HGO hillgrove resources limited

Guess this upcoming quarterly profit, page-9

  1. 2,668 Posts.
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    I remember a comment "all we have to do is send it 75km down the road to the port and we get paid."
    So I am figuring the bulking and final shipping and destination are the responsibility of the trader with payments based on provisional tons delivered at date of delivery.
    Reconciled in later months for overs and unders in tons and credits.
    Otherwise operations would have ceased by now through lack of funds.
    I would also assume everything is going to the hedge as per the ramp up schedule shown in presentations with Junes production being 200t higher than planned due to 20% higher grade hit also as mentioned in presentations and commentary.
    I think they were likely a little slow with their initial ramp up so although 200T extra production in June would guess that makes them now square some what with hedge commitments and planned production to date.

    Mays comment that expect cash flow positive and last QTRLY's comments over future funding requirements indicate around 750-800 tons is break even for the current overall scale of operations with an apparent 5kt increase in ore target per month ramp up at the moment.
    June's production was meant to step back to around Aprils from prior presentations as a new drive was undertaken.
    Was there a temporary change of mine plan due to a grade sugar hit?
    No tons mentioned on those charts,so you have to do a bit of a guess.

    I would call the QTRLY break even on a cash flow basis with any extra available being spent on growing ore access or bringing any outstanding payments to suppliers up to date.

    Regards

 
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