It is largely dependent on your investing style but I find that when things look the most grim is the best time to buy. I don't mind catching a falling knife, over time far-larger gains are won by instead buying low, adding positions when a particular asset are out of favour.
On HRR specifically though the risk has definitely increased but that doesn't mean the reward has not (case in point being our precious metals credits). It would be a bit silly for the major shareholders and senior debt provider not to give HRR a lifeline. Logically they will or their whole initial investment will be at risk but at what cost and what covenants are the main issue here. Also someone here commented that an equity raising would have been a preference and in most circumstances I would agree. The problem with that though is that the SP is very depressed which makes it risky for any underwriter and if there will be any takers at all for the newly issued stocks retail or otherwise. The best we can hope for at the moment is if the BOD can configure a silver streaming finance. As the precious metal prices are high the market demand from the mining finance sector for such a facility is currently off the charts.
For now the best coarse of action is to sit tight and let the BOD sort this out the best they. There is really no point on worrying about something we small fries don't have control over. Read the ann carefully when it comes out in a couple of weeks and make a decision on on what best suits you then. Alternatively, If you are near Woodlawn drive by and have a look if the lights are still on.
