HGO - Chart, page-377

Thanks @VYR you really have kicked the old dog (Nifty) in the guts.

HGO seems now to be on a highway to filling the mill and paying dividends. HGO is now cashflow positive and is really a beautiful landscape for Bob the builder to parachute into.

CYM, as you point out, has many hurdles to jump and many of them hurdles are very significant BUT fortunately copper is in demand and will be for the foreseeable future and costs are huge for greenfield developments at present hence the team at CYM (Milan Jerk.. has been moved aside as per ann 6/6/24) have a great opportunity to utilise the sunk capital at Nifty.

Just some short points: (being a HGO thread)

The Waste you refer to, I expect to be mostly treated through the SX-EW plant but was treated as waste for the open pit scoping study

The original restart study utilising only 10% of the resource had a NPV of $277mAUD, with current Cu price and FX that is now $440m

I expect the operation of the SX-EW to provide the FCF to dig down to the Sulphide of the open pit scoping study BUT to that they will need $200m AUD for
the SX-EW capex.........hence the open pit study was done to provide a business case with a long mine life, proving the SX-EW capex is justified given the NPV of the open pit is $880m AUD. This is based on a discussion with Clive Donner at last year's Noosa Mining Conference.

The current mine plan at Kanmantoo has a NPV of $166m AUD (using parameters from Feb 2023) and HGO MC is presently $143m, this quarter we are expecting an update to our MRE which will automatically rerate our project NPV and hence the SP will follow.

Throw some figures at CYM. open pit NPV $880m plus SX-EW NPV $440m and they currently have a market cap of $78m. The punters are firmly of the belief this dog is indeed never going to run again but the private equity financing the studies and holding over 50% of the registry think otherwise.

@VYR , Thanks for your detailed response, it has now stopped raining and I need to get back into landscaping.......