HLX (ASX) Ann: Quarterly Activities Report March 2018

Originally posted by La Tache ↑

@1ForDaMoney - thanks for gathering up the Collerina announcements (on that thread); very helpful. It's prompted me to reflect on Helix's portfolio, and what a day to do so, given the exciting cobalt-lateritic nickel announcement just released. (I've posted on this thread however as my content was broader, and is more akin to what was in the Quarterly).

More good news: cobalt-lateritic nickel
With Helix's vast acreage position and this being only the first regional scout air-core drilling, it's exciting to see "thick zones of laterite from or near surface, with numerous holes ending in mineralisation", with peak grades of 0.20% cobalt and 1.2% nickel.

Those projects aren't cheap but Helix has nothing in its share-price, IMO, for this asset. Helix has a M.C. of under $15M in total, whereas companies directly along strike from us on this play have vastly bigger market caps (CleanTeq - $810M; AUZ - $220M; CLL - $60M).

The JV (Helix 51%) with Collerina Cobalt (CLL - 49%) gives Helix the majority stake in this play, while reducing future costs. There is obvious strategic value in that alliance. We'll surely get good value for this asset, one way or another, especially when much of the world's cobalt comes from a part of Africa that many buyers do not want to deal with, so they're studiously looking elsewhere. Not to mention the cobalt price - about US$89,000 / tonne last night on the LME.

Unlocking the upside
I know there are some other juniors like Helix which have exceptional upside but are lagging badly in the current market. I'm confident that proper value will erupt for Helix at some point so I'll just wait it out, and not stress myself out of the position because of underwhelming share price performance so far.

Board – more quality
I like how Helix is subtly re-modelling itself e.g. with quality additions to the Board (Gary Lethridge and Tim Kennedy). It's also pleasing to see how good the acreage portfolio is; the depth of assets is extraordinary. It shows that MD, Mick Wilson, has a very good eye and has been very astute in building up a quality portfolio - on a shoestring budget, BTW.

Kid in a lolly-shop problem?
The remarkable thing with Helix, IMO, is that because the portfolio is so deep with early-stage opportunities, individual assets ironically are not fully appreciated by the market, and the sum of them is certainly under-appreciated. It's like being in a lolly shop that has so much choice that it's hard to know what you like the most because something else distracts you before you've finished looking.

It's also true that our management is, I imagine, a bit stretched for the number of activities that we have on at the moment - and so is focussed on substance rather than spin. Far better that than the reverse. This is not an easy balance for a small explorer.

Still to come …
Like the dilemma faced by The Who, who didn't want to follow Jimi Hendrix on stage, I'm hesitant to follow previous explanations of the likes of @Technician and @1ForDaMoney re Helix's exploration potential. However :

The recent announcement of more Cu at depth in our flag-ship asset, Collerina, was very significant. My guess is we'll end up proving up a commercial resource there, and getting a re-rating off that alone. Further drilling surely will be starting there any day now. Whether we see the "don't argue" hole in this round or later, I'm pretty confident we'll find it before too long.

Speaking of copper, the Joshua asset in Chile will be increasing in price as the copper & other battery metals phenomenon winds up (yes, pun intended - sorry) and the copper demand-supply balance improves. There's nothing in our share price for this, IMO.

Then there's Yathella, which looks really interesting. And Mundarlo, which is a big sucker if it works at all. Again, patience will be the key. I'm allowing several rounds with the drill bit before we really know.

There are many more assets, in a very high-potential pipeline of opportunities. Good luck, to all!

appreTha

Expand

Thanks @La Tache reckon you are definitely giving us the " good oil ".
Considering Collerina will be the jewel in the crown, in your opinion should
most of the other assets including and in particular cobar gold be JV'd
Also with CLL building their own plant is it an advantage to HLX to do an
offtake deal? As understood CLL are looking for deals in this space.
Would appreciate your thoughts.

Cheers

No.	Vol.	Price($)
75	148724958	0.2¢

No.

Vol.

Price($)

148724958

0.2¢

Price($)	Vol.	No.
0.3¢	15096192	3

Price($)

Vol.

No.

0.3¢

15096192

No.	Vol.	Price($)
74	148474958	0.002
22	105099981	0.001
0	0	0.000
0	0	0.000
0	0	0.000

No.

Vol.

Price($)

148474958

0.002

105099981

0.001

0.000

Price($)	Vol.	No.
0.003	15096192	3
0.004	51082473	46
0.005	22872632	22
0.006	7288236	12
0.007	6700120	5

Price($)

Vol.

No.

0.003

15096192

0.004

51082473

0.005

22872632

0.006

7288236

0.007

6700120

(20min delay)
Last 0.3¢		Change 0.001(50.0%)		Mkt cap ! $9.792M

Open	High	Low	Value	Volume
0.3¢	0.3¢	0.3¢	$32.09K	10.69M

Thanks @La Tache reckon you are definitely giving us the " good...

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

Bitcoin: Current State of Play & Where to Next | Swyftx

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

Emerald & Azure score Digger & Dealer awards

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Thanks @La Tache reckon you are definitely giving us the " good...

Top Stories

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

Bitcoin: Current State of Play & Where to Next | Swyftx

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

Emerald & Azure score Digger & Dealer awards

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News