HGO was valued so high as an explorer because of their great investments/holdings in other companies. You might remember those sweet announcements just a few short years ago ...
September 2009 Half Year Results headlines:
* Net Profit after Tax of $53.97 million for the six months ended 31 July 2009.
* Maiden dividend declared totalling 2 cents per ordinary share fully franked
* Cash of 127.5 million or 31 cents per share, and Net assets 35 cents per share
But HGO has cashed in on most of its investments to build Kanmantoo. So what is the company worth right now, if we start producing per current plan? A reasonable guess might be:
Starting with the Materials Sector average PE = 9 (Commsec). But having only a single mine & processing facility usually discounts for risk, so lets drop the target PE for HGO to 7.
Looking at the operating figures in the first post of this thread, lets say HGO gets everything running to plan and starts making $1M a month after tax. Looks reasonable at the moment. That's $12M profit a year, x PE of 7 gives fair value for the whole company at MCAP = $84M.
Current MCAP is $71M, not far off. So it looks like the current share price is already at about fair value, unless we see major improvements.
I'm sitting out until I see the next detailed company report. The operating cost has got to fall significantly, and I want to see higher-grade ore stock-piled as a buffer for wet weather. Plus I'd like to see that $3M a quarter burn rate on exploration costs scaled back, at least until the company no longer needs to dilute long-term holder's value with capital raisings.
If the company can push monthly profit up to $3M, we might see the SP back up in the 20-something cents where we were so recently.
Good luck to all holders in any case.
- Forums
- ASX - By Stock
- HGO
- the cold hard facts
HGO
hillgrove resources limited
Add to My Watchlist
0.00%
!
3.6¢

the cold hard facts, page-3
Featured News
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
|
|||||
Last
3.6¢ |
Change
0.000(0.00%) |
Mkt cap ! $93.98M |
Open | High | Low | Value | Volume |
3.6¢ | 3.7¢ | 3.5¢ | $136.7K | 3.795M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
22 | 3896287 | 3.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
3.6¢ | 784421 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
22 | 3896287 | 0.035 |
12 | 1482254 | 0.034 |
5 | 1673030 | 0.033 |
8 | 2553176 | 0.032 |
3 | 200001 | 0.031 |
Price($) | Vol. | No. |
---|---|---|
0.036 | 784421 | 3 |
0.037 | 1091832 | 6 |
0.038 | 1866300 | 4 |
0.039 | 1596472 | 6 |
0.040 | 1690078 | 9 |
Last trade - 16.10pm 30/07/2025 (20 minute delay) ? |
Featured News
HGO (ASX) Chart |