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Gold has gained more than 30 percent this year. And on top of that gold hit a one-month high on Thursday with buying accelerating after news that Pakistani opposition leader Benazir Bhutto was killed in an attack.
DGRI represents an incredible sleeper stock and gold investment! This U.S. Gold Mining company has production in place — owns its own mill — owns its cash flow and does NOT see a need to borrow cash for acquisitions.
A weaker dollar after data showing lower-than-expected U.S. durable goods orders in November also supported precious metals.
Spot gold, often seen as a safe-haven asset, rose as high as $830.05 an ounce, the highest since Nov. 26. It was quoted at $828.60/829.30 at 1524 GMT, against $823.00/824.30 in New York late on Wednesday.
Instability in Pakistan is favorable for the market.
Between Christmas and New Years the markets are very thin and people are jittery. Any such news is going to create a larger reaction than you would normally expect to see.
The one month implied volatility on gold had risen to over 20 percent.
Gold held in New York-listed StreetTRACKS Gold Shares, the world’s largest gold-backed fund, rose to a record high of 627.88 tonnes on Wednesday. It has surged nearly 40 percent this year.
U.S. gold futures rose, with the most active February contract trading up $2.70 at $832.10 from the New York settlement.
Review of DGRI
DGRI has two mines in the UNITED STATES — Southern Oregon.
Both of these — The Gold Bug and The Benton mines use the same mill (which Dutch Gold owns).
DGRI is in full production at one mine: the Benton Mine.
The Benton Mine: which is adjacent to Gold Bug has more free gold than the Gold Bug. Consequently, expected revenue on a per day basis will be higher for the Benton Mine than for the Gold Bug mine. This means the Benton Mine will produce more ore than the Gold Bug and the revenue per ton basis will be greater because it is from higher grade ore. The Company has noted this mine probably has a twenty year life.
The predicted .38 ounces per ton expected has proven to be accurate based on data since early March which indicates this is a good number. Gold Bug did find additional veins. The first gold was shipped last March.
The Gold Bug: has had 50,000 ounces produced historically and it is believed there is at least that much there to be mined as well. Gold ore from the Gold Bug is sulphide gold. Production on this mine will begin in 2008.
DGRI Mill: The capacity of the mill is currently 330 tons a day with the ability to reach 430 tons a day which will handle both mine’s production.
Most importantly the CEO has announced he does not see need for significant additional cash going forward. The CEO notes: DGRI owns its cash flow and has access to that cash flow to finance acquisitions.
DGRI has held its own for quite a while. The news that they intend to be listed on the OTCBB and will conform to all the requirements of the OTCBB indicates that this company intends to share its financial activities on a quarterly basis with the investing public.
Dutch Gold Resources published reserves can be reviewed here in their most recent SEC Filings.
Benton Mine
Source: Dutch Gold Resources
Dutch Gold Resources, Inc. 3500 Lenox Road
Suite 1500
Atlanta, GA 30326
Phone: (404) 419-2440
Email: info@dutchgoldresources.com
Website: www.dutchgoldresources.com
Investor Relations: David K. Waldman / Klea K. Theoharis
Crescendo Communications, LLC
(212) 671-1020
About Dutch Gold Resources, Inc.: In January 2007, Dutch Gold Resources, Inc. acquired Dutch Mining LLC, which was founded in 1994. Dutch Gold is engaged in the mining and processing of proven gold reserves in North America. The company’s strategy is to focus on overlooked resources which can be quickly and cost-efficiently brought into production. The Company currently owns two mines in southwestern Oregon, consisting of the Benton and Gold Bug Mines. Production resumed in March 2007 and the Company has begun a drilling program to prove up additional reserves, and enhance future production. Please visit the Company’s website for additional information at: www.dutchgoldresources.com.
Certain statements in this release, and other written or oral statements made by the company, including the use of the words “expect,” “anticipate,” “estimate,” “project,” “forecast,” “outlook,” “target,” “objective,” “plan,” “goal,” “pursue,” “on track,” and similar expressions, are “forward-looking statements” and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The company assumes no obligation and does not intend to update these forward-looking statements.
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