shareholder half yearly report

My five cents worth, strange how HIG has been hovering over this price for a long time.

When Ramu was shut down due to a workplace incident (tragedy) the price of HIG was 8.2 cents. The price of Nickel was $3.80 usd a lb. The price of Cobalt was $ 10.30 a lb. Production output was possibly 70 per cent.

Now Ramu production is 102 per cent. Nickel price is up 20 per cent. Cobalt is up 26 per cent.

Frieda River tenement has been placed on notification pending a special mining license. HIG has a 20 per cent share of 13 million tonnes of copper and 20 million ounces of gold.

Sovereign risk of PNG is the same.

HIG management seems to be acting in a professional way. They have divested executive officers to save expenditure.

HIG is paying its debt on time and reducing same. In 2025 it will acquire free carry of 14 per cent of Ramu.

HIG has approximately Aud $ 13 million in the bank.

Anglo American are in the midst of an extensive drilling campaign at the Star Mountains.


Now the price of HIG is 5.6 cents, most of us I believe are asking why.


One of the differentials is due to China steel production which is down 1.5 per cent since September 2015. The Chinese Government aims to cut steel capacity by 45 million tonnes due to reduce excess capacity in view of tackling price sapping supply gluts, therefore in the short term steel prices have risen 24 per cent since May 2016.
The Chinese are predicting a drop in their production by 2 per cent in 2017.

Conversely ,Credit Suisse outlook is for a major restocking event which could last over four quarters delivering a strong rebound in prices in 2017. They think Chinese demand could surprise at 5 to 10 per cent growth in 2017.

Chinese car production is up 500000 units as compared to the May 2016 figure.

Copper mill head grades are dropping on the majors. Some big players ala BHP are spending major dollars on expanding ageing mines . Copper stocks are at their lowest since 2008. Copper is loosing 4 per cent in capacity every year. BHP states that world demand will exceed supply in first quarter of 2019 and that will continue
out past the year 2030 , or as far as their forecasts run.

I can't put a definitive answer on the share price. But as long as shareholders keep divesting their shares at this price we shall be in for a wait.

I have acquired a seven figure share unit position in this stock and I will buy more.