Balanced Portfolio - Buy Hillgrove Resources (HGO)
Date: 03/04/2024
*** GENERAL AVICE ONLY***
Hillgrove Resources Limited (HGO) is an Australian mining company listed on the Australian Securities Exchange and focused on the development of the Kanmantoo Underground Copper Mine in South Australia and mineral exploration in the south-east of South Australia. The Kanmantoo Copper Mine is located 55km from Adelaide in South Australia
Mkt Cap: $150M
*** Trade Plan ***
Hillgrove produced the first copper from its Kanmantoo mine in February 2024, making a rare pure play copper producer listed on the ASX. The company’s stage one mine plan includes
- All in sustaining cost of A$8051 a tonne (approx US$2.4/lb)
- Copper production of 44,000 tonnes per annum
- Mine life of four years
HGO raised $10m at 6c in February so that should be a natural floor on the stock price. With production starting this quarter the next quarterly could be a good catalyst for the share price. HGO was trading near 10c earlier this year, so that seems like a natural target for the share price. Spot copper is trading near 52 week highs will be the background thematic behind this position.
Total Portfolio Allocation: Total Allocation 1.5%
Entry: 7.2c | Target: 10.5c | Stop: 5.5c
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.