2017 Outlook

Here are some positives for HOR in 2017:

1. Copper Price is on the move - up over 25% in 6 weeks (see graph below) with LT positive outlook from many commentators.
AUD Copper price is about $7,800 ATM which matches HOR scoping study released back on 19/12/2014 (Case 1).


If it keeps moving north in AUD terms then Case 2 and maybe Case 3 of the scoping study come into play. The
study is worth a review as it was does not take into account:
a. SMART project (surface material retreatment) potential adds 9kt Cu and 16,000 oz Au to the economics (that's about $100M of metal sitting on the surface).
b. Increased resources from 2015 infill drilling programme (which still has 1200m to be drilled this quarter if you believe last qrly).  Anyhow the Mineral Resource should firm up nicely with some of those results from 2015, which will have a positive impact on Scoping Study.

2. MF interest in RNI must be based on broader strategy - he does not invest on a whim. I reckon he thinks RNI are onto HSL #2 at Forrest/Wodger which is just 25km away.  Treating RNI Cu/Au ore through a new plant at HSL will improve economics of HSL significantly. Don't be surprised if a HOR/RNI JV materialises if RNI drilling comes up trumps. HSL sits on a Mining Lease and has a tailings dam ready to go so there is appeal for RNI to get into production quickly by using the HSL site.

3. MF has had a busy year with GMM/GXY merger and getting EGS re-listed.  EGS still occupying most of his time as he attempts to raise debt finance for Davyhurst plant refurbishment. By March 2017 EGS should be close to production (optimistically I think) and when it does MF will then have time and cash to focus on his Cu/Au plays (HOR, PUN and RCP). HOR should be moving from a dead stop in 2016.

Anyhow fingers crossed for some good news in 2017.