Quite right. Better plant utilisation will reduce costs. It is exciting to see the Nugent drilling giving such positive results, which are open at depth.
Keep in mind that more ore will still be flowing from the existing Kavanagh operation, but Nugent is a nice increase.
Ultimately we remain relatively high cost, probably even after the plant is full, so we will still rise or fall with the copper price. So we are still dependent on the ongoing electrification of the world to continue or increase if we are to get a rise in the sp large enough to make a difference in our lives.
Historically speaking, the open pit suffered badly from low cu prices. Apart from the first year when cu prices were high, the open pit spent much of its time in marginal territory or under water. Only a good hedge book saved the day after a massive plunge in the cu price occurred and HGO cashed out its hedges to pay off its loan.
I look regularly at the CU futures contracts. If it heads south, we would be in all sorts of strife.
HGO Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)