Ann: Activity Report for Quarter Ended 30 September 2016-HGO.AX, page-4

So far it appears HGO has done well with the timing of unwinding its copper hedging. Picked the near low in the copper price to unwind the hedging and repay debt. Copper price has been rallying quite strongly.

Rough calcs on the timing are that HGO has probably banked up to extra $4m in cash than if it was to have unwound the hedging today.

If the current copper price holds through the first 6 months of 2017, assuming HGO produce 12000t of copper over the 9 month period to 30 June 2017, the kick in the copper price will add $10m- $11m to cashflow and this covers the cash shortfall they projected in their last quarterly. So, subject to the copper price, HGO seems to be on the verge of getting through its tight cashflow period.

Management have done a great job pulling off the restructuring.

If copper price continues to push up, then the situation for HGO will just get better.