Risk free valuation of $1.68, with upside of $3.88.
The author does make some valid points.
My thoughts:
- Cost of construction higher due to inflationary pressures. Impact on debt/equity required - If costs remain high to point of production in F24 does this strengthen HFRs competitive advantage….. lower logistics costs than the Canadians, being closer to port and market - Shallow mineralisation is already an advantage, becomes more so with higher extraction costs - Impact to future revenues if costs remain high and Russian embargoes hold firm. Perfect storm for higher spot price. Perhaps it was beneficial that only MOUs were signed, rather than binding contracts. Once financing and permits are signed could be perfect opportunity to sign forward sales contracts at record prices per tonne
HFR Price at posting:
97.5¢ Sentiment: Buy Disclosure: Held
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