re: Ann: Kanmantoo Construction and Commissio...
HGO seem intent to keep a lot of cash in reserve.
From the last quarterly activities report "Cash on hand as at 31 July 2011 was AUD 55.3 million, together with undrawn debt facilities of AUD 18.0 million, compare favourably with the estimated remaining cost to complete Kanmantoo of AUD 20 million."
They appear to want to only use debt to finance the rest of Kanmantoo and hold on to their cash. Of course they are now $10 million short of doing this but are still talking about how they are going to cover this.
Leaves me wondering why they want so much cash up their sleaves when we should have a healthy and predictable income shortly. Cant be all for a rainy day.
Aquisitions? Insurance against take over?
HGO Price at posting:
23.0¢ Sentiment: ST Buy Disclosure: Held
