Gold production doubles, page-2

The PHES is worth quite a bit once up and running - but remember we are only providing the site and there are substantial development costs in buying the pumping and generation equipment and getting set up.

If we get a PHES valuation around 250M, I would have thought HGO should be able to sell the site the lions share of what' left after the development and set up costs are taken out. What that is, who knows, but probably nothing like the 250M.

For me a sale of the site is the best option as holders have been long suffering with HGO and I think we deserve something more immediate than a stream of royalties in exchange for the site, beginning some time into the future. The decision to abandon the sale and move to underground mining will also likely delay a decent pay day for holders in the short term.

HGO holders have not been well treated by the company and despite years to deliver, most of HGO's initial capital which came from the sale of gas assets to Santos has been squandered. Taking an extra year to get (initial) mining underway and terrible decisions re initially outsourcing mining and then having to update the crusher shortly after mining began blew start up costs off the chart. The result of these disasters was that we ended up with too much debt and have been behind the 8 ball ever since. In order to survive they have scratched along on the proceeds of hedging, as well as leaning on creditors, employees, governments and anybody else they could find. The sp is now a fraction of what I paid for my first parcel.

In the end if holders are expected to continue to provide capital we need to get a ROI.

I call on management to 

1. Sell the site for the PHES and payout the proceeds.

2. Show us good evidence of the economics of the "company transforming mining project" described in their presentations which will support the sp post divy.

Some will say "you don't want much" - to which I say "its time"