heron for aim - london stock exchange Quite right SallyWith...

heron for aim - london stock exchange Quite right Sally

With Heron now in control of the "three nickel province" vision and could be controlling more ore reserves and resources than Minara of which ore is superior to Murin-Murin both in grade, screanability, metalurgy, recovery and processing, it is time to sit back and enjoy the year and half long wait as a shareholder.

I can list at least five potential suitors and at least as many compelling reasons why each suitor should look at Heron in terms of a) takeover b) JV

Even more compelling is the fact that the drop to 12cents on 30/4/04 counterbalances the spike to 20cents on BHP announcement that Ravensthorpe would proceed, and most importantly about 4m (~ 4% of the stock) shares traded between the high and the low in a space of couple of weeks.

Not to mentioned the likely free in specie distribution of Regent shares which must list on or before 31-dec-2004?

This could have flashed out weak longs and brought in potentially stronger ones.

More compelling reasons:

There is a stock that listed in London recently by the name of Oriel Resources (London stock exchange code ORI.L) which boast a nickel laterite ore deposit of some 100mt of ore at 1.0% Ni in Kazakstan.

The IPO price was 45pences a few months ago and on listing skyrocketed to about a pound and now trades about 75pences.

On the same exchange, a stock called European Nickel of which BHPBilliton is a major shareholder, hopeful for nickel laterite deposits in the Balkans and Turkey has a market cap many times that of Heron.


Further, Canico Resources (Toronto stock exchange code CNI.T) which has a nickel laterite deposit in central or South America with tonnage about less than half of Heron's has a market cap of about CAD$400 million.

Another stock, Weda Bay resources (toronto WDA.T) has a market cap many times that of Heron and has a tiny (in comparison to heron) deposit in Indonesia.

Yet another stock Pacific Rim Resources (Vancouver PRL.V) has a small desposit, in comparison to heron, in the Philippines and trades at higher market cap than Heron.

On our home front, if you compare the likes of View Resources (ASX:- VRE) with Heron based on market cap per tonnes of nickel metal in the ground, you could find that Heron trades at a fraction of a cent compare to View resources a few thousand times the equivalent market cap of heron.

further, GME Resources in comparison to Heron, makes Heron dirt cheap.


It is my opinion that if one averages what the other stocks mentioned above trade compare to heron in terms of amrket cap per tonnes of nickel ore in the ground, then Heron could be worth about AUD$3-$5 per share, based on the 128m shares currently on issue.

This figure is not adjusted for NIL sovereign risk !!!

Well Sally, it was easy buying their dollar coins for just 15 to 9.6cents each but now try to buy for example a few hundred thounsand shares and see how much one would have to pay for them

Arhidas
Holds HRR shares