A couple of observations from the presentation.
Dividends:
One of the headline selling points in Lachlans sales pitches for some time has been the first $250m of profit will be tax free but HGO does have $17.6m of franking credits to pay a $50m dividend franked @25%
2.5 c a share is a small part of the free cash flow thats forecast but a very nice dividend on 6.8c. With many more to come.
Ramp up:
The presentation also tells us that June and July plant throughput is forecast to be a bit lower than May. It doesn't give a feed grade forecast so not much in terms of copper production can be drawn from that.
Lowering the cut off grade:
It also gives us the heads up on how lowering the cut off grade will affect the feed grade and quantities of ore mined.
At a 0.6% cut off the old MRE that was used in the EA had 5.7mt at 1.1% cu
Dropping the cut off grade to 0.4% increases the tonnage to 9.3mt at 0.9% cu
Thats a 63% increase.
So we could see annual through put rise from 1.4m tonnes to 2.282 mt
The numbers:
For those interested in numbers my spread sheet has three sections so I can determine the cu price that is needed to lower the cut off grade to 0.5% and 0.4%.
When I get a chance I will see what dropping the cut off grade does to cash flow. 2.3mt is more than 50% capacity so they would have to operate the processing plant 9 days on and 5 days off to process that quantity of lower grades.
- Forums
- ASX - By Stock
- Ann: RIU Conference Presentation
A couple of observations from the presentation.Dividends:One of...
-
- There are more pages in this discussion • 34 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add HGO (ASX) to my watchlist
(20min delay)
|
|||||
Last
6.3¢ |
Change
0.002(3.28%) |
Mkt cap ! $127.8M |
Open | High | Low | Value | Volume |
6.0¢ | 6.3¢ | 5.9¢ | $71.68K | 1.186M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 21012 | 6.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
6.3¢ | 174954 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 46 | 0.065 |
1 | 21012 | 0.060 |
4 | 318628 | 0.059 |
1 | 340000 | 0.058 |
1 | 372000 | 0.057 |
Price($) | Vol. | No. |
---|---|---|
0.063 | 175000 | 2 |
0.064 | 885266 | 3 |
0.065 | 644913 | 4 |
0.066 | 30000 | 1 |
0.067 | 44940 | 2 |
Last trade - 16.10pm 09/10/2024 (20 minute delay) ? |
Featured News
HGO (ASX) Chart |
The Watchlist
AHK
ARK MINES LIMITED
Ben Emery, Executive Director
Ben Emery
Executive Director
SPONSORED BY The Market Online