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First day I haven't looked at the markets this year and wouldn't you know it, I miss an HGD announcement.
Good news and I suspect there will be more of this to come. (i have been increasing my stake holding). However a lot more will be needed to get this share back in favour with some disgruntled investors.
For me a key statement by Peter Atkinson is:
"We are encouraged by results so far and will update shareholders on the
drilling as results become available.
I hope he keeps to this statement/promise, as I personally believe this is one of the reasons HGD has so many sceptics. Take Paddie's posts for instance, even if I don't totally agree I can relate to his comments.(HGD have taken a long time to deliver anything and still have a long way to go!)
The market is results driven and while most investors have a bit of tolerance, HGD is amongst those that have tested many limits.
I have been in the position to be able to hold for a long time and acquire when prices are low, but I am always keen to see company's follow through with their announcements.
HGD is still promising a lot, but needs to actually produce that gold resource upgrade they have been talking about and list MEM as indicated to actually 'walk the walk', rather than just to talk, or at least provide some positive alternatives.
Then investors/buyers will be really interested and start to push the share price up! We need regular activity that are results driven. As commented previously: If HGD can provide evidence of greater resource levels to approx. 3 times existing levels (ie: 600K+oz gold resource) watch this share price multiply many times over.(IMO at least 10X ).
So I agree - this announcement is good news, but there is still a long way to go for Peter Atkinson and HGD.
Many investors will need a lot more substantial news in the next quarterly report to be convinced to buy in! Lets hope the management of HGD makes this happen, especially with the price of gold looking like heading upwards also.
IMO they may just do so, especially with some help for our Trans Tasman neigbours!
Then I will look forward to Broken Hill news a bit later in 2007.
Cheers
BP:)
Crypto Crude
20-01-2007, 03:28 PM
Paddie up 19% for the day.... one trade on friday with a value of $430
Its just a current HTM holder putting upward pressure in SP...
last real trade on the ASX on the 11th... ASX ,19th a micro trade at $10.5 value...
If you hold a large parcel of HTM, whats 19% of $430 and brokage, eg last trade at 4.3cents, just drop your selling point to 4 cents, purchaser of shares gets a discount off the last trade buts its deceptive... and used to trick investors into upwards ramping SP...
which is what happened at the beginning of Jan... there was panic buying, and some people lost alot of money... a nudge and this stock could easily ramp 100% and hold there which is what we all want...
[8D]
.^sc
The extract below is from the HGD website and gives an overview of the potential of the Karangahake resource. For anyone interested you can also read more info by going to:
http://www.heritagegold.co.nz/text/talisman.html. There are some interesting diagrams showing the potential outlook for the area also.
I like the 5mill oz target HGD/HTM has set for this area so lets hope this new drilling program confirms their enthusiasm and outlook on the area.
I think the only people who will be losing money on HGD are those who are looking to sell to early this year. Looking to a resource upgrade in the near future.
Karangahake - Global Field Potential
The Talisman Mine occupies the most southern end of the Karangahake Goldfield and contains all of HTM resources. Exploration away from Talisman is in its infancy. HTM has for several years been gradually mapping, exploring, drilling and assessing the 3.7 kilometre length and 16km2 area of intense hydrothermal alteration associated with this extensive epithermal gold system in preparation of a major exploration effort. We believe that it has exceptional epithermal gold potential. Emphasis in the year ahead will be on exploration of the so far lightly tested targets in this belt away from the Talisman Mine.
Using well-reasoned factors and geological interpretations, we believe a useful working target for the field is 5 Moz. (In line with our duties to properly inform the public, please note HTM is not saying this such resources or reserves exist but rather that the evidence can reasonably accommodate the proposition that it does exist). The distribution of gold targets is shown in a map and diagram under Presentations.
The silicified shear system that hosts the Talisman Mine and the entire Karangahake Field outcrops frequently at surface along the 3.7 kilometres of strike of the epithermal system. At White Rocks a ‘silica cap’ illustrates the proximity of this horizon to the paleo surface at the time of formation and the presence of a hotspring landscape at that time. Many features of the Karangahake Field are in common with the Waihi Goldfield and with other epithermal goldfields around the globe. Because of their geological youth, epithermal fields are generally undisturbed allowing the development of reliable geological models which can be confidently applied between these fields and at Karangahake and other deposits of the Waihi Goldfield.
