Remembering that HGO paid off their convertible note debt after the ESG disposal at 35 cents.
This is the same company that gave shareholders a dividend, only then to dilute their holding through a capital raising at 40 cents.
Proposed a buyback whilst simultaneous looking for finance. Then no buyback.
Now, another capital raising. But unlike last time, they have said nothing, causing their share price to slide whilst the rest of the copper and gold market flies. Then, when the share price is barely above its lows, they take the opportunity to issue more equity at this low ebb.
Tremendous strategy. No promotion of Kanmantoo first. No reserve upgrade first, or promotion of the NPV based on a higher copper price and long mine life. No promotion of Sumba in any meaningful way. No real push on Bird's Head, which they casually mention is attracting the attention of the world's major copper miners.
Wait until the price of the company is so low, and sentiment amongst shareholders and the market is at its worst, and then effectively sell part of the company at this low ebb.
Tell me, Dean Brown, has HGO picked 'the top of the market' for this placement?
Great company. really.
HGO deserve to be taken out by a copper miner looking for extra production (and perhaps this is what they want before the EGM?). Shareholders would FLOCK to any offer.
Yaq
HGO Price at posting:
30.0¢ Sentiment: Sell Disclosure: Held
