"we will resume quarterly reports"It seems you will be...

"we will resume quarterly reports"

It seems you will be disappointed. Monthly reporting stopped in June, the next thing we get is likely to be the Half yearly report.



Dividends:

Steady with the insults guys. Everyone is entitled to their opinions.

Both sides of the debate, together with management, it seems recognise that it is in shareholders best interest to have their plant running full.

Any considered analysis of the numbers will win the debate over whether dividends are possible in the near future.

The naysayers subjective opinions that dividends are not possible if management concentrates on filling the plant doesn't appear to be supported by the forecasts.

It took four years to get the plant running half full and will likely take another 4 years to get it running full. Management won't need anything like $400m or $500m that could flow from running half full to achieve that. $60m should more than cover it.

Not only is 50% of the earning capacity lost running the plant half full, circa $4m ( half the annual cost) is poured down the drain a year on care and maintenance and another $2m (half the annual) Corporate and Administration fixed overhead costs are reducing profits while the company is producing only half the time.

We can probably get a ballpark figure for how much capital will be needed to ramp up to running the plant full by looking at what it cost to get to half full.

Between June 20 and December 23 HGO lost $29m running the company and caring and maintaining the plant and equipment while not earning anything.
That is $8m a year.
During that period it spent $33m that is circa $10m a year discovering the resources doing the planning and developing the mine up to the point of first production..

It therefore looks like ramp up capital expenditure going forward will likely be of the order of $14m pa until the plant is running full.

With production forecasts and hedging that is in place cash flows in the next two years will be a large multiple of the $28m Cap ex needed to expand the operation on the journey to filling the plant.