I agree with some aspects of previous posts. HIG had another...

I agree with some aspects of previous posts. HIG had another shocker of a quarter in Dec. But, HIG do have US$16m in cash, and the funds should suffice to see Kainantu into profitability. If you look at the gold production in the December and September quarter 6,225oz and 8,015oz, and production costs US$6.6m, or US$1064/oz, with a net mine operating deficit of US$3.7 mil reported, then after repayment of US$2.5m, which reduces the project debt to US$24.8m, HIG reported cash of US$16.6m as at 31 December. With HIG's free-carried 8.56% interest in the Ramu nickel project development, and Xstrata exercising it's option which will give HIG a free-carried interest of 16.22% through bankable feasibility in the Freida River copper-gold project, HIG has the funds to see Kainantu into full production despite the slow start.

Yes the Hedge book must be revised. That is crucial. In saying that, they are capable of producing gold at a good margin.