Ann: Hillgrove Presentation at Noosa Mining Conference, page-8

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curiouswon

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10/11/21

13:08

Post #: 57459827
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Originally posted by VYR: ↑

Presenting at the Noosa mining Conference at a time when your share price is smashed and the future looks extremely promising can have mind-blowing results if you give investors a hint of what all the blurb means in potential earnings.

The folks attending are interested only in the bottom line and I agree that the presentation lacks that King Hit that's needed to excite the investment community. Its probably too early to provide modelling and that just adds to the blurb and confusion but a simple statement about the potential magnitude of earnings would do the job. Can you do that ??? Nick Limb did in 2016 based solidly on the underlying facts that were evident in my spread sheet and that caught the investors attention. Translate all the blurb into a stage1 mine life of 5 years plus and an EBITDA potential at $4.5/lb and you have told the story in two numbers.

I have fond memories of the July 2016 Noosa Mining Conference .

For those who are interested Nick Limb the Chairman of MDL was interviewed by Itchy Nuts from Morgans in July 2016 at the Noosa conference .

He painted a similar story to HGO's journey leading up to the commodity collapse in 2016. It would be wonderful if HGO has the same ending.

Nick Limb was an expert in putting it on one page and finishing with the King Hit of earnings potential.

He explained that MDL spent $650m (building the biggest sandmining barge in the world, relocating villages in Senegal, building a power station, 50 kms of railway complete with rolling stock ,a massive port facility) and entered into a JV with Eramet ( 30% owned by the French Government)who owned an Illminite treatment plant in Norway (that was feed by very cheap Hydro Electricity.)

He pointed out that the Illminite price had dropped to 30% of the DFS projections and Black Rock and all the other London Institutions that provided the $650m dumped the shares and smashed the price down to 25 cents and a Market cap of $30m.

I had picked up on this in my price to book ratio searches which had also led me to HGO and I had piled into both companies armed with the knowledge that the one who dies with the most toys wins.

He talked about the teething problems largely being solved and the debt not being a problem and that Illminite was an essential commodity and the price was recovering and importantly the King Hit a $200m EBITDA was a strong possibility.

The share price was 26c on the 15th of July 2016

Two weeks later following the conference it was 52 cents

A year later Eramet lobed a takeover bid at $1.75 and VYR got a massive cheque in the mail.

The time its taking HGO is a bit disappointing but getting most of the early 3c a share investment back via a 1.5c fully franked dividend eases the pain.

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Of course, this is a very good idea @VYR - do you think that HGO can make some statement about potential profitability at the time of the release of the upgraded MRE (ie this month)?

HGO Price at posting: 5.2¢ Sentiment: Buy Disclosure: Held
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Ann: Hillgrove Presentation at Noosa Mining Conference, page-8

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