Thanks
@Technician,
@La Tache and
@1ForDaMoney for your pervious commentary.
I would like to add to these guys excellent posts if I may, there is a lot more smoke to add to this as we get into full blown exploration mode take note of some of my findings in weeks gone by. I feel it is now the right time to discuss this.
HLX is in a very compelling state right now with a EV of just 13 $million.
In no particular order :
Commodities likely to go on a two-year minimum run the specs in this area are only getting started I feel. Copper and NI/CO (HPA concentrate) especially looking good.
Euroz now looking like they are finally done on the broker data. Bells slowing significantly of late and Taylors are easing off as well I dare say its just the small flippers that participated in the last raise as the core of it was to a solid consortium I believe. So overall supply is now tight IMO.
Baker and young are large net buyers along with shaws. Bakers average was around the time of that ni/co sample announcement by the looks with a
5-cent average and none sold to date from either party. There is very good reason for this buy just look at CLL and our future a little further down the track after drilling starting
Divestment strategy is playing out with the iron ore asset recently agreed upon and Chile copper to follow at some stage from an accounting prospective it seems to align with events that will spur the asset appreciation on the core assets to go against any write-downs from the divestments. The Chile copper could yield a nice cash pile to further our exploration even further judging at the pace of their intentions to drill in many locations they maybe close to this.
From the quarterly if there is one statement that needs to be highlighted its this.
“This EM conductive trend is considered a significant target for expanding the massive sulphide mineralisation at the Collerina deposit. Plans for further drilling to test this trend in the first quarter of 2018 are underway as part of the ongoing exploration program at Collerina”. While everyone is wondering from October till now where the assay results are don’t hold your breath this time was used to line the ducks up for this soon to be started drilling and major confirmation of what lies beneath (central zone). The economics will be nothing shy of amazing if what they expect to be here is there. As far as valuations go I don’t believe for one second the MC accounts for even the shallow stuff at collerina deposit let alone any thing else. Also, of note is Mining legend mark creasy was becoming quiet vocal conducting an interview about this work in late October. Watch this one very closely.
It has been rumoured that Rob Greenslade is in the top 20 now. 1fordamoney may know a bit more on this one but if we confirm this it would bode very well given our valuation point at this moment and what potentially is about to be geologically found and monetised, consequently we will become a prime contender for corporate m&a activity in a heated region in which most is controlled by HLX.
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Robert is currently a director and co-founder of GP Securities a private investment vehicle focusing on various industries including funds management, resources, health, education, food processing and technology. He is also a senior advisor to EMR Capital, a PE fund with over US$1.0 billion FUM that is focussed on the resource industry, in which GP Securities is a founding shareholder”.
Mundalro (currently drilling) being vended with Andrew Sloot of fender geophysics (Syndey) as the partner. This bodes well from my experience when a known well regarded geological professional completes the cheaper side of the exploration then vends in to spread the risk with a publicly listed company for an 80% slice and they do the more expensive drilling side. This one geologically looks fantastic and we could be about to find another VMS deposit and monetise for both parties. Interestingly I believe the last raise was out of Sydney not Perth so I do wonder if it has something to do with this as mundarlo was only first presented in the oct quarterly some 3 weeks prior to the raise. Since this raise liquidity has seen major change for the better something is definitely up just can’t pick which projects or projects have spurred this as all display strong potential.
Now this one is interesting, the Ni/Co announcement on the 7
th Dec (a week after the raise 3B) has seen dramatic change in trading behaviour and volume. So, to give some context on this one back in the dark old days of 2015/16 when mining was dead HLX basically gave a lending hand to what is now CLL so they could avoid losing their tenement that houses their main Holmesville deposit. Terms are as follows and yes we do have rights to the ni/co just not in two areas which host their deposits a lot of people think we only the base metal rights that is incorrect.
These include Helix’s exclusive right to explore the entirety of EL6336 (or any replacement tenements) for: (i) precious and sulphide-hosted base metals; and
(ii) laterite-hosted cobalt-nickel deposits outside of CLL’s designated areas of interest (refer Figure 2). All our discoveries are outside those forbidden areas.
Other key terms of the agreement regarding lateritic cobalt-nickel exploration on EL6336 include: q Helix must notify CLL of any lateritic cobalt-nickel discoveries made on EL6336 outside of CLL’s designated areas of interest within 30 days of making such a discovery.
CLL then has 30 days from the time of such notification to elect either: a) To take up a 49% equity interest in the new discovery, with new discoveries to be advanced in partnership under such a Joint Venture structure (51% Helix and 49% CLL); OR b) Not to participate in the new discovery, whereby Helix retains a 100% interest in that discovery and can progress it on that sole basis
Now it gets interesting, post the Jan 19
th co/ni sample results the company’s language become very bullish and at the time it was rumoured by fangulator that the camp was of elevated spirits. As the company has flagged there is a good chance that with only a little bit of drilling capital they could create/ release strong asset value. Laterite NI/CO is shallow and cheap to drill however what has some parties interested IMO is the not the ni/co leaching concentrate which is not that great but more so the relationship we have with CLL and strong chances of a future JV for stock feed agreements etc regarding HPA production. This will be a win win relationship and would not be surprised if this has not been discussed in the event of this near-term drilling coming up trumps which indications are good for.
For those who don’t know CLL who is led by a serial mining entrepreneur they have successfully tested and are currently testing for scale up of the lucrative HPA product. They are also looking for take-off partners where we in the near term may be able to assist. Demand for this product is going parabolic.
Now HLX is in a good position now that they inherently have this bond with CLL and can leverage off the time and capital they (CLL) have spent over the last year or so getting their product to market somewhat free carried if you like, a true win win which I’m sure management are surely happy about what they did in 2015 now.
So, over all HLX is now perfectly aligned in a geological/financial/tax/M&A and register sense and I feel with the commodity cycle turning for its upward correction it’s time for the moves/smoke to come into play.
All this would not have happened without the hard work of mick and his team over the past few years of being very smart with capital/geological progression decisions and taking advantage of mutually beneficial deals. As the ducks are lined up its time for the show to start and there is very real potential to make a very good return here after many years of being beaten down as they were “boring” well that’s going to change quick from here IMO.
Cheers CMA
(20min delay)