LHG unknown

my review of lhg for this next month

  1. 2,076 Posts.
    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.
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