Undervalued

Currently HOR has a MC of $4.8mill

A JORC at HL of 128Kt of contained Cu at 1%. The current drilling campaign should conservatively up grade the resource to 150kt of contained Cu assuming that no new discoveries are made to the south.

150 000t Cu at $7000/t Aussie gives a value of just over $1B.

Now I realise this is an IGV however in addition to the resource above there is approx $60m of contained metal in the tailings. This is potentially the game changer. If HOR can get into production and generate cash from a low CAPEX operation (approx$5M) from re treatment of the tailings at surface (SMART Program) then HOR will be in a position to drill a lot more and potentially increase the size of the resource, improving the economics of getting into production and hence start to realise some of the IGV of our JORC resource . Furthermore cash generation from the SMART program can be utilised in building a mine.

We are currently drilling over the next few months and there is potential for a new discovery to the south of the old pit  at several prospects.

Cu prices could rise as some are predicting over the next couple of years.

I think that there have been some factors holding back the SP; A CR is on the cards but I think this will be sorted next week, the stock had been in the doldrums for a while with the delay of the drilling campaign but that is in the past now, and mining stocks have been out of favour although we may be at the bottom of the cycle now.

For the current resource with the likelihood of production and recently commenced drilling campaign HOR is undervalued at $4.8M imo.

The next 6 months should see a healthy rise in our MC.