Luke was already being consulted when last years audit was happening so I agree with your sentiment about better presentation unfortunately. Another big hit to profit when the results of the expansion drilling program is converted to resources will be a bitter pill to swallow unless Luke surprises in a positive way. He is certainly being presented with the opportunity to tidy up the balance sheet to his liking in the up comming half year accounts
When i spoke to the auditor he told me Freepoint didn't treat the transaction the same way HGO does. Their accounts report the $6m they paid as an asset and the royalties as revenue when they receive them. They would have made a tidy capital gain when they sold to the new owners. Its unusual for two sides of a transaction to account for it differently given the different tax outcomes.
I'm looking forward to waking up one morning soon to news that my HGO holdings are finally on free carry, a bucket list car is sitting in the old garage and my little wine store is full of the good stuff.
I don't care whether that comes from a couple of dividends or reluctantly selling a small percentage of the share pile at an enhanced capital gain due to investment of retained earnings in a bigger pie.
HGO Price at posting:
3.9¢ Sentiment: None Disclosure: Held
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