chart holding nicely for now, page-20

Hi kizo,

and thank you for the charts. I have no charting experience so always appreciative when chartists provide details and associated commentary.

However, from a fundamental perspective, I'm not sure how useful charts of past performance of HZN are. The company has gone from an explorer to a tiny producer, to a soon-to-be small producer.

The dips in recent years are related to the disappointing performance of its NZ producing asset and the associated cashflow problems caused by revenues not meeting expectations.

That said, the NZ production has stabilised at around 1000bopd and while this is well short of the targeted production, the coming-on-line-as-we-speak Chinese asset will lift HZNs production to around 5,000bopd in the next few months.

There are assets in place that could lift production to around 20,000bopd in the next 2-3 years.

So while previous dips in the charts may have related to poor exploration outcomes or disappointing production levels, this is in the context of a company with a $0 to $50m / year revenue rate. From FY2014 onwards the company is going to be in the $200m and above revenue category, so I would have thought that past share-price gyrations would have little to do with predicting future ones.

Even on a very rudimentary fundamental analysis basis, the company has broker consensus of eps of 5c for FY14. On a PE of 10, this values the company at 50c/share. And with the strong growth profile of the company, a PE of 20 appears reasonable to me ...