Lash the eastern victorian goldfields are nothing like WA and this is where the problem lies! You only need to go through the MCO, HEG, and GDR/ORN websites to see that.
As far as operating cash costs go it was approx 4.50USD a lb or approx $10000usd a tonne which when bhp pulled out of ravensthorpe and vale out of the knp the spot price was below this or just above so it was a marginal operation and not worth the capex spend.
Now the price for the past 2 months has been north of 15000USD and the oil price has dropped the operating profit numbers start looking alot better and worth the capex spend! I think for going forward it is worth viewing the USD and AUD as parity for any calculations as it is more likely to be parity than the 75USD number being used in past calcs.
Lets hope for a big 2010 for Heron especially from the chinese as this is the only place i can see where we are going to get SP appreciation outside a large sulphide find.
HRR Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
