Ann: Additional Information - Quarterly Activities Report, page-46

Hi curiouswon

I agree with your comments and I share your confidence.

If HGO does in fact resume production (as I think is likely), and if it does so profitably (which I think is also likely), it will eventually be in a position to pay dividends. HGO's carried forward tax loses of $190M and franking credits of $17.6M are huge bonuses. The franking credits will enable the company to pay fully franked dividends of well over $50M, as Lachlan said in his recent presentation at Noosa. Assuming no further capital raisings, that will equate to total dividends of more than 4 cents per share. That makes today's closing price of 5.2 cents per share look cheap in my view.