I would have thought that an advancing company in which BHP-Billiton has held a major interest for a considerable time and has further acquired over time to take its current holding to 15.6% would at least be a 50/50 chance of a takeover by either BHP or Vale.
It is evident that any number of possible takeovers by BHP exist but this is one that has very real possibilities and in my opinion is likely to surface anytime within the next 3 months.
Before i am howled down/scorned and laughed at by anti laterite people on Hot Copper, just spare a thought as to why BHP are Heron's second major holder and if that doesn't give you an answer, just remember that nickel laterite is the future and the next cycle is in motion. Heron has always been about the next cycle!! Please do not form an opinion without reading this whole post.
WHY IS HERON DIFFERENT - THREE MAJOR PROJECTS.
.. Major Shareholders • Directors 19.7% • BHP Billiton 15.6% (have held & accum for approx 5 years) • Vale Inco 13.46% * Top 20 Holders with 64.69%
.. Worlds largest undeveloped Nickel resource.
.. Low sovereign risk – good infrastructure
.. Partnership with Vale on Kalgoorlie Nickel Project.
..Worlds number 1 and 2 mining companies as major shareholders.
POSITIVES IN A BRAVE NEW WORLD.
.. Nickel Price • Confirms nickel’s status of most volatile of the metals. • Starting to see supply reduction • Will equilibrate to new cost of production in long term. • Iron credit in NPI reduced.
.. AUSTRALIAN DOLLAR • A fall of around 30%
.. The mineralisation in the KNP resources would fill Sydney Harbour 1.3 times .. It is the largest undeveloped Nickel resource single project in the world .. Resource is amenable to screening capable of 1.5% Ni leach feed. .. Infrastructure and inputs .. Resource drilling complete .. Resource estimation commenced. .. Beneficiation and metallurgical test-work well advanced. .. Baseline environmental studies commenced. .. Government liaison briefings commenced.
The Company’s Kalgoorlie Nickel Project (KNP) partner, Vale Inco, continued work on the prefeasibility study into the KNP, with an approved budget to the end of November of a very significant A$22 million dollars. Work is progressing on the engineering, resource estimation and process design with cost estimation to be undertaken later in 2008. as announced in heron’s most recent quarterly report, Vale has confirmed it is on target to deliver the pfs report by the end of january next year-2009 which is on time. this is an excellent result for heron and vale and credit must go to vale to be able to achieve this during a period of difficult labour and service provider availability.
.. Comprises of Jump-up Dam, Boyce Creek and Aubils resources 135mt at 0.77% Ni 0.05% Co .. Mines 57mt of ore over 18 years .. Treats 45mt to produce 22,000t of Ni and Co mixed sulphide per annum .. Generates net cash flow of $180m per annum .. 6 year payback an capex of 1.2 billion NPV of 220m.
During the course of the year the Company combined the nickel laterite resources of Jump-up Dam with Aubils and Boyce Creek to form the Yerilla Project and produced a positive Scoping Study on development of the project using Atmospheric Leaching technology. The Company’s significant land holding in the Yerilla district and the Technology and Supply Agreement the Company entered with BHP Billiton in January of this year made this possible. The Company’s total resource base (including the Kalgoorlie Nickel Project) now exceeds one billion tonnes of nickel laterite mineralisation and the Yerilla resource contributes 135.3 million tonnes to this total creating a second major nickel project for the company. Buoyed by the successful Scoping Study result for the Yerilla Project, the Company has embarked upon a structured process to investigate the project’s optimum development. With capital expenditure exceeding one billion dollars, Heron believes maximum value can be obtained for the Company’s shareholders through the introduction of an equity partner to the project.
(20min delay)