HIG (Highlands Pacific).Due to start production (fingures...

HIG (Highlands Pacific).


Due to start production (fingures crossed) within the next 12/15 months.

Est. production of between 120,000/150,000 ounces pa.

Est. cash costs per ounce US$110/120 = approx. A$200.

Est. revenue received per ounce sold (based on current spot) = A$630.

Est. cash flows before interest interest expenses and taxes = 130,000 x $A430 = $A55M.

Est. interest exp $A5M.

Est. tax expense in initial 2/3 years (benifit of tax losses) = $A0

Est. Free cash flows = $A50M pa.

Current market cap. = 330,000,000 shares x 34c = $A112M.



Est. free cash flow multiple of 2x.

Est. free cash flow multiple assuming 30% tax on income of 3x

Est mine life of 7 years + !!



See the value here..?! I'm assuming production of 130,000 pa, and a gold price of $A630 --- which i consider to be conservative.

I've also assumed no further upgrades to reserves in future.



There is a lot of value in HIG still...

I reckon it'll be one of the best performing goldies over the next 12/24 months.


I've got my money riding on it !!