From my rough calculations there will be 1.829 billion shares on offer after the CR. With an estimated $205m after tax income over 45 months - approx $55 pa., that works out at 3 cps. That is a pretty good return or a pe of 2. There should be no reason that, once revenue is underway, HGO could comfortably pay 1.5 cps as a ff dividend pa. There is no payback to a third party as HGO will be debt free and hopefully in a space where the commodity price is rising. The new plan gets us into production. We are raising a measly $35m to move to almost immediate production - owning the lot - $200m + plant, a working mine with proven reserves and future opportunities to keep us in production for many years to come. Just on a pe of a pathetic 5 the share price would be 15cps. This to me looks like a brilliant opportunity.
HGO Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
