HXG 0.00% 2.0¢ hexagon energy materials limited

Our MC is only $22M at the moment. I don't think we'll go to 2c...

  1. 229 Posts.
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    Our MC is only $22M at the moment. I don't think we'll go to 2c unless there is a total market crash. It's speculative though. We have taken the risk of getting 2-10x gains and we have to accept the risk of going 0.5x. It does hurt though and hopefully doesn't go any lower than this. I have also had enough, after 5 long years. I would even hope MIN put an offer up to buy the whole company. It's only going to cost them 10-20% of the mine build to go from 51% to 100%. Anything to spark some life back in.

    I had a look at those 2 companies you mentioned... Yes Mason Graphite has dropped 90%, but it is still a company worth $34M that hasn't achieved production. It's a larger deposit, but requires caustic bake and sulfuric acid leaching for 99.95% purity, rather than simple flotation. I just think that the Canadian market has become overblown like the US market. There are a huge number of zombie companies that have valuations in excess of the profit they generate.

    And in the case of Westwater, I am confused what to even make of their share price. The past numbers (like 25x the current price of $5M baffle me). Their project is a lot smaller and they are in very early stages. It looks like they are out of cash and at best, they are hoping to reach 15,000 tonnes of production in a 7 year ramp up. They are Alabama-based and may be worth no more than HXG's investment there.

    It's devastating to hear if you have halved your life savings here. Difficult times like these can really wreck retail investors. I have doubled down and also feel the pain. As difficult as it is, we should try not to make trades emotionally and diversify.
    Last edited by markolious: 29/08/19
 
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