This is a repost of what I posted earlier today on an inappropriately titled thread. Please forgive the repeat ....
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Possible start of a rerating
RJM19- Similar; wish I'd bought more at .005.This looks like thefirst signs of a bottom and a rerating. Yes, we missed the .005s but the value of the entire company implied by .009/share (last trade) is still only ~$4.3M.
That's dirt cheap, which is why I bought more at around these prices after the 12 March announcement of Board and management changes. That gave me hope of further changes focused on unlocking value and giving shareholders a chance of making a buck.
How the brand was damaged (back then …)
To put the current opportunity in context, Helix IMO was sold down because of repeated shortcomings re prioritising activities, amount of drilling, time taken to release results and other reporting, shareholder engagement generally, and capital management.
People got sick and tired of hearing about potential but then not seeing enough done either at all or quickly enough - especially when so much more was expected. The Collerina (interim) resource was just one example. Then, the coronavirus added huge uncertainty at so many levels … and as so often happens, the sell down fed on itself and went way too far. So, the ground for a recovery from the overselling was being formed.
That was then and this is now - the reset…
Since March, the now restructured and invigorated Board has however lifted hope:
- Important Board and management changes were announced on 12 March;
- With Board costs having already fallen with one less Board member, the 26 March announcement then said that all remaining Board members (Peter Lester, Tim Kennedy & Jason Macdonald) had waived their entire pay until end June. That gave a very good message. Take note, potential buyers ...
- The Chairman, Peter Lester has taken on the (non-exploration) executive role of the former MD- for zero pay (for now), to save funds. Very few people of his calibre would do that. He's a highly-regarded former senior exec. of multi-billion $ companies Newcrest, North and Oxiana/Oz Minerals etc. I saw that as a tremendous sign of good faith; I'll bet other existing or would-be shareholders did so too.
I think that the seeds of a recovery have now been sewn. There's so much more to be done but the Board is signalling very good intentions and a preparedness to act.
Bagger potential still there
Given the long and painful slide to the current share price, it's easy to forget that the acreage still has very high potential, and the sector - especially copper - is still good given the EV/battery storage story.
There have been many big wins lately: DeGrey, Legend, Chalice, Alkane, Staveley etc. Look at Predictive Discovery - it has 10 bagged from .006 last Friday. There will be more of those stories. With the right approach and some luck that could be us, too.
Bargain hunters like me??
Some people are bargain hunting, especially as we are fast approaching the road out with the coronavirus. I'm one of them. I bought more when the Board first stepped in and their actions to date since then convince me they are doing the right thing, even at at personal cost to the Directors. They obviously can't do that forever but I'm reinvigorated as a buyer by what I'm seeing at the moment.
(20min delay)