Business Description:
Highlands Pacific Limited (HIG) is a Papua New Guinean (PNG) based mining company, focusing on the exploration, development and mining of precious and base metals. Its development assets include the Ramu nickel cobalt project, the Frieda River copper gold project and exploration on the Star Mountains (Nong River and Tifalmin) licenses.

Strategy Analysis:
The pre-feasibility study due in the third quarter of 2010 for the Frieda copper project is currently considering larger throughput and production options. Subject to the project continuing to meet its project hurdles, a 12-month feasibility study will begin in 3Q 2010 with possible construction in 2012 and production in 2017. From commissioning, HIG has access to its pro-rata 8.56% share of Ramu nickel project's post-debt servicing net cash flow. HIG also has an option to acquire an additional 9.25% at fair market value which could increase its interest to 20.55%. . Highlands Pacific reported negative cash flow of $4m for quarter ended 30 September 2011. Operating cash flow for the period was $(4m). Payments for exploration and evaluation were $(3m). Investing cash flow was nil. Financing cash flow was nil. Cash in hand at the end of the quarter was $11.67m.