Ann: RIU Conference Presentation, page-54

A couple of observations from the presentation.

Dividends:

One of the headline selling points in Lachlans sales pitches for some time has been the first $250m of profit will be tax free but HGO does have $17.6m of franking credits to pay a $50m dividend franked @25%

2.5 c a share is a small part of the free cash flow thats forecast but a very nice dividend on 6.8c. With many more to come.




Ramp up:

The presentation also tells us that June and July plant throughput is forecast to be a bit lower than May. It doesn't give a feed grade forecast so not much in terms of copper production can be drawn from that.



Lowering the cut off grade:

It also gives us the heads up on how lowering the cut off grade will affect the feed grade and quantities of ore mined.

At a 0.6% cut off the old MRE that was used in the EA had 5.7mt at 1.1% cu

Dropping the cut off grade to 0.4% increases the tonnage to 9.3mt at 0.9% cu

Thats a 63% increase.

So we could see annual through put rise from 1.4m tonnes to 2.282 mt



The numbers:

For those interested in numbers my spread sheet has three sections so I can determine the cu price that is needed to lower the cut off grade to 0.5% and 0.4%.

When I get a chance I will see what dropping the cut off grade does to cash flow. 2.3mt is more than 50% capacity so they would have to operate the processing plant 9 days on and 5 days off to process that quantity of lower grades.