PHES, page-5

HI, O

You bring back memories of that great "Story of O"

You need to read the despatches regarding the PHES (No not the story of O).

The easiest way to find them is on HGO's website in Investor Relations. Sorry I can't copy the link for you.

Theres a presentation or anouncement called "Kanmantoo Pumped Hydro"

In there you will find the following, amongst a lot of other stuff.

"there is an opportunity at the end of pit life to establish a Pumped Hydro, which is an enabler as a one off value generator, revenue stream or combination; IT IS NOT CORE BUSINESS"

SO the only capital cost is the studies that have for the most part been completed and the tender process which is about to get underway.

Three options for return to shareholders.

(1) Up front payment

(2) recurring income stream.

(3) a mixture of both


The cash up front would logically be the best option but as the Share Market is crazy the recurring income stream would be valued at a ridiculous ratio to share price and be the best option for those with a short term view.