OK - Done my sums and read all thier releases, and talked to some friends.
A while back I lost a tonne of money on sticking with an exploration stock . . this isnt an explorer. So the emotional need to dump the stock isnt there. I am keeping a target of 1.80, based on a few things in the balance sheet you dont see straight away.
Costs where REALLY high - well above the average. - All maintainence was taken off the books in one hit (not amortised across the future) - They expensed all the low grade stockpiles, even the ones that still had potential AND all exploration - The plant has had some upgrades that should hold up manufacturing to better rates - they have some wicked cool exploration rates on current mining leases - They had a one off grant to the local villagers of 3+m USD - there goes the profit.
It could take time though, I am not sure if I have the patience to wait out until the back end of 2003/2004 to start seeing big returns.
LHG Price at posting:
0.0¢ Sentiment: None Disclosure: Held
