Ann: Activity Report Quarter Ended 30 Sept 2018 & Guidance Update, page-3

Agree grussellt. And a good quarter in term of production and especially on the gold front. HGO is undervalued big time, BUT

i really think these reports could be more transparent. For example talk of "a healthy cash balance" is talking in riddles.

What is the cash balance at the end of the quarter? In terms of operational cash generation for the quarter some back of the envelope calcs:

2.42 US / pound copper from table 2

take off

D&A -- 31

deferred mining -- 26

add back

ore inventory -- 13

= $US 2.03

Based on revenues of $ 57.4 Mil at $9,030 tonne there were 6,356 tonnes sold (couldn't actually find this stated anywhere which seems odd)

So that's 14.009 Million pounds for A$38.96 M at 0.73 fx rate.

57.4 - 38.96 = 18.4 cash flow with $12.5 used for debt reduction

I think we're probably missing the cash flow assumptions presented in the 2017 notice of meeting. Is guidance based on these figures? I certainly thought it was, but can't see how we're going to get to free cash flows of $46 million after creditors and corporate costs for FY18. Would appreciate some clarity from management on this.

 

ie table 26: https://www.asx.com.au/asxpdf/20171109/pdf/43p32xrxwskbc4.pdf