Dacian Gold (ASX:DCN) share price down 8% on quarterly activities report

Shares in the small cap gold producer are tumbling after missing production and cost guidance.
The post Dacian Gold (ASX:DCN) share price down 8% on quarterly activities report appeared first on The Motley Fool Australia. –

The Dacian Gold Ltd (ASX: DCN) share price has tumbled today after the company released its June quarter and FY21 activities report.

Earlier, the Dacian Gold share price was down 8%. At the time of writing, shares in the gold producer and explorer have recovered slightly but are still down 4.84% to 30 cents.

Why the Dacian Gold share price is sliding

The Dacian Gold share price has been pushed lower this morning as investors respond to its quarterly activities report.

At the time of writing, approximately 7 million shares have traded hands. To add some perspective, its 10 day average volume is approximately 2.5 million.

According to the release, Dacian Gold produced 25,558 oz of gold in the June quarter, at an all in sustaining cost (AISC) of $1,742/oz.

The company’s total FY21 production came in at 106,919 oz at an AISC of $1,552/oz.

The Dacian Gold share price might be responding negatively to the fact that these operational figures missed the company’s full year guidance of 110,000 to 120,000 oz at an AISC of $1,400 to $1,550/oz.

Looking ahead

Dacian Gold is targeting FY22 production guidance of 100,000 to 110,000 oz at an ASIC of $1,550 to $1,700/oz.

The company said that it is “embarking on a significant growth investment … for the long term”, allocating $20.4 million to exploration and $66.5 million to project development.

According to the announcement, an update regarding life-of-mine for Mt Morgans and the Redcliffe project is on track for release later in the September quarter.

What did management say?

Dacian Gold Managing Director, Leigh Junk commented on the result, saying:

Whilst we delivered a robust production result for FY2021, we did fall slightly short of our planned target for the quarter. Dacian has had a significant year nonetheless with the acquisition of Redcliffe, further reductions in our debt and hedge positions, completion of over 160,000 m of exploration and resource definition drilling and re-positioning our exploration strategy towards making the next generation of discoveries, all contributing to our growth-focused endeavors ahead in FY2022.

We are keen to soon reintroduce high-grade ore from the Westralia mine area into our production profile and are busy working towards developing the Redcliffe project into production. Our upcoming life-of-mine plan will be the Company’s first opportunity to bring all these projects into a base case mine plan for our Laverton operations and we look forward to completing that work this quarter.

About the Dacian Gold share price

The Dacian Gold share price has tumbled 36% year-to-date, hitting a 2-year low of 25.5 cents on 30 June.

However, it isn’t just Dacian Gold that’s struggling.

Household ASX gold shares such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) have also slumped this year, down 19% and 7.2% this year.

The post Dacian Gold (ASX:DCN) share price down 8% on quarterly activities report appeared first on The Motley Fool Australia.

Should you invest $1,000 in Dacian Gold right now?

Before you consider Dacian Gold, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Dacian Gold wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

The Whitehaven Coal (ASX:WHC) share price lifts after quarterly update
Why the PolyNovo (ASX:PNV) share price is sinking 6% lower on Thursday
The ASX 200 is trading near record highs – time to worry about popping bubbles?

Why is the SelfWealth (ASX:SWF) share price frozen today?
ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!