Yes, the headline US$ copper price has dropped, offset by a lower A$. But we bank A$, and the A$ copper price is still very healthy. In fact, if HGO were to vend the mine to foreign interests, the lower A$ makes it even more attractive to those buyers.
HGO will make terrific profits at these prices, whether they choose to hedge, or ride the ups and downs of the commodity prices.
Just a shame that equity markets, and Mr Rudd, intervened when they did. The deal may have been even sweeter.
(and Corporate, yes you are right about tax payable etc.. But, offset explorations costs against that. - still a fantastically cheap midcap, much like CFE).
Y
HGO Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
