dioro

Dioro will have a heavy capital expenditure program for 2008. They are expensing it as production comes line, and as such I expect them to be cashflow negative, or close to it, for 2008. However they have the cash resources to absorb this, assuming they met the operating targets at South Kal and Frog's Leg.

I guess the upside of the gloom in the gold business is that it increases the changes of Dioro getting 100% of Frogs Leg, but this is speculative.

While the gloom persists, and there are forced sellers and buyers can just sit back and get their order filled, I can't see any major share price gains with Dioro. The resource increase today (assuming it leads a reserve increase of say 200,0000z) is probably worth 15-20c a share to Dioro. But we saw what happened.

angus