I wouldn't have thought HRR in the 40s would be a serious prospect again - but the buying was very soft today, so it can't be ruled out - Trying to assess the underlying reason - it goes beyond the standard post announcement sell down - Given that a large proportion of HRR stock is in non-traded stakes the gyrations may have largely been from retail investor trades, who may not have had the appetite for a 5year wait for production - Whether this perception is valid or not is not the point - I recall from other posts Ian Buchorn will be doing a roadshow to institutions soon - if this is a success getting more insitutions on to the register may stabilise things - However a significant chunk of HRR will remain in retail hands.
From this perpspective it is a short/medium term challenge for HRR to communicate its value proposition to retail investors. Although I liked the Diggers & Dealers pres, I did not unequivocally translate the potential share price gains associated with the KNP, although it implied it. The publication of a DCF analysis of the KNP with a breakdown of revunue and modelled costs for HRR/Inco may assist in getting some punters to see that value is attributed to a mining reserve several years prior to production. An additional option may be an attempt to value the blue sky associtated with sulphides exploration, although IB seems to like quantifying properly what he has and leaving it at that - a refreshing change to some of the other juniors around at the moment.
Dunno, keeping an eye for an entry point, although if it's going to get cheaper, I'll wait.
HRR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
