Company Profile
DGO’s vision is to build a portfolio of strategic holdings in ASX listed companies with major brownfield gold resource growth potential, and large-scale greenfield discovery opportunities, to achieve substantial growth in shareholder value.
Purpose
DGO’s purpose is:
- To provide an outstanding opportunity for investors to participate in a discovery-leveraged investment in gold;
- To apply technical expertise and disciplined allocation of capital to maximise returns for shareholders; and
- To build on the successful history of the WA gold industry and to lead the cost effective discovery of gold resources underpinning substantial future growth.
Strategy
DGO has a two-pronged strategy for creating wealth:
- Investing in ASX listed brownfield explorers that satisfy key selection criteria;
- Acquiring strategic, global scale greenfield discovery opportunities.
This strategy provides shareholders with leveraged exposure to multiple projects.
Brownfield Strategy
In-house research has shown that brownfield discovery generates an attractive return on investment. From a finding cost of $15 to $25 per ounce to an average producer valuation of $100 to $200 per ounce provides a return on investment over 5 years in the range of 50% to 100%. DGO seeks to identify large scale brownfield gold discovery opportunities that meet three key selection criteria:
- Low finding cost: Less than $20 per resource ounce.
- Potential for scale: Potential for +5 million ounces.
- Optionality on the upside: Substantial coherent land holding with long term resource growth potential.
Detailed review of over 100 Western Australian gold explorers and developers generated a short list of approximately 15 high priority potential investee companies. DGO has invested in two to date; De Grey Mining Ltd and NTM Gold Ltd. Both companies are adding shareholder value at a finding cost of approximately $15 per ounce and have 2 to 3 years of resource delineation ahead of them. This strategy recognizes the huge margin between the cost of discovery and the value attributed to it by the market.
Greenfield Strategy
DGO seeks to build large land positions in strategic locations that meet three key selection criteria:
- Prospectivity: Geological analogue to world class, sediment hosted deposits.
- Potential for scale: Potential for +5 million ounces.
- Proximity to infrastructure: Substantial coherent land holding in close proximity to existing processing plants.
Utilising DGO’s technical expertise and specialist consultants, value is created through detailed analysis of geology and past data, industry leading research to generate targets, and proof of concept on ground exploration. DGO routinely considers ways to maximise the value of these projects to shareholders through discovery and delineation of resources, joint ventures, or trading land for equity.
(ASX Code: DGO)