These models, HTM’s extensive geological mapping and interpretation, and to a lesser extent the pilot drilling by HTM conducted to the north of the Ohinemuri River, indicate about 300m of vertical erosion on the upthrust block to the south of the river. The river itself passes along a major fault. North of the fault the rocks are relatively downthrown by an interpreted vertical displacement of about 100m.
The economic implication drawn from this thesis is that the gold-bearing level reaching to surface at Talisman that has yielded one million ounces of gold and three million ounces of silver, cannot be expected to outcrop in the block to the north of the river – even in the event that it contains similar systems. The northern zone is called Rahu and White Rocks lies on its axial ridge.
This background discussion is important because it indicates strong gold potential in the Rahu Zone. Shallow HTM drilling has intersected significant grades of 6m @ 2.4 g/t Au, 63.6 g/t Ag including 1m @ 7.8 g/t Au, 198 g/t Ag with widespread anomalous gold at surface in road cuttings close to the hole.
The Rahu Zone comprises a significant portion of the 5Moz target HTM has set itself for the Karangahake Field (again please note this is a target only). The diagrams shown illustrate the individual targets as HTM interprets them and are scheduled for drilling.
Jess9
21-01-2007, 12:30 PM
Gold stubborning clawing back up again, $635.40 close - 8.10/oz rise for the day. Nice.
Just noticed I left these two links off my last post.
http://www.heritagegold.co.nz/text/present_talisman.html
http://www.heritagegold.co.nz/text/project_waihi.html
Hi Jess, yes gold price is looking positive and I also note that many ‘experts’ are concerned about the slow down in supply with the lack of production taking place and new mines starting up globally. This must surely push gold prices higher in the long term and be a positive for any explorer with any substantial/proven resource.
There would be some happy HGD shareholders if they could get anywhere near their 5mill oz resource target at Karangahake!
Cheers
BP:)
Gold price steady above US$630 and looking to break the 'shackles' and head higher.
HGD buyers steady and the sellers not wanting to drop their price too much. Sellers this week have stayed close to the 4 cent mark,(so maybe no desperation to cash up).
With a quarterly report due next week it could be an interesting month ahead, however
shareholders need to ask some pertinent questions regarding the MEM IPO and resource upgrade which should coincide. I hope Peter Atkinson and the HGD management have some answers to what is ahead in the next few months!
Keep watching this space if the quarterly is positive.
Cheers
BP:)
Jess9
28-01-2007, 09:21 PM
Gold closed at $644.60, down $3.70 on the day - but still moving in the right general direction! The ASX goldies did not seem to move much last week on this upturn - I guess waiting to see if sustained, or not.
Hi Jess,
So when do you anticipate some news with regards to the MEM IPO and a resource upgrade?
Cheers
BP:)
Fodder
31-01-2007, 04:19 PM
HGD
31/01/2007
QUARTER
REL: 1554 HRS Heritage Gold NZ Limited
QUARTER: HGD: Third Quarter Activities Report
Quarterly Report to 31 December 2006
Mineral exploration company Heritage Gold is pleased to present its quarterly
report for the three months ended 31 December 2006.
Highlights include:
- Rights issue funding completed with over $1 million raised; and
- Drilling underway at Rahu Ridge, Karangahake Project (after quarter end).
The company continues to make positive progress in its comprehensive
exploration programmes using airborne, ground, and computer-aided techniques
to test prospective areas. The following is an overview of the company's
projects.
GOLD PROJECTS (New Zealand) (100%)
Karangahake Project (Rahu, Talisman, and Dominion Knoll permits)
Recently Heritage Gold announced the commencement of a core drilling
programme at the Rahu Ridge area, north of the Talisman mine. The purpose of
this programme is to test the upper levels of the same epithermal system that
hosts the gold deposit at Talisman.
Heritage Gold managing director Peter Atkinson says, "The drilling programme
is designed to test geochemical and geophysical anomalies and is focusing on
areas where gold mineralisation has previously been encountered."
Heritage previously identified gold and silver values at depths of 14 to 46
metres in eight reverse circulation drill holes. The best previously reported
results were from a depth of 10 to 16 metres in hole RC 2 which assayed 2.41
grams of gold per tonne (g/t gold) and 63.6g/t silver (including 1 metre at
7.80g/t gold and 198.0g/t silver).
The 6-8 hole (1,500 metres in total) drilling programme will test anomalies
and mineralisation over a strike length of approximately 1.3 kilometres of
the 2 kilometre long Rahu Ridge zone.
"The Ministry of Economic Development agreed to certain variations to the
Karangahake exploration programme to ensure the optimum programme was
selected for the project," Mr Atkinson says.
