Ann: Quarterly Activities and Cashflow Report , page-16

Micar and Noobie, I think you're on the money. Scorp - the price may drop in the short term but this is most likely to be a reflection of broader market sentiment. HGO like the vast majority is not immune to these factors. Either one quits the market and takes losses at the current prices ( and its anyone's guess to say whether this would prove the right move now) or hold on to emerging junior stocks with a foundation for near term growth. I suppose, as always, it comes down to the individuals level of comfort in their investment. I for one, am yet to hit the pannic button on HGO ( despite holding at well north of current SP). I too think there is more to come, and the current management do not report to "satisfy the market" but play the straight bat.
A little more detail on the Fat Prophet 30thMay recommendation-
" During ramp up phase, the procesing circuit has operated to planned spec's. Equipment failure that has occured has been rectified, including the crushing circuit with only minor impacts on copper production. Some redesign work will be necessary to improve performance.
There was also reference to the favourable copper hedge for 50-55% of production over the next 41 months.
Resource extension drilling has been focused on the Emily Star prospect and - "The best of the results was KTRC861 which intersected 36 metres showing0.81% copper from 75 metres and included a sweet spot of 21 metres showing 1.22% from 79 metres . GIVEN THE LOCATION OF EMILY STAR PROSPECT, THESE ARE SIGNIFICANT RESULTS.. Exploration will continue at Emily Star with an aim to join mineralistion to the main Kanmantoo pit. There certainly appears to be blue sky potential around the Emily Star prospect."
" It is hard to berlieve that the Kanmantoo mine is only 55 Kilometres from Adelaide and has available all the required infrastructure and workforce at its fingertips."

We contine to view HGO as an undervalued stock as it transitions to an emerging Cu producer. We are of the opinion that successful exploration will deliver extensions to the Kanmantoo mine plus upgrades to its Cu resource. these factors and the revenue stream from Cu concentrate sales will be positive near term catalysts for the share price.
With the above in mind, we continue to recommend HGO a BUY.

As always we all need to make up our own mind on such reports -
sorry about the long post, FOYT