Monday, October 10, 2011

donner metals + donnybrook energy

zinc + gas? how does that fit 2gether? well, the CEO dave patterson presented his 2 companies donner metals + donnybrook energy in munich 2day ... (pls follow that links for more details abt my perspective on these companies from former investor presentations ;-)

any news? well, the outlook for donner metals is great cos they are much closer to production of Zn / Cu / Ag / Au in quebec / canada as they have been at dave's last visit. nevertheless their share price collapsed in the recent market correction as if there were no tomorrow, hmmmm ... on top we will prolly see collapsing zinc output from existing mines, so we just have to get the demand side of the supply & demand pattern correctly in order to predict future zinc prices, true? .... btw, donner's production will replace the mill feed from an old xstrata's mine which is going out of production in late 2012 / early 2013 ... well, now u know why is xstrata zinc canada (65%) the major partner of donner (35%) in that promising project :-)

what abt donnybrook? hmmm, i had to leave early 2day cos i had a meeting in my office job which i couldnt reject or shift to a later time, so i just catched some of dave's explanations abt the energy + gas markets and abt new gas drilling methods in general, but not much abt the company itself ... i even dont know when should some drill results etc come out and im too lazy to move 2 their website for some update on operations ... but who cares? at the current low low low gas prices they should better keep their gas under the ground, shoudnt they?

u know what? the other folks out there told me that unlike 2008 there is a lot of money in the markets waiting for places to go in .... and yes, a debt financing (fixed rates for some time) is more popular than equity financing (private placements of new shares etc) ... hmmmm, strange, isnt it?  ... even AFTER the crash in the resource sector are the investors scared to invest, hmmmmm ...

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