Maybe Lachlan's reluctance could follow a look around at the current world scene.
US may slip into recession mid 2023 The war in Ukraine The threat by China against Taiwan, North Korea firing missiles. Europe and GB facing a dangerous Winter with the indecent haste towards renewables, forcing Germany to reopen 27 coal fired power stations and two nuclear plants. Chinese economy drifting towards a war footing as a distraction to the Property market disaster there and growing unrest towards the government. These and other issues such as Covid may be the catalyst for a nationalistic call to focus on the enemy without, rather than the enemy within. The Australian economy is under threat with the anti mining sentiment growing and the undue haste by our Labor/Greens Government towards renewable energy which will inevitably result in blackouts and reduced economic activity if the stated plan is implemented in the planned timeline without necessary backup baseload power. Surely the German experience must ring alarm bells. The banking sector is nervous with interest rates still rising and the high exposure to the property market. Household reserves are dwindling after the indecent cash splash of the last two years and will end in many mortgage defaults.
To counter this gloom, China has effectively announced a reopening (or maybe just another way to share Covid) which should, if only temporarily, result in the demand for more raw materials. In the end, the only real catalyst for demand is world growth and this will occur when major economies digest massive debts and common sense is restored with the rejection of extreme woke agendas which have invaded even our most respected companies and governments worldwide except the likes of China, Russia etc.
Looking at the big picture and barring unforeseen disasters, of which there are many in the world outlook, I imagine that Hillgrove may be able to start production in mid to late 2023. Clearly this raises the question of how we are going to finance ongoing outgoings until then. Lachlan surely needs to enunciate a plan, a Capital Raising or more from Freepoint or something else.
Other than The Noosa Conference, the 24/10 Quarterly is the last word from Lachlan.
From Quarterly 24/10 Despite the project economics remaining robust, the decline in copper price has impacted project financing and the ability to hedge forward production. We remain engaged in discussions to complete project financing, however the realisable copper price remains a material consideration in any investment decision. Over the medium term, we remain bullish on copper price noting that the fundamentals are relatively unchanged, with the supply side still tight with low stockpiles and declining global head grades, whilst copper will still be essential to facilitate the transition to a lower carbon future.
HGO Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
