Agree with sentiments re:wage rises for management....very bad...

Agree with sentiments re:wage rises for management....very bad timing.
However, are we missing the big picture here?
Dio's M/Cap is about the price of the 2nd-hand value of their mill right now....so all the Gold is basically free.
Despite the odd geotechnical problem of late, as far as i know they are still on track to produce 90/100k ounces of Gold in 2009.
We know 38k ounces are hedged at around $1000 an ounce.

Let's suppose they produce 98k ounces in 2009, at a conservative all-up cost of $800/ounce.

Using AUD 1250 an ounce sale price= 60k ounces at $450 profit and 38k ounces at $250 profit.

Equals profit of 36.5M next year.

if they met production goals they will be trading at a p/E less than 1 next year.

With 7+ years of reserves (without further exploration) a P/E of 7 would be fair giving a target share price of over $2.

That's without Gold rising further....should Gold rise another $400 or so, double those figures as profit doubles.

I am expecting costs less than $850 but didn't want to pump.

Given that profit may be in the $30m+ range, will it really matter in the big picture if they add another $100k to salaries?

Though if I get a chance to vote against it i will.