agm wrap-up

These are the key highlights as I saw them at the AGM, sorry if they're a bit rough but i'm at work folks.


Kanamanto

JV was scrapped because of HGO share price rise and rising copper price (Dean Brown said after that 10 bids were received)

90% of the yallara plant is on site (not constructed), interestingly 50k worth of copper cable was stolen in Adelaide. Bastards!

Financing in next 2 weeks. They want 50 mil of the 104.7 cost of K. They have spent 14 mil to date

Mining contracts are soon to be announced then FID can be made


HGO will pursue further prudent price risk strategy for K product. DB said the hedging products bought are already 6 mil in the money. Their board meeting on ANZAC day apparently saved the company 2 mil (as this is what contracts would've cost the next day)

Drill results at K are currently known and are being analysed and included into reserve, unknown timing of release, They see a potential for underground mining at K

RSPT will cost K an extra 14 mil in tax over the life of the mine. They believe it will have minimal impact on the mine's NPV

Birds Head

There has been trouble at BH. work has been suspended until the locals work out who owns the land the HGO pay money too. Does not effect HGOs claim to mine the land.

Sumba:

Second higher capacity drill rig is currently being shipped. Seasonally unusually heavy rain has slowed progress. Ready for big exploration push. 3 4 geologists on site, searching for appropriate drill sites. Only one drill hole on highly prospective Western lode due to weather.

Corporate and miscellaneous.

Dividends were paid to reward investors

Intermet have acquired some bauxite tenements. They are planning to turn the company into a bulk commodity specialist. Paid 500k for tenements. Low silica levels a highlight

They believe ESG is not quite as prospective as once was (corporately) re RSPT

All resolutions were passed

The board has met 18 times in the last year

The buyback is driven solely because the board think that HGO is the best investment (near cash cited). It is not driven by threat of takeover. When talking to DB he did mention that there may not even be a buyback at all, i'd say if the sp keeps rising it will not happen.

DB said all directors participated in SPP even though they were out of the money

No directors have been selling - Dean Archer does transfer some stock to his super fund which can be perceived as selling

I'd also like to mention that it was well worth attending, the board and key employees made themselves freely available to the shareholders.

Again, sorry if it doesnt read well or make perfect sense but Ive already got to make up the time I spent at the AGM!