Another Day Another New Low !, page-9

To say you are wrong is an understatement! I really like it when people put generic statements out there without really knowing what they're talking about! Yes the copper price is falling! Yes copper companies will start shutting down if prices keep falling! HGO are actually hedged until December 2017 at AUD $3.52lb so falling copper prices should not effect HGO anywhere near as much as other non hedged producers! Show me a copper miner that is producing at a profit, is fully hedged, has a four year mine life and working on pushing it out to 7 years that has a market cap of $31M after having lost 75% of its value in less than 12 months that management are not at fault! The reality is, the market believes that HGO are burning far more cash than they forecast for the Giant Pit cut back and management has added to these fears by not announcing otherwise! Brokers have HGO pumping out twice its current market cap in free cash flow from Jan 2017 and noting that the market is forward looking then that value should be starting to appear in the share price. The end of the world proclamations has only been out there for the last month or so and HGO has been falling for umpteen years! The bottom line is management have a history of saying everything is rosy and then quick as a flash hit the market with a capital raising. What could management do to turn around HGO's under performance in comparison to its peers? One simple announcement stating that the giant pit cut back is on time and budget and that cash on hand is sufficient to complete the giant pit cut back. It's not rocket science, but the way management are running the company you would think it was. My thoughts are that HGO, once it gets its next mining licence extension sack the chairman and get someone who will be up front with investors. Having an ex politician whom by their very nature thrive on keeping people in the dark is a bad move for HGO. The only worth I see for having him as chairman is his contacts in the SA government which could assist with licence extension.