HIG highlands pacific limited

Nickel price on LME has had a great week ending Friday's session...

  1. 11,493 Posts.
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    Nickel price on LME has had a great week ending Friday's session at $US11630/t and Cobalt price is currently $US59750/t. Our 8.56% share of Gross Annual Revenue(based on these metal prices) and production of 36kt Ni and 3.5k Co(based on June quarter production rates) is now over $US53mil.
    The June half yearly accounts show that our share of Ramu's production costs were $US10.14mil(Pg11 Note 5(ii)) so around $US20mil per annum.
    So if current metal prices can hold, then Ramu will be earning us $US33mil per annum going forward, that will initially be paying down our debt of $US128mil owed to the Chinese that accrues interest at the rate of around 5%pa or $6.5mil/pa which will rapidly decrease with the balance owing - the loan should be paid off in 4.5 years given the above figures. And when that happens our interest in Ramu goes to 11.3% and then we would be earning $US43.5mil per annum given today's metal prices.
    Mine life is 15 years(minimum).
    Meanwhile our market capitalization is $A58mil($US45mil).
 
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