In terms of the worries about having to raise a large amount at these very low prices. I note that a lot of the money spend has been to acquire Starlights 6% stake (3M in the June Qtr) and exploration.
They have paid the last $2M installed in the September quarter and I assume all drilling/exploration works have been done and halted. I also assume they will slow down spending on the BFS significantly.
So from about 8M we might now be down to something like $4M? That takes into account $2M paid to Starlight, $550K operating cost and nearly $1.4M for the last bits of drilling and spending on the BFS?
However they could go to $550K operating cost per quarter which means they still could go for quite while.
Even so I think a relatively small raise of say $5 to $10M might be prudent so they can hold out for a long period if needed and possibly continue and finish the BFS so that it is all ready to go when things improve. I certainly see no need nor do I expect a large cash raise now as some of the non holding fear mongeres are suggesting. What would they need that cash for?
And a cash burn of $550K is really quite comfortable! I just wish they had done a raise in the last few months, but that would have been them breaking their word and I understand they didn't want to do that. Honesty is best policy in this business, and anyone actually following HIO and looking at in a genuine way can see they have been nothing but straight forward.
Wath are other people's thoughts on the cash situation?
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