The Temptation of Dacian Gold Ltd (ASX:DCN)

I used to own Dacian Gold Ltd (ASX:DCN), but fortunately not since last year so I avoided the precipitous drop from around $2.75 to under 50c this year. I think the stock looks very cheap, but I thought it was cheap at $2.50 too. I am not much of a resources investor.

The transition from an explorer to a producer is tumultuous. Testing, planning and studying reveal glimpses of project value, but only when a mine is operational is the whole truth visible. Everyone involved in the steps leading up to production is incentivised to tell the best story possible. Investors often buy the fairytale causing the share price to rally hard. Then reality hits and trust dissipates, sentiment turns from buzz to blow, and suddenly there is a genuine investment opportunity. I think this might be the case with DCN. I don't like miners as a general rule, but I do like the gold price right now.