Other Gold Projects (100%)
Essential exploration work continues at the Waihi North and Golden Valley
projects.
"Exploration work is likely to result in subsequent test drilling
programmes," Mr Atkinson says.
"We look forward to reporting back to our investors as soon as more
information becomes available."
GOLD & BASE METALS (NORTHLAND, NZ) (100%)
Heritage Gold's permit applications cover areas favourable for epithermal
gold-silver and porphyry copper deposits, as well as gold-rich volcanogenic
massive sulphide base metal deposits.
The geological environments are similar to those in other parts of New
Zealand which are known to be mineralised, particularly the Coromandel
region. In Northland these environments have been significantly under
explored to date.
"The applications are being processed by the Ministry of Economic Development
and Heritage is planning a comprehensive prospecting programme using
airborne, ground, and computer-aided techniques,"
Mr Atkinson says.
THACKARINGA COBALT PROJECT (New South Wales) (33%)
Heritage Gold owns a 33% interest in Broken Hill Cobalt Limited which has
title to the Thackaringa cobalt project. This project is held under an
exploration licence and two mining leases, covering all of the areas of
significant mineralisation.
"Planning is underway for a drilling programme to further test the extensions
of the cobalt mineralisation identified to date," Mr Atkinson says. "The
drilling will be completed by the third quarter of 2007."
MID-EARTH MINERALS
As reported on 14 December 2006 the Mid-Earth arrangements with Mr. Paul
Cranney, Managing Director, could not be finalised and all agreements with
him have been amicably terminated. Mr. Cranney retains no shareholding in
Mid-Earth.
Heritage Gold is seeking a suitable candidate to replace Mr. Cranney and is
continuing to review th
Jess9
31-01-2007, 06:51 PM
Agree, nothing much to discuss in the above. Mind you, it does however confirm that drilling is actually occuring now... a small drilling success could well spin this one round quickly.
Yes, unfortunately this report is just going over old news. This is why HGD has so many sceptics (progress by the management is slow).
Peter Atkinson and his team need to advance progress with the MEM IPO, the Waihi resource upgrade and Thackaringa project quickly, otherwise they will lose any credibility they still have.
On the positive side- they are drilling,- it seems the intention is to still ‘spin off’ the Waihi resource and the price of gold seems to be steady above US$640.
If they get anywhere near their resource target of 5 mill oz for the Rahu Ridge area the sceptics will disappear overnight.
Good luck to all those patient shareholders amongst us.(that includes me!) It looks like we will be waiting a while longer yet!
Cheers
BP:)
PS: another positive was to get some trading volume on the ASX-long may it continue!
Jess9
31-01-2007, 10:21 PM
Hi BAP. Noted the ASX thing to. Also gold price still grinding on up. Not as exciting as the big rises 6 months back, but maybe more supportable.
Steve
02-02-2007, 01:55 PM
quote:Originally posted by BAP
PS: another positive was to get some trading volume on the ASX-long may it continue!
It all seems to have dried up again...
Jess9
08-02-2007, 01:23 PM
Gold over 650 now. Looking like the gold price support level is slowly increasing again.
Also noted Heritage just traded a block of 6m shares at 3c AUS (1/2 cent over recent right issue). That you BAP?? Well whoever...someone just fronted up with 180K AUS for our fav. little NZ based explorer!! Might be a good early drilling result sign? 6m is rather a large trade, in one hit and with respect to the normal weekly trading volume.
Wonder if a 5% threshold will be triggered? Be interesting to know who...
Not me Jess!
It would be nice to know who bought/sold the 6 mill parcel on the ASX today. I think it will be a bit below the 5% mark, so we'll probably never know.
It would be nice if HGD would update their website so we can see how the top shareholders stand after the rights issue etc..
Lets hope this trade is a sign of good news to come!
Cheers
BP:)
My apologies to the HGD team-apparently they have updated the website in the last few days.
Cheers
BP:)
Jess9
09-02-2007, 04:27 PM
Something kicking off now?
Look over ASX trades today - especially after the 6m, XT trade yesterday. Looks like someone new shouldering in with $$, and quite happy to pay "ask" for the privelege. Maybe the long awaited rerate starting, or the beginnings of a takeover...or perhaps just an anomoly?
trackers
09-02-2007, 05:05 PM
good little late surge on the nzx too, 25% for the day
croesus
09-02-2007, 06:27 PM
Not sure what the CEO does with his time..???? still waiting on MEM, HGDCA will die in the ditch in a few months..... if they had the nous to get the S/P moving... HGDCA would introduce a heap of cash for drilling? etc etc..........if it was'nt for BAP and JESSE who would know this co even existed.
disc... lots of HGDCAs that I regret not flicking 6 months back.. would have been better putting the cash into WID.
