DFS is 12+m old. $207m NPV assumed POZ of US$1/lb (now...

First 19 Last

Share
Profile

Follow
Wyman Wells

315 Posts.

01/07/17

00:00

Post #: 25602060
Share

Originally posted by FiendishRedbeard ↑

miningmad

Think you have answered your own question, the market cap (including debt) is not far from the current project NPV making limited sense to be bullish on the upside. I don't include cash as this is largely sunk in this case. You can then easily argue the current sp is fully valued including project risk of restarting an old mine and tailings retreat plant.

So why have the funds pushed in? Small old asset so no or very limited chance of a takeover to exit. Can only assume their forward pricing for zinc and copper is alot higher than current assumptions. And significant extensions to the high grade underground mine plan and production are being assumed. Given the current market cap there is limited risk reward. Brokers will probably come out with valuations of 10c to 15c or more for HRR using upside assumptions imo. The net result is that the action of the funds backing HRR is far more bullish for better priced, higher leverage peers than HRR.

Side note, the funds backing HRR are known for corporate transactions, its possible further assets could be vended into HRR to increase the current limited appeal.

Expand

DFS is 12+m old. $207m NPV assumed POZ of US$1/lb (now US$1.25/lb) and prepared prior to discovery of G lens extensions. Surely that figure's been well and truly superseded now. Thoughts?

HRR Price at posting: 7.1¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

MYX

Mayne Pharma to pay A$33M in class action settlement on alleged US conduct

IBG

Ironbark acquires two Mt Isa projects, notes 2,977 ppm copper at surface

RNX

Renegade uncovers large IOCG breccia system at QLD's Mongoose Deeps

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring