Desperate need of good news, page-6

For what it's worth, here's my take –all highly subjective and only my personal view, no advice:

CAP currently has a MC of $7.7M. Cash was $2.5M as at last Quarterly, with an expected expenditure of$720k in this quarter, so I'll call that $1.8M in the kitty at the end of this quarter.

That gives us an EV of $5.9. To me that's cheap for 69.8% of Hawsons, and I've put my money where my mouth is and topped up a little today. I guess it goes back to the old truism: It's worth either a whole lot more or nothing at all.

At the moment it's dead in the water as there is no clear path forward to secure funding for the BFS, let alone a timeline, but this could change quickly. And once there's a credible pathway to fund bringing it into production, I'd expect it to fly. Personally, I'm happy to sit on my shares for a few years if I need to, but of course that raises the issue of opportunity cost - each to their own.

On top of these points, here are a few negatives and positives that strike me - in no particular order:

Negatives:

• Capex of USD 1.4 Billion to bring Hawsons to production is steep for a minnow

• Only 34% of shares held by top 20, only 2 substantial holders – lack of cornerstone / institutional investors

• I would guess that at the current rate of spending, they will need to raise capital again in the next half year - not a tempting prospect at current share price
• Chart looks so ugly not even its mother could love it

Positives:

• Tiny market cap for a project like this, massive upside if it's a go
• Outstanding high-grade deposit

• Product should be in high demand once mine is in production

• 20 year mine life

• Good location not too far from infrastructure, which is a biggie for an iron ore deposit

• Great team

• Manageable number of shares on issue

Time will tell. All IMO, DYOR.