DIO 0.00% $1.27 dioro exploration nl

dioro tsx listing probably next week

  1. 2,218 Posts.
    The news I have is that final prospectus to be lodged in next couple of days, so as to allow TSX listing next week. Dioro mangement will go to Canada to attend PDAC (see http://www.pdac.ca/pdac/conv/) and do a extensive round of promotional and broker presentation activities.

    At the moment to ASX market for emerging producers is dead. There is little other way to describe it. The percentage of small / medium cap gold producers that have hit the wall or had major difficulties in the ramp-up stage over the last 18 months -including BMO, GLN, PSV, LVR, BDG, TAM, and most recently VRE - has scared the market.

    Whilst there are reports around value DIO 2.30-2.50 (and that's with gold around $A850-900), the mkt ain't prepared to pay this. I think it will take a couple of quarters of consistent production, with reasonable exploration news flow, to get to $2, assuming the gold market stays reasonably strong. Of course, the unknown is what the Canadians will do in terms of buying. There may be little liquidity on the TSX until the secondary capital raising takes place later in the year.

    The relative positives of DIO as I see them include the obvious ones - unhedged, no debt and no immediate capital raising requirements. With their operations close to Kal, they would also appear to have less cost and staffing pressures than the more remote operations - something that is crucial in the current environment. The also have multiple sources of ore - if for example, they had some delays at Frog's Leg due to rockfall or something (I'm sure they won't), they have enough ore supplies from South Kal (plus low grade stockpiles from Frog's Leg) to feed the Mill and keep them nicely in a cashflow positive situation. Thus overall their risk profile is lower than many of the above. However, until mid year, the mkt has little production track record by which to judge them.

    Overall, for the current mkt environment for emerging producers, I think that Australian buyers are just so risk adverse logic gettings thrown out the window.

    I have been accumulating in the 140's. Lets hope I'm right!
 
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