‘Plenty of upside’ for Dacian Gold – The Australian Financial Review

Bell Potter has a “speculative buy” on Dacian Gold with a price target at $1.05 a share, up from 70¢ previously. 

“Dacian Gold (DCN) has released a Scoping Study which outlines a possible development scenario for its Mt Morgans Gold Project (MMGP) and demonstrates its technical and financial viability.

“The study contemplates open-pit and underground mining complexes centred on the Jupiter and Westralia Prospects, with ore processing carried out on-site through a stand-alone, 2.5Mtpa CIL processing plant.

“The operation would produce 1.20Moz over an initial mine life of seven years, with average gold production of 220kozpa in years one to five. Average Life-of-Mine (LOM) All-In-SustainingCosts (AISC) of $929 an ounce are estimated by DCN together with project CAPEX of $157 million. In our view, the results of the study are likely ahead of market expectations and leave upside for further value to be demonstrated through additional resource growth, operational improvements and mine life extensions.