Hi we9smia, I think that like BDR was in the later part of 2015,...

Hi we9smia,

I think that like BDR was in the later part of 2015, HIG is a company with a series of issues but also some prospects of a turnaround.

Like BDR, a rally in the key commodities produced at Ramu (Ni and Co) will go a long way to resolving their immediate issues.

Like BDR, HIG faces a limited time horizon to achieve this turnaround because, although the JV partner is funding the cash deficit, this is all clocking up on the balance sheet and at some point the compounding interest charges will move above the ability of Ramu to pay for these and pay down principal.

The situation is not there yet, and it appears that with current commodity prices and the operation now running at nameplate capacity the ship may turn just in time. There should thus be a rerating for HIG at some point once/ if this becomes clear.

The exploration/ development projects are then potential future (long term?) upside IMO.

Cheers
John