options for a hedge, page-7

A few thoughts senderos,

Firstly, HEG could make very effective use of all funds raised by Option conversion. Expanding Hawkins Hill/Reward could be done by organic growth but it would be much slower. Hargraves will need funds to construct a decline, initiate mining and set up a treatment plant. There will be enough funds flowing from option conversion to both accelerate Hawkin's Hill/Reward and start Mining at Hargraves (provided grades at Hargraves are reasonable).

Secondly, If you have a look at the composition of the HEG board you will see some strong links with the investment community, particularly Bruce Thomas and Ian Daymond. Chairman Alf Paton would have good contacts as well. Add to this the recent placement through Sino and the picture emerging for me is a company with robust connections with local brokers.

Thirdly, take an ever so slightly paranoid look at trading patterns and see broker influence. Before that strong surge a few weeks ago there were regular buy orders of about 50k shares very likely a broker attempting to fill a larger than normal order without spooking the price. In recent days we have seen the opposite. Small parcels of shares being dumped to push the price down. Worked to a small extent this afternoon with a flurry of selling near the close. Not much volume though.