not good news for heron holders, page-15

No probs Sally,

I held both GME and HRR for what I perceived as value exposure to the Ni laterite sector, something I had high hopes for. I haven't been a very long term holder and I reconsider my investments as the facts change.

People generally invest in a company at some time and price based on all available information to maximise gains verses the risks inherent, such as new technology. Heap Leach at JUD was a major reason people invested in HRR at $1 plus instead of say 60-70c. Many long term holders held their shares as the price rose to $1.40 because of the added value brought by JUD heap leach. That the heap leach technology is not profitable at JUD is just bad luck and I accept that.

Firstly, most people rightly put more value to done deals than discussions ALLUDED to about POSSIBLE deals, much like a JORC resource is of more value than a potential resource. That is why the signing of a deal with BHP was always going to be well received and depending on the fine print potentially highly value accretive. Thus many people bid up the shares on the added value of the deal.

Secondly, most poeple will rightly assign less value to a company whose major project (first in cash flow timing sense and most likely to go ahead) is scrapped while the R&D guys go back to the drawing board looking for another technology that might work. Thus many people have/will bid down the shares on the value lost from a hither-to profitable project.

That you are a very long term holder from much lower prices who would neither buy or sell based on new technology deals or JUD heap leach falling over.... well bully for you. Your money management practices are your own business.

Spare a thought perhaps for the good burghers who were tipped into HRR on the good news just to end up trashed days later. They didn't see JUD as a free bonus, take-it-or-leave-it project I'm sure. In fact ask not for whom the bell tolls, for it tools for you:)

What annoys me is that management was well aware that the much trumpeted heap leach PFS was a dead duck 3 days ago but chose to put out a very positive spin technology tie-up release with the words "heap leach" everywhere. New and existing shareholders leaped in as shown by rising volumes and share price post announcement in a terrible market, just to get smashed by the truth days later. The board was trying to protect the share price during a market rout by not coming clean in a single announcement, even if it cost the innocent (well uninformed anyway).

For my part things played out pretty well as I never bought on the BHP report and could not have got out today at the price I did without the strong bounce afforded the BHP report. I doubt the bids were aware the JUD report was out but thems the breaks. I sold some GME but keep some because they are further underwater, have a higher grade laterite than HRR, the same saprolite as under testing by MRE, closer to infrastructure and may have more takeover value from MRE. Still, this news certainly has dented my enthusiasm for laterite heap leach projects. Existing infrastructure and grade has just become that much more critical to success IMHO.

Your loyalty is commendable and while I'm not suggesting you will go down with the ship, the ship just got a bit smaller. I hope for all holders sake that JUD can be the first successful demonstration of nickell laterite AAL technology. BHP is happy to throw crumbs at it for a seat at the table and to give CRVD-Inco the sh.ts anyway.

Cheers