one to watch people, page-5

I am surprised that nobody commented on the financial statements so far.
They contained IMO some interesting pieces of information, in particular
relating to the recent cash cost discussion.

It was stated total cash costs for June 0,70 (all figures in US $ pro lb)
after throughput has finally reached more "normal levels".

What could this mean for Diki looking forward into 3/4qtr and beyond?

Since it was further stated that operating expenses in 2nd qtr experienced
a non reorcurring charge of 800 K this amounts IMO to roughly 0,11 that
can be deducted in the future.

Further "savings" are likely in the next quarter(s), because

a) economies of scale because of second ball mill running
b) higher grades (=> higher recovery and concentrates grades
=> less transport and TCR costs)

c) higher silver content and price

a) to c) i would guess could sum up to 0,05-0,1.

So: 0,7
minus 0,11
minus 0,05-0,11 could mean cash costs of around 0,54 - 0,48
in the near future with some scope fur further downside (because
of higher grades in 06 and beyond.

Assuming Diki output of 10-11 mln lb (as some here have been suggesting) and
also higher realized cu prices next financials should be a much more enjoyable
read. May be Miningnut can say what his model is now suggesting.


cheers