HMX / CNB

I had already thought about this in a "nearology context" last weekend and had also written something about it (namely that it might be interesting for a CNB shareholder to look at HMX on logical grounds). Of course, opinions differ here.

I wrote something about this in the CNB thread (and I will probably be criticized for it because I do not hold CNB shares)

Spontaneously, I feel that HMX is currently in a better - or perhaps better put - more interesting position than CNB. Dan has expressed his opinion a few times that CNB would struggle to get an open pit operation going around Mt Hope without cooperation with HMX. I think there is some truth in this view of things.

On the other hand, some tenements of the both complement each other wonderfully.

Further, CNB's market capitalization is higher compared to HMX. So either CNB is too high or HMX is too low. You can see it however you want. Maybe both are too low. Whatever the case may be.

Then the thing with the gap stands out (from the point of view of chart analysis). You can believe in it or not. In the case of HMX, we closed the gap last week and are ready for a new start. In the case of CNB, that could still be ahead. It doesn't have to be, but it could be.

So I'm just thinking out loud. What would happen if the market capitalization of the two would converge? Could it be that "someone" might have an interest in the two "merging"? A merger of equals? Is it somehow not striking that in the last 2 months, with relatively little volume and from time to time, the SP has been "deliberately" pushed down? I suppose it's not just me who has noticed that, is it?

The spoilsport in this story could of course be strong results from HMX side (pipeline is full of potential results in the coming weeks) or new developments on the Yandal (lithium) or JV front (Bullrush) - then HMX pulls away - I think. That would be the development I would favour. I am not really a friend of M & A - although in this case 1+1 might not make 2 but 3.

So - as I said - just thinking out loud. This is not financial advice or anything in this direction. I'm sticking with HMX hard as nails - because I believe in the (great) potential - DYOR