Ann: Continued Ramp Up In Production at Kanmantoo, page-21

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VYR

4,428 Posts.

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04/05/24

19:51

Post #: 73667485
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Originally posted by HIO: ↑

Thanks VYR for your efforts.
There are many options and I dare say HGO will deploy a combination of all grade and throughput scenarios. Income will effectively be tax free for a couple of years due CF losses. Based on the 2.7 cps case and a PE of 5 we should see a SP of around 13cents. Given a more likely doubling of that in years 3 and 4, the SP should then be 26cents and this would improve with a PE of say 10 to 52cents once mine longevity is established. The further upside is still there with probable Cu price increases. This is a very superficial analysis and the combinations are immense. We appear to have a very nimble mining plan and a great mining team to make it all work.
I was talking to a very experienced miner today who has invested considerably in HGO. He was happy with the announcement today as HGO has been mining Resources and not proven Reserves and the announcement showed the mining head grades are coming in as planned.

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Very quite on the forum.

There certainly are a lot of grade and through put options.

Thought you might like to have a crack at the share price forecast if they can throw off operating cash flow of 12.2c a share running the plant full at ES grades while recovering 85% of the gold at todays prices, using ES costs escalated 5 %.

A bit of that cash flow would be zapped by non operating costs and a wack by tax so NPAT of circa 8 c /share . It would be great to see that trade on a decent PER.

It will be good when we get the next update as a miner to confirm where costs are sitting.

HGO Price at posting: 7.5¢ Sentiment: Hold Disclosure: Held
3 Upvote

2 Great analysis

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