Ann: RIU Conference Presentation, page-24

@ToastBox I recently bought into HGO. I almost bought a year or so ago when they were raising capital for the underground restart but tipped my money into CYM instead. I backed the wrong horse there.

Pros. Built and producing. No debt. exploration upside. Only utilizing 40% of processing plant capacity. Good recoveries. Leveraged to the price of copper. The project is based on the economics of feeding approx 1% grade ore into the processing plant, but at current prices and as copper price goes up, they can take ore from stopes from the lower grade halo that surrounds the high grade and feed that into the plant to generate more revenue.

Cons. Risks of underground. The current plan only includes four years of mining, so they need to keep rolling out the exploration and upgrade the resource to keep the market satisfied about the life of the operation.


TA. The chart is currently in a bullish flag formation and the price may potentially retrace to the 50 day moving average which is sitting fairly close to the 200 day.