I would think operating costs last qtr were just below revenue of A$35.2m, saved by December !!. What I liked (even though copper price may go up further) is that they have effectively locked in the next 6 months revenue at A$8740 per tonne or say A$105m excluding gold sales of approx. A$2.5m. I am happy with that and if they can keep costs around current numbers then we may see positive cashflow of A$30m on my small envelope numbers. I note the companies comments on higher electricity and freight costs may bite into this number. No estimation on capex or exploration provided but obviously some will be spent, along with some creditor and deferred salary payments.... so could we have $10 - 15m more in the bank by 30/6/18 ?
Looking forward to the company update at end of February when we may get some clarity on these numbers.... in the interim, please DYOR. Happy to hear other thoughts if you disagree.
HGO Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
