If I had to guess, I would say it is a flow on effect from BDG.
HIG's Kainantu operations has suffered from similar issues in the last 2 qtrs (lower grades than expected, and geologically more complex than expected). This is compounded by a hedgebook that they are trying to restructure (as ounces produced have been way short so far, and hedges at around $400 USD per ounce).
However, they have suggested recently to www.miningnews.net (in an audio interview during December) that they are close to producing at their expected rate of 110,000 ounces per annum. If this is the case....and this is a big if...then this would potentially be a great buying opportunity assuming the hedgebook restructuring occurs as expected.
I am a holder....so DYOR
HIG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held