Discovery Metals (DSV) - Cordero Bringing Size & Margin In Focus
Seeking Alpha Analyst Since 2019
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- TSX-V: DSV.
- Shares Outstanding: 300.8M.
- Share price: C$2.00 (11.11.20).
- Market Cap: C$603M.
Discovery Metals’ 100%-owned Cordero project is one of the world's largest undeveloped silver resources. Cordero is located in the Chihuahua State, a very active mining state in northern Mexico.
The Company is currently advancing Cordero with the objective of defining a high-margin project with scale that retains excellent leverage to rising silver prices. The Company has a strong balance sheet and has excellent backing; it is part of the Oxygen Group of companies and Eric Sprott is its largest shareholder.
Discovery Metals is run by an enterprising management team,Taj Singh is driven, bright and ambitious and is ably supported by geologist Gernot Wober and they have an excellent share registry and market profile. They also have a strong balance sheet and over CAD$80M in cash.
Taj is keen to push the size of the system and explains why they are keen to re-do the previous PEA which had been commissioned by the previous management team. They want to work in a different way and feel that it may answer a few of the technical questions about how to mine this as a low cost operation. They are going to focus initially at the higher-grade core, and look at the approach to their 'mega pit', strip grade and feeders, and understanding the veins to be able to deliver a rigorous PEA 'PLUS'.
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