Regis Resources’ (ASX: RRL) McPhillamys gold project in New South Wales, Australia, has lost almost all of its value due to the unexpected, but damaging environmental protection declaration issued last week by the federal government.
Sovereign risk is now well and truly on the agenda in Australia. With HGO a going concern and having achieved all Native Title approvals and having a great relationship with the local community and SA Government, our risk profile is one to be envied. It would be fair to say that anyone considering a future mine would be thinking twice.
HGO is now a working mine, no debt, reliable and cheap electricity supply, water supply, local workforce, close to export port with shareholder offtake partner (Freepoint) and a fully owned 3.6mt mill. This is "Goldilocks" territory.
Detractors can fiddle with Auditors Reports to derive the outcome they wish, but the facts are - HGO is operating profitably and increasing production. Once Reserves are increased and free cash flow facilitates increased exploration, the magnitude of this operation will be realised.
We cannot overestimate the value of a "Fully Permitted" going concern.
HGO Price at posting:
5.3¢ Sentiment: Hold Disclosure: Held
