Ann: Drilling Update for Kanmantoo, page-34

I hope that works out well for you.

I'm not sure if you are aware but when HGO raised 3 cents a share to complete the giant pit in dec 2016 they went on to pay a 1.5 cent dividend franked up to 2.14 cents in June 18. The mining cost blew out after that and left a big hole in the forecast earnings. Fortunately a big hole was also left in the ground which seems to have a value of circa $30m.

Could 2022/23 be the year that the latest 3.1 c starts paying big dividends. The $112m in tax losses and $17.5m in franking credit balances adds a very thick layer of cream to the pie that hopefully will be returned to shareholders after holding back enough to fund the exploration and studies needed to fill the plant and replenish resources as they are depleted.

Whilst I have had a fair bit of experience measuring pricing and managing projects none of them have been mining projects.

I have learn't a lot about the pit falls and bonanza profits that can come from investing in miners with quality assets when they are going through difficult times and the market exercises its skill at valuing very valuable things at next to nothing.

HGO has demonstrated that they are very good at estimating and controlling processing cost and predicting grades and recoveries. The exploration so far has uncovered excellent grades and the forecast prices for the next few years seem way to good to be true. Hopefully Lachlan will find a good mining contractor to work with in a contract where the contractor can earn a reasonable profit and benefits from us doing well but wears most of the pain if the budget isn't reliable.