Here's my take on HEG. Now before I start, I'm not the most...

Here's my take on HEG. Now before I start, I'm not the most popular poster on HotCopper, so feel free to add me to your ignore list.

HEG is being priced like all other companies with a business model that requires regular cash "donations". The term "business model" is non-existant in most junior gold companies and used very freely. Gold companies are not alone. All explorers, Biotechs etc are in the same boat.

In such situations, a company's lifespan is measured by its burn rate. That is, the rate at which a non-profitable company lacking a viable business model can run through its cash reserves.

That's not saying these companies will disappear, but many will go back to drilling a few holes on a very small yearly budget.

The financial climate has changed. We are coming from decades of easy credit and many companies have thrived. ATM money only goes to companies with a sound business model and fundamentals. Gold explorers dont fit that bill.

This is not the first time this has happened and it wont be the last. HEG needs a major cash injection that I don't think it will find in time. It will find enough to keep in "business" but....

You cant run an producer on a shoe-string budget. I'm sure many will disagree and that's fine. However to me, it's quite obvious what will happen.

This is all my opinion only and I could be wrong.

This of course could all change if gold went up. I've been around long enough to know that you can't say gold wont get to $5000/oz or even $300/oz. Nothing amazes me anymore. Anything is possible.

I will not comment again on this. Well...not on HEG anyway.

Good Luck.