Win us with honest trifles

Dalradian (DNA.to) provides a market litmus test

The news out from Dalradian Resources (DNA.to) today is strong and positive. Reading the whole thing is recommended but for the tl:dr among you, the title of “Dalradian Announces New PEA With 36.2% After-Tax IRR Using $1,200 Gold for the Curraghinalt Deposit in Northern Ireland” contains the main elements.

  • You got a new PEA
  • You got a strong post-tax IRR
  • You got that even at today’s lower gold price.

Which brings us to the reason for the post, because under “normal” (whatever that might mean) market conditions for juniors, you could guarantee a decent pop and sustained higher price deck for the DNA.to stock price. But as you probably know this isn’t a normal time, juniors are in the deep funk, people losing jobs in all places, Bay St divorce rates ticking up, weallgonnadie etc so I’ll be watching DNA action today and tomorrow to see how it gets on; a better sentiment indicator for the sector is difficult to imagine.
Full disclosure: Yes I’m just watching today, because I own some DNA.to, I first bought in October 2013, added some reecently and my cost average as stands is 64c. It’s one of the very few pure exploreco plays I like at the moment, not planning on selling anytime soon. 

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