SVY back near its lows:Simply confirms that the market is in a...

SVY back near its lows:

Simply confirms that the market is in a risk off cycle and resources that don't have a clear and defined pathway to positive cash flow sufficient to pay back the pre-production and mine development capital expenditure in a short time and deliver a risk weighted return aren't attracting market interest.

HGO struggled to get funding of $26m with a 6 month pay back to develop the UG in spite of the fact that it not only had the resources, it also had a ready to go fully owned processing plant, a tailings dam with spare capacity, a shed full of spare parts etc etc.

The existing shareholders of an explorer with only enough cash to pay the wages for 6 months and a pile of resources are on a beating to nothing at the moment.

New Mine development:

Developing new mines is only possible for companies like producing miners or end users of the products who have strong cash flows from their other operations to service the pre-production, and mine development capital expenditure.

Hgo is working towards filling the 3.6mt plant and generating a couple of hundred million a year so its plan to become a multi mine business has legs IMO.