Fortunately the board and management are comprised of well qualified people who represent a lot of skin in the game and are therefore driven to make the most out of the resources ASAP.
Gone are the days when the major shareholder wanted their money back which resulted in a strategic plan that involved selling the pit and the UG mine potential and required management to find a JV Partner to fund any continuation of the mining operation.
Ariadne have had a change of heart and Freepoint have become the major shareholder.
We now have a major shareholder who:
* are experts in the copper mining business and funding projects. * they have very deep pockets and * also owns a royalty stream and a take off agreement which gives them massive incentive to make the most of the opportunity that HGO presents.
I'm inclined to think that the new director that was appointed to sit beside Ariadne's man is a Freepoint nominee and that he has riding instructions to drive the business as hard as it can be driven with the knowledge that deep pockets are there if funding support is required to get the best outcome from the royalty agreement, the takeoff agreement and the equity holding.
Lachlan hasn't presided over a fairy tale ES it seems and all is going to plan.
IMO Lachlan and the team need to focus all their time on executing the mine plan and getting the Revenues flowing. Trying to raise debt funding before the runs are on the board would be a distraction and difficult to impossible .
When the cash starts flowing in a few weeks time we won't need debt. as cash will be abundant. The big challenge will be mustering the competent resources to put it to work effectively.
Doing less with a very competent team and distributing a decent portion of the surplus cash could be the best result all round.
HGO Price at posting:
7.3¢ Sentiment: None Disclosure: Held
