copper price, page-32

Thanks Foyt,

We certainly have a lean mean mining machine that was necessarily trimmed to the bone in early 16 when the copper price dropped below $2 and we were so close to going belly up. Management certainly deserve accolades and financial rewards for their efforts gaining the support of staff and contractors to get HGO through those hard times. The positions that they have taken on hedging have been unbelievably intuitive and enormously successful.


Having analysed the numbers in the expert valuation and particularly the huge drop in revenue from $228m in 2018 to $106m in 2019 driven solely by a drop in feed grade from 82% to 37% I have come to realise why I lost so much on Iron Ore when I invested in companies with low grades.

Which leads me to think that the sooner we start to mine elsewhere and supplement those lower grade stockpiles with higher grade feed stock the better.

With our lean and successful management team and the MD of Greshams (who has a very large personal shareholding) on the board, promising potential gold and copper resources , and a PHES potential project with a capital cost $225m less than industry average the sky could be the limit for HGO.