Ann: Kalman Resource Upgrade Lifts CuEq Inventory to over 530KT, page-28

As I am a holder of HMX and I hate to be, bear of bad news and in no way am I down ramping, just some observation on why our share price, is not loved by the market.

After having a few days to have a proper look at this announcement, I found this very strange.

1 - Daniel mentions about the potential to do a formal scoping study.
2 - On the next page he mentions about doing a scoping study.
3 - Cash on hand, at end of the last quarter.


So the way I see it, as we are in the process of doing a scoping study, for Kalman deposit, the market knows that 2.6 Million dollars, will not even buy you coffee and biscuits.

To do a scoping study, you will need to do infill drilling of at least 40 x 40 metres spacing, to better understand the geology and also to give the confidence that this project, is financial viable.
As we all know that infill drilling will cost in the millions of dollars, perhaps even up to 10 million dollars.

So if we only have 2.6 in the bank, the market knows that a very large Cap raise, as to occur.

As I have a gold company, with the project in W.A. which in 2021 did a huge 125 Million dollars Cap raise, just to bring the project to Scope study ready and also used those funds to do a P.F.S study.
Will also had that last year they did another Cap raise to raise 130 Million dollars to bring the project to B.F.S ready status.

So unfortunately we have to do something similar here and raise huge amounts of money, to complete the studies required, but with that we will see dilution. Possible even up to 1 .5 billion shares on the register.

Their is no sugar coating this but thats is what it takes to bring this company from a exploration to a production company.

IMHO.

Regards

Rossi70