I had to look that one up.Rich of any category is good. New or...

The interesting thing about HGO is the massive size of the exploration targets and extent of unexplored exploration leases.

The current plant can process circa 3.46mt at a cut off grade of 0.4% to produce circa 27.5 kt of Cu pa.

Production drops as grade rises to circa 2.5mt at a grade of 2%. which would produce circa 46.5kt of cu pa.

I had to look that one up.

Rich of any category is good. New or old who gives a rats.

Dreaming about how big a pile of dollars one's bucket full of HGO shares will snare is often on my mind.

Worth redoing the figures given the jump in prices.

With the plant is running full and exploration success extending the mine life off over the Horizon I have been wondering what decision the board will make when they have enough resources to either:-

(A) run the plant full processing 2.5m t of ore at 2% Cu grade to produce 46,500t of copper /annum at ES2 study forecast cost which would deliver an ASIC of $5.122/t but would likely increase with higher mine development costs if only the higher grade cores are mined to circa $6100/t of cu produced. At a cu price of $14,122 that would deliver annual free cash flow of Circa $418m. and NPAT of circa $290m.

At a PER of 15 that would deliver a share price of $1.97

or

(B) drop the cut off grade to 0.4 % and process circa 3.46mt of ore to produce 27.5kt of cu at an ES2 cost forecast ASIC of $8092/t of cu produced would deliver free cash flow of $165m and NPAT of circa of $112m .

At a PER of 15 that would deliver a Sp of a modest 76c.

There is always more to dream about.

With the current plant operating at capacity with a 30yr mine life ahead of it there will be enough cash to fully explore the leases to the North and the SE and fund another couple of plants to make us poor punters seriously rich.