Dacian Gold aims to reclaim more of its lost lustre
Embattled gold miner Dacian Gold has its sights set on regaining investor confidence as it desperately tries to claw back its reputation as a rising star
9th August 2019
Resources Rising Stars
Embattled gold miner Dacian Gold has its sights set on regaining investor confidence as it desperately tries to claw back its reputation as a rising star (reports The West Australian).
The fledgling miner and operator of the Mt Morgans gold project was punished after consecutive production downgrades shook investor confidence in the stock earlier this year.
The former market darling’s share price crashed from about $2.50 to below 38¢ in just months.
Dacian has since recovered some of its lustre — yesterday trading at $1.02 — but executive chairman Rohan Williams said he anticipated it would take at least six months to potentially lure lost shareholders back.
“A lot of investors that sold their shares that drove the share price down aren’t back,” he said.
“We’ve got to win their respect back, so we’ve got to demonstrate performance quarter on quarter and I hope they come back.
“There had been some long-standing shareholders that had been with us a long time that went out that day and I would like to get them back.”
Mr Williams said starting from scratch in building three underground mines and an open pit was a complex operation.
“Unusually for us, we’ve got four mines with three underground declines which are each of themselves separate mines plus an open pit feeding a brand new plant,” he said.
“I probably made the mistake of expecting it to be a 12-month ramp-up and 18 months to two years is probably the sensible number.
“I probably should’ve said an 18-month to two-year ramp-up at the start.”
Mr Williams said the company had been looking to diversify from a single-asset operation since September last year.
“We’ve all seen what happens when a single-asset company has a hiccup — you get belted.”
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