ABSOLUTELY COMPELLING ECONOMICS, page-625

I actually hope that you are right Suwang, I'm all geared up to pounce if it dips below 20 cents but I hope it doesn't happen, and its holding up pretty well so far.

There is real yin and yang between medium term downward sharemarket forces as the Fed has made it clear they will continue tightening vs shorter term probable HIO announcements that could launch the SP higher in any market.

The Saudis are Trump lovers who hate Biden and intend to keep upward pressure on oil pricing by not increasing production to replace Russian oil, ensuring inflation will stay high, so share markets and debt laden economies are likely to continue to trend down for some time to come rather than rebound. The chances of things getting ugly through deleveraging are high. Most of Asia and Europe are facing strong headwinds through massive energy cost increases. The USA has its own oil and gas but like Australia will charge domestic customers world prices wherever they can so the energy sector will help balance losses from other industries. Rising energy and interest rate costs will whittle away profits causing companies to monetise excess stock at lower rates as sales soften. Zombie companies will fail, especially in the property/building sector as we see here in Australia and China etc happening now that will in turn flow through to suppliers.

On the other hand any weakness in HIO's share price could give potential JV partners or offtakers an incentive to negotiate harder now rather than later at a higher price later. The main danger I see is that deteriorating financial conditions worldwide may make it harder for HIO to raise funds, increasing the odds of some sort of JV, that will dilute current shareholders. Having said that there is massive SP undervalution so there is plenty of fat to burn on that front. The current dynamics we face now are radically different from those HIO faced at the beginning of this year, we can either accept this new reality or stick our heads in the sand.