Don’t necessarily disagree with any of the above. Just a word of caution. Clearly the copper market has had some traction in recent months with spot trading above $4 and M&A activity starting to kick in. HCH, on paper, would appear to be a prime target. We supposedly have had many constructive talks with various parties, interested parties in the data room, extensive marketing campaign and endless meetings. Yet, there was a need to rush a CR which was relatively big in size and at a significant price discount. Management and board seemed to think that no better price than $1 could be achieved. The lead placement agent Veritas could not garner any leading bid above $1. Glencore did not take part to the extent to protect its 9.9% stake and merely defended its 7.5% threshold holding. And lastly, price & volume are the final arbiter in the market. Nobody wants a bite.
Either we’re in Lassonde Curve no man’s land and value will materialize in the PFS-DFS process or sth is wrong. I’m still holding and rooting for the former. But the almost systematic disinterest in HCH by the market (and industry?) gives me pause.
HCH Price at posting:
87.5¢ Sentiment: Buy Disclosure: Held
(20min delay)