i own hgo because i like money. end of story.

Consider the following:


1.HGO’s market cap is only $100milllion.

2.HGO owns ESG shares, worth around $70million, as well as shares in ITT, and cash etc.

3.This leaves the market valuing HGO’s Kanmantoo mine at around $30million. BUT, pre-feasibility valued it at $134million (after capital costs) and up to $216 million! This was BEFORE the last two reserve upgrades!

4.Another way to value this mine may be to compare with peers: HGO’s Kanmanto contains 290,000t copper and 216,900oz of gold. Copperco’s resource contains 272,100t copper (July quarterly report). Copperco ($522mil mkt cap) is currently trading on around $2600 per contained tonne of copper. HGO's Kanmantoo is currently trading on around only $100/tonne copper! AND it has all that gold (and garnett).

5.Kanmantoo is less than 60km from Adelaide, with existing infrastructure. Ie it will be a low cost operation.

6.Nearby is HGO’s Wheel Allen project, which is showing high grade gold, silver, zinc and lead (Rock chips up to 24g/t gold, 147g/t silver, 18% lead and 21% zinc). More drill results are due any day now.

7.HGO also has a 20% interest in the Alford project, which is targeting Olympic Dam style mineralization in the Gawler Craton.

8.And what about the Eastern Star Gas (ESG) holding (HGO 30%)? Other coal seam gas players are trading around $1.5million per PJ. ESG are aiming for 200PJ by year end, indicating a $300m Market cap (around current levels). But, the size of the gas field is up to 17000PJ's, so value in ground potentially $25.5 BILLION ! !


It seems to me that anyone who doesn’t own HGO does not like money!

naturally, this is my view, not advice. do your own research...