Ann: Silver Lake Completes Acquisition of Harte Gold, page-86

"Let's hope Harte's new shareholders do much better and it is not a financial graveyard."

It's worth remembering that in October 2018 when Harte poured its first gold, the spot price was a little over $US 1200/oz and its market cap was $C300m plus $US70m debt so EV around $A400m... at $1200/oz gold price!

After start-up issues associated with an unusually severe winter, Harte needed to restructure its debt a few months later in April 2019, requiring hedging at precisely the wrong time (~$1300/oz) before the gold price broke out mid 2019. Covid closed the mine for 3 months, travel restrictions and senior management living in the US unable to get to site, resigning.

Slow ramp up subsequently meant a large proportion of quarterly production was sold at the hedged price. Despite this, mine operating cash flow of $C13.7m was achieved in the Sept 2021 quarter, and Silver Lake has now closed what was left of this hedging for ~$US25m.