn't like the idea) or something alone those lines ....ideally best way to avoid to much Tax and to benefit company (cash wise) and S/H's

then DGR could use funds to for next investment or invest more into the others it has interest in..

then repeat as investment mature

[trackers]

Remind me again how a rise DGR's assets will benefit shareholders?

Yep this is the clincher, no forseeable actual return for shareholders in any way

[Entrep]

Wouldn't an AJQ share distribution to holders still be taxed? Pretty sure it would.

[JBmurc]

Wouldn't an AJQ share distribution to holders still be taxed? Pretty sure it would.

yeah most likely ...not sure on the way round this i.e giving them to S/H at a lower value then lowering profit margin TAX etc ???

OXX distributed to members by way of a special dividend their CUE OIP shares last March

[Entrep]

Anyone taking up their rights? Closes Monday

[trackers]

Not a holder at the moment (except in Armour) but really impressed by Nick Mather's presentation: http://www.brrmedia.com/event/preview/z5x8eisful/113236?popup=true

Love the assets but its always been monetising anything for shareholders that's been my concern

[percy]

Anyone taking up their rights? Closes Monday

No.Not adding to any losing position.Not selling either.

[bung5]

No.Not adding to any losing position.Not selling either.

bought some few weeks ago at 2.3 so no need

[percy]

bought some few weeks ago at 2.3 so no need

With me not taking up any you are sure to be OK.
I didn't convert my CZNO options awhile ago.Should have done.CZN has gone for a run [without me.]!!!!

[bung5]

DGR looking quite attractive. up to 3.8c and now with the takeover of OBS looking likely should return around 27mil cash to DGR.. nearly double their current market cap.

[bung5]

literally 2 mins after I write that OBS release a board approved increased 71.3c takeover offer ( for OBS) .

[Caesius]

The issue as I see it, is that even if the cash comes through, DGR has turned into a bit of a gravy train for management and (maybe this is too cynical) I can see the cash being used to prop up the status quo for a couple more years while management take their salary and spin more failing companies (that they can sit on the board of, of course).

DISC: Frustrated long term holder