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Message: Re: Now is the time to Buy DNG

Sep 14, 2011 10:41AM
1
Sep 19, 2011 01:35PM

Here is what DNG has going for it and I expect after you read this and listen to the presentation, which I have linked for you, you will you understand how this Jr. realistically blows everyone else out of the water. If not, please forward a better company with more potential (outline the potential)as I am always looking for great investments.

DNG:

-is an exploration company that just added 5 new properties ( to be announced)

-Is an emerging gold producer. Will be producing its own ore from its Tumipampa property in 2012 (to be announced)

- Has a unique GROWING gold ore processing operation that is cash flowing positive

-will be announcing they are building a second gold processing mill in 2012

-does not have to rely on the markets money to grow the company, therefore shareholders are protected

-has proven that it delivers superior long term returns for its investors

-has a blue sky potential flagship property (Tumipampa) that is surrounded by 80 billion dollars of senior mining money

-has just completed a geophysical on Tumipampa that has revealed a new discovery.

-will be announcing a cross cutting campaign, which will discover further gold and allow for underground mining.

-will be announcing drill results from the on-going drill campaign

The company has been around since 1996 and has a foothold in Peru, especially when it comes to exploration and gold processing relationships and successes. The company has had very little share dilution over the years and currently sits at a low 35.6 million shares outstanding. The profits the company makes are used to develop exploration projects and grow its own gold processing and producing operations.

These points make it a LOW RISK BUSINESS MODEL.

DNG has strong institutional support of 60%

Gold production continues to grow... 2011 was the biggest year yet and 2012 is expected to increase by 25%. The average gross profit margin since 2000 is 15%.

This is the kicker..... The stock is behaving like the market is putting ZERO value on the 8 exploration properties! It gets more interesting and here is your upside. Currently the stock is trading at 5 times cash flow per share...this has been the low over the past. The high was during the last bull market less than 6 months ago at 24 X cash flow per share when the stock was trading at $2.13. During that time, gold production, milling capacity and exploration knowledge of tumipampa was not nearly as advanced as it is today. I'm sure you will agree we are in a corrective stage in the Jr resource bull market. Given DNG's stronger position today presents a stronger buying opportunity! The company is expecting 15 million in cash flow in the next two years. DNG is on course to generate cash flow per share of .40. If the market stays the same, at 5 times cash flow per share, that equates out to a share price of $2.00 a share. If we move back to a bull market and are trading at 24 times cash flow per share, that will take the stock price to $9.60 per share. This does notbinclude any exploration successes, which could drive the stock price up further unexpectedly.

If you are a serious investor, listen to the very current and detailed company presentation through the links below.

http://youtu.be/HE5YlmrsONM

http://youtu.be/lWsNDnH_TPI

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