HI Ksvs,
The book value in the balance sheet in the audited accounts takes into account all the contingent liabilities and assets.
"IAS 37 Provisions, Contingent Liabilities and Contingent Assets outlines the accounting for provisions (liabilities of uncertain timing or amount), together with contingent assets (possible assets) and contingent liabilities (possible obligations and present obligations that are not probable or not reliably measurable). Provisions are measured at the best estimate (including risks and uncertainties) of the expenditure required to settle the present obligation, and reflects the present value of expenditures required to settle the obligation where the time value of money is material."
There is of course bonanza potential which is not accounted for.All those "scratching the surface" exploration targets" that only cover a couple of hundred metres of depth in a few of the potential lodes that are known to go much deeper plus all the Square Kms of exploration leases that have massive potential for discoveries of eye watering magnitude are what dreams are made of.
Dreaming of filling the current plant with a long mine life is ,as they say, just scratching the surface.
Filling several plants would be a reasonable longer term strategic plan.
Once the cash is flowing freely and filling the war chest mergers and acquisitions with struggling players who are trading at a fraction of the book value of their quality assets and find themselves in the hands of a liquidator will be on the agenda.
Mining is as risky as any business venture can get which is why the potential for reward has to be so high to attract capital.HGO fortunately doesn't have any debt or associated covenants that could bring them undone prematurely if one of the many things that can go wrong, do go wrong.
The things that can go wrong given the depth of knowledge of the geology fall into the hic-up category and would just create a buying opportunity when the short sighted market that focuses on "the now "and ignores "the big picture future" smashes the share price down unmercifully.
(20min delay)