yaleen jv

Helix is an interesting beast.

They have a 30% interest in 83mt @57% Fe, which as per the scoping study has a NPV of around $1b or $300b attributable to Helix.

The project is still only at the scoping stage with a lot more to be spent on bankable feasibilities, capex etc.

However, even if you compare it to companies like IOH, CUL, RHI etc who at somewhat of a similar stage development wise - HLX are only valued at a pittance of their iron ore interest (current market cap at around $7-10m).

Using some comparisons:

IOH ~ are valued at $1 per tonne of Fe (i.e. $240m market cap, 240m Fe).

UMC were taken over at $1.70 per tonne of resource ($204m t/o for 122m resource).

CUL are valued at about $1 per tonne of resources ($25m for 24mt of resource) as part of their JV with Aquila/API.

HLX ~ are valued at around $0.28 per tonne (i.e. $7m market cap, 25m resource attributable to HLX).

I don't hold and won't hold until I see some signs of a re-rating, whatever the trigger may be. At some point consolidation of all the various interests in the Aquila/API/Cullen/RHI/HLX has to happen - which will provide a trigger.

The timetable for that happening though is uncertain at best, the API JV controls the development timetable for the project.

One to keep on the watchlist perhaps.