when Dioro bought South Kal project last year gold was about $A775, and the technical report done late last year for the TSX listing was projecting an average FY2008 gold price of I think $A810 ($860 average over 2008-11). Hmmm, I wonder how much South Kal would fetch today?
The free cashflow equation (after capex, a very important issue) from existing reserves has risen my calculations from $55 million to around $100million, assuming current $A gold price was only maintained for the next 40 months). This does not of course take into account the higher cashflow avilable from the replacement of lower grade South Kal reserve ore by Frogs Leg and Shirl U/G ore.
Dioro are unhedged, debt free, have money in the bank for development, have listed on the TSX (though have yet to create a retail mkt there), are not subject to state royalties at South Kal (and private royalties are quite low, probably about $25 oz at current prices)...
angus
DIO Price at posting:
0.0¢ Sentiment: None Disclosure: Held
