history shows $2.50 share price b4 drilling

With HEM breaking out, it is worth looking at what sort of share price we might see in the short term.

History of the junior iron ore sector in the Pilbara shows that a undiluted market cap of $100M is more than possible before a drill rig hits the ground. With less than 40M shares, this is equal to a share price of $2.50.

FMS is a good case study. When FMS announced their "Nearology" to FMG, the share price quickly ran past 10c (with over 1 Billion shares on issue). The market quickly got excited, and the most money was to be made before a drill rig drilled a single hole. The FMS market cap is now well over $200M.

HEM's share register is almost the exact opposite to the FMS register (40M vs 1B), so without the liquidity, we are not going to see the 1000% returns over a 2 day period. That said, HEM could easily match a similar market cap over a short to mid period of time.

The intesting thing about the FMS case study, is that the HEM nearlogy play is actually next to better quality deposits. The FMG deposit is high in Silica, and so is the FMS one. HEM is next to Rio's 52mt a year Yandicoogina deposit. The Iron Ore is much better quality.

Like FMS's initial releases, HEM is ticking all the right geological boxes (outcrops, formations running in from next door tenements etc).

Whilst it is very early days, history shows that by waiting for drill results, the best part of the run (and multibagger returns) are missed.

All this is just IMHO.