Ann: Preliminary Final Report - Appendix 4E, page-4

The report shows the strain under which HGO management operated in the last few years and it's a relief to know that the improved performance which commenced in the month of December has continued into 2018. The forecasts for this year seem unduly conservative and I believe creditors will be back on normal terms well before the end of the year. On a simple basis a realised copper price of $US3.10 and cash costs of $US1.725 (mid-point) for 23,000 tonnes provides an annual cash flow of just over $A90m. Adjusting the figures in the "Expert's report" for lower tonnage/lower costs/lower royalties provides a lower figure of about $A75m. Either way there should be a substantial surplus by year end after allowance for payment of creditors and capex of up to $A55m.
The good news is that after 2018 this guidance would provide for about 16.000 tonnes of copper in mineable reserves and also:
"Planning is in progress and tenders are being evaluated for various stages of the Nugent underground activities.
In general, the successful delineation of the underground targets beneath and within the wall of the existing final Kanmantoo pit wall may result in a significant increase in mine life at Kanmantoo, made possible only by the utilisation of the substantial assets of the Company, the open pit Haul Road and the efficient processing plant."
The share price today may be more affected by the 2017 result but the future looks rosy.