The turning point between development and profitable production has now been reached: "A net cash inflow from operating activities of $21.0 million was generated for the year. While the mine continued to ramp up to its planned capacity of 1.4 million tonnes per annum (“Mtpa”), there were cash outflows of $32.0 million from investments in exploration, mine development and infrastructure as well as plant and equipment." Some balance sheet repair is still needed but looking forward: "As we move to our first full year of production, I am confident we will continue to further improve our financial performance and strengthen our balance sheet". The fact that there is cash on the balnce sheet ($3.3m) and an unused line of credit ($10m) is testimony to the strength of management which should now bear fruits for investors. Any share price weakness which may follow this report will be an excellent buying opportunity.
HGO Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
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