I have only very recently bought a small parcel of shares in HGO, so excuse my ignorance if my numbers are off target, or I am not fully informed -
Looking at the 1/2 year report, factoring a longer term AIC at $3lb and a sale price of $4lb (post current hedges) , it seems to me that that at these number they need to process around 1,000T of concentrate per month to break even (talking about Profit, which pays dividends, not EBIT or EBITDA).
Going back to a presentation from February, they stated that in stage one they had 44kt to mine over 4 years - which is about 1000t per month, which would basically mean break even? (I see posts here talking about 1,400t~1,500t pm, which would be quite profitable, but no reference to such tonnage in asx releases?)
Yes, the plant has lots more capacity, but are all future profits reliant on (a) price of copper increasing? (b) increased tonnage via yet to be confirmed discoveries?
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