HGO

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6.1¢ hillgrove resources limited

Ann: $6m Funding Agreement For The Sale of Kanmantoo Royalty, page-88

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curiouswon

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29/08/22

18:07

Post #: 63389868
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Originally posted by iainspittal: ↑

Hi all

Interesting development today and we shall see how it plays out.

If I'm right in my calculations, HGO will need to derive income of $240m in order for Freepoint to earn its $6m. That seems to me to be a massive vote of confidence from Freepoint that HGO will deliver a significant project and, if so, will be great news for shareholders.

If HGO makes nothing from the project (or something less than $240m) then Freepoint won't get all its funds back which is very different to a loan arrangement. The downside is an ongoing potential future return for Freepoint if the project continues to deliver value for shareholders but that seems a reasoanble swap in the circumstances given the potential upside for shareholders as noted by Veritas.

To my mind, HGO has effectively raised capital at a significant premium to today's current value.

I'm sure the reality is that funding has dried up for many parties (not just HGO) in the current market given the risk appetite of lenders has fallen considerably, coupled with the recent copper price falls (temporary in my view). Perhaps management could explain this better but it seems like a pretty good outcome to me.

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Dear Mr @iainspittal - I am giving you a "Great Analysis" and an "Upvote" for your first-ever post on HotCopper.
I note that you say you are a Holder of HGO - Should you wish to tell us when and how and why you were attracted to HGO ownership, then I for one would be interested.
good luck

HGO Price at posting: 4.2¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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(20min delay)
Last 6.1¢		Change 0.000(0.00%)		Mkt cap ! $127.8M

Open	High	Low	Value	Volume
5.9¢	6.1¢	5.8¢	$339.2K	5.792M

Buyers (Bids)

No.	Vol.	Price($)
2	103904	6.0¢

Sellers (Offers)

Price($)	Vol.	No.
6.1¢	168658	2

View Market Depth

No.	Vol.	Price($)
2	103904	0.060
1	10000	0.059
6	513255	0.058
10	858277	0.057
9	654731	0.056

Price($)	Vol.	No.
0.061	168658	2
0.062	140000	1
0.063	260829	2
0.064	1105569	1
0.065	148942	4

Last trade - 16.10pm 02/08/2024 (20 minute delay)

HGO (ASX) Chart

Ann: $6m Funding Agreement For The Sale of Kanmantoo Royalty, page-88

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Venture to sniff out high-grade REE targets at Jupiter project, WA

GreenX picks up prospective copper project in Germany

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Westgold sets its sights on top five producer status through merger with Karora

Is oil undervalued?

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: $6m Funding Agreement For The Sale of Kanmantoo Royalty, page-88

Top Stories

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Venture to sniff out high-grade REE targets at Jupiter project, WA

GreenX picks up prospective copper project in Germany

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Westgold sets its sights on top five producer status through merger with Karora

Is oil undervalued?

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News