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  1. 10,204 Posts.
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    I really don't see a great improvement in June quarterly performance -maybe a reduction from 60c/lb to 55c/lb in operating costs would be the best you could hope for but Stage1 isn't ever going to produce the profits we're looking for.
    I'm not looking for a good cashflow performance either as they had greater committments this quarter including the first net royalty payment to RMB-so I'm actually expecting a lower bank balance at Jun than Mar.
    It's also unlikely they've done any drilling this quarter at Kapulo as I believe they are yet to get govt approval to enter the area due to security issues-so if they're going ahead with Stage11 at the beginning of 2004 you would think it has to be at Dikulushi.
    Don't think you can start calculating Kapulo profits until they do their $US300k drilling program there.
    Stage11 at Dikulushi will still be very profitable with estimated annual profits of $A20mil after ramp-up.Kapulo in later 2004 will be icing on the cake.
 
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