As several have noted its an Interesting report as HGO...

As several have noted its an Interesting report as HGO transitions from Explorer to Miner.

Summary.:

Important to remember that Cash flow reports only give punters a very rough idea of how long explorers cash balances are going to last and are basically hopeless in giving any meaningful information about passing profitability of a producer.

As expected the operational cash burn continued during the quarter with only 6 weeks production running the plant at a very low percentage of capacity.

Worth noting that the operational cash flow burn reduced from $4610 in the Dec 23 Q to $4038 in the March 24 Q as HGO passed the inflection point as it transitions to profitability. An important signal to those who watch these things closely which HIO draws attention to.


We seem to be well on track for a cash flow surplus to emerge from operations in the coming months.


I was hoping for a quarterly Miners Report but we are left to make what we can from what I hope is a final quarterly Explorers Cash Flow report. The last two slides I have attached show us the level of detail we will hopefully get from the next quarterly miners report.

Cash flow reports are pretty meaningless in terms of comparing revenues with costs as others have mentioned, due to the fact that revenues are received after costs have been incurred.

In the activities report we were told: Copper production increased from 239 tonnes in February to 589 tonnes in March.

So for the production costs they incurred they produced 828 tonnes of copper which they booked cash flow revenues of $9,540,000 which is only $11,522 a tonne c.f. the hedged price of $12,500 and much higher spot prices. Keep in mind also that there would have also been unearned revenue from precious metal content as Little Judy points out.


We also don't know how much ore they had in the stockpile and how much was sitting in the plant being processed as Polar2 Bear and what costs they had accrued but hadn't paid for .




Dilution is a necessary evil during the exploration stage of the journey and if all goes well HGO is well funded for the future rewards that are in the tea leaves for all those who have funded the journey thus far.