HGO won't be able to demonstrate any historical results prior to option exercise and, if anything, would need to provide an annualised cash flow for the next 2-3 years. However to highlight the quantum change now occurring a quick examination of recent mining costs and waste/ore ratios will provide a good clue.
2015 2016 2017(Q1) 2017(Q2) 2017(onwards)
Mining costs ($m) 81.7 73.6
Waste/ore ratio 5.27 4.34 4.24 4.50 1.80
The high stripping ratio from 2015 to Q2/2017 represents the $60m investment in pre-strip which is a once-off. The lower ongoing ratio may come close to halving mining costs and lead to higher metal production rates. That's a very powerful combination.
Hidden away in the 2016 accounts (regarding asset valuation) is a comment that a 5% improvement in the copper price increases the recoverable amount (of contained metal) by $18m.
It would be nice to see these comments directly from HGO (or published by an external analyst) but that may be wishful thinking.
Quarterly report, page-3
Add HGO (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
5.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $108.9M | |||
| Open | High | Low | Value | Volume |
| 5.5¢ | 5.5¢ | 5.4¢ | $75.96K | 1.393M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 9 | 1472431 | 5.4¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 5.6¢ | 793830 | 1 |
View Market Depth
| Last trade - 14.00pm 29/11/2024 (20 minute delay) ? |
| HGO (ASX) Chart |
