Thats an astute view Allee. As you say cash is King and HGO don't have a cash pile to sit on. They need to start producing cash ASAP.
Current market conditions are certainly not in favour for miners who need to fund a greenfield project. Glad we haven't invested in that situation and own a massive plant debt free.
The whole thing about cu prices being down because of the fear of an inflation fuelled recession is as crazy as reasoning can get. Inflation means prices are going up, end of argument IMO.
Sure sentiment will prevail for a few months as it did after the GFC and the Pandemic meltdown in March 2020 but HGO will be busy developing the mine and not selling anything during that artificially depressed price period.
You maybe didn't experience the 1970's and 1980s which was when we post war baby boomers were getting ahead on the rising tide of inflation and high interest rates.
If you were able to get someone to lend you money to buy an asset you couldn't go wrong.
The governments of the day were supporting wages rising in line with inflation which sorted the interest payments out and a few years later the asset was worth way more than you paid for it so you could sell it, pay the bank back what you had borrowed interest only and pocket the capital gain.
Borrowing in a high inflationary environment provided you can comfortably service the debt is a massive wealth builder.
HGO Price at posting:
5.1¢ Sentiment: None Disclosure: Held
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