Potential for M&A

Another area I am getting more and more active in my research is the real possibility of M&A happening with Helix.

There is a particularly strong case for activity between HLX and AIS I think. Collerina with its fantastic thick and good grade hits from surface are potentially easy enough to monetise quickly and now with the confirmation of the depth extension has it been the catalyst to make a decision on the consideration of monetisation with a third party? Maybe / maybe not, but I think its something we need to assess. Aeris has recently cleaned everything up in terms of their debt structure and copper hedging and is in a strong position to potentially approach Helix for some sort of corporate deal especially given the strong synergies we have with each other in the fact that they would potentially need more feed ore for their plant and we are within trucking distance to make a potential economic case.

1. GP securities relatively recently appeared on the top with 3,000,000 units (they were pushed back by new entrants in this latest top 20) - One of its executives (Rob Greenslade) is a very experienced M&A guy in resources and metals not sure if that has anything to do with this but just interesting it could just very well be investment for them plain and simple.

2. Helix recently says-

"Helix is well-placed to deliver value from an established mining district with new discoveries and active M&A” You have AIS across the ditch recently saying the same thing about M&A.

3. Aeris recently says- They have recently really cleaned up the company with regards to debt and hedging.

“Provides financial flexibility to focus on organic growth opportunities at Tritton and Torrens and explore M&A opportunities”

Now I’m not suggesting anything untoward here, but look at the trading on HLX and AIS very recently, specifically the close today at 30 seconds out on both of them particularly on the CHI-X platform. This was on a day that saw no specific events for either company the broader market was positive and copper was neutral to positive on the daily and strong on the weekly chart. Now HLX is a spec this can happen its bloody undervalued like all hell but it can happen, with AIS on the other hand it’s a producing company with a total MC of 115 million roughly (debt included) it’s a tad odd to see that trading. I totally understand it’s an illiquid stock, but still odd. Are we being groomed for a corporate move? Anyone's guess is as good as mine, but there is a strong case for it to be in people’s minds.

Also of note is their uptrends started within a week or so of each other August/September last year - this is just a observation only.

Love to hear others thoughts on this - I know 1FDM when he posted alluded to this being a possibility here and the AIS thread and I tend to agree.

All the best