What happened to the Hill End Gold Ltd share price?
At the time of writing, shares of Hill End Gold Ltd [ASX:HEG] are up by 1.2%, to 8.4 cents in today’s trading.
Why did Hill End Gold shares do this?
Hill End Gold announced a pre-economic feasibility study (PFS) for its Yendon high-purity-alumina (HPA) project in Victoria. HPA is used to produce LED light bulbs, semiconductors and lithium-ion batteries. The total demand was estimated at 24,700 tonnes last year ― up from 16,400 tonnes in 2013.
What now for Hill End Gold Ltd?
Here are the results for that PFS:
Source: Hill End Gold
Hill End Gold’s Yendon HPA project should generate $133 million at $25,200 per tonne each year. That’s not bad. If Hill End Gold was actually a gold company, the share price probably would have surged on today’s announcement. The question has become, how will the company finance itself over the next few months?
Hill End Gold offers a quality project, but is cash poor.
However, once the capital raising risk is removed, the share price could skyrocket…
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