Understand our comments Croesus!
If I was in the right position I would be looking to take-over HGD due to the lack of action by the present management. Hence I believe other contenders will be considering the same prospect & possibility.
The potential is huge, but we seem to have have a 'lack lustre' management team & CEO.
So it is up to the major shareholders(top 20) to make a change if needed. Maybe this is why a large parcel has been traded on the ASX recently. Just look at the top 20 shareholders- this could be an indication to to the company's future growth-Aussie based!)
As I have a foot in both camps, I think both HGD & WID have the potential to provide shareholders with great returns. However in my (humble/non expert) opinion it will be HGD that provides the best returns this year(2007).
WID management are currently disappointed with investor interest, but have gone about improving their share valuation using a different method than HGD did a few months ago.(albeit maybe a better alternative- that remains to be seen).
I don't believe WID has the same potential as HGD to increase capital gain within the next 6-12 months (assuming) we see the positive news released as indicated by HGd management. ( and that of course -is the risk!)
Mind due if HGD don’t come up with the goods in 2007 it is ‘good bye nurse’ and then we can look for a back door listing by some other hopeful. (penny dreadful!)
I personally believe the recent activity suggests someone is already taking action and will put pressure on PA to get things rolling (or else!) If not there will be a lot of other shareholders asking questions by June, as they will all be on a 'promise' from the rights issue!.
I'm looking forward to HGD being the success story of 2007, but I'm also covering my hunch with a few others. Patience is a virtue and I have plenty(some) of it!
Cheers
BP:):)
Jess9
10-02-2007, 05:08 PM
quote:Originally posted by croesus
Not sure what the CEO does with his time..???? still waiting on MEM, HGDCA will die in the ditch in a few months..... if they had the nous to get the S/P moving... HGDCA would introduce a heap of cash for drilling? etc etc..........if it was'nt for BAP and JESSE who would know this co even existed.
disc... lots of HGDCAs that I regret not flicking 6 months back.. would have been better putting the cash into WID.
Croesus, its darkest before the dawn. Remember 6.3 c is the current strike price, so not far away now - especially with some likely action over the next few months...and at 1-2c/ warrant you maintain 3 times the leverage to any price escalation. That is the other side to your valid concern re time remaining.
Jess9
10-02-2007, 05:29 PM
Thinking on a possible takeover (per recent LARGE XT'S and share purchases in ASX etc)...my only initial concern is of a cheeky offer.
You know the type of smart written offer..."this is fair and reasonable as it is 20% above the market average for the last 6 months etc" probably true if you are talking about some slow and steady company - but not for explorers with money in the bank and drilling exciting targets - towards doubling an existing reserve. I sometimes think the market has forgotton entirely that HGD already has 200K oz resourced.
Back to any cheeky offer...I do however think anything silly would be thrown out, as several of the larger holders I believe understand Heritage's assets to be worth "double figures". Any way lets see what plays out - if anything.
J9
Jess9
10-02-2007, 11:32 PM
Gold up US$9/oz, nice...from Kitco:
SPOT MARKET IS CLOSED
opens in 32 hrs. 32 mins.
Feb 09, 2007 13:30 NY Time
Bid/Ask 666.70 - 668.20
Low/High 656.40 - 670.60
Change +9.00 +1.37%
30daychg +54.80 +8.96%
1yearchg +101.90 +18.04%
Hi Jess9,
Unfortunately the market doesn't seem very interested in the current resource levels of HGD. 200K oz of gold does not indicate a long term mining operation, however if the HGD targets are achieved this could change quickly.
A doubling of their JORC compliant resource levels would bring some respectability to the company and if they can exceed the 500k oz the market will show real interest. (I note that the HGD estimates/targets for the Karangahake Project exceed this several times over). see - http://www.heritagegold.co.nz/text/talisman.html
I would still like to see some progress with the MEM listing. My concern is that, if there is a potential take-over purchaser, they will get hold of other potential assets ( the Thackaringa project) at a very cheap price.
My comment is that - the general market has no idea how valuable this resource could be.
Thackaringa is potentially worth more than the Waihi resource inrevenues even with the price of gold esculating. So why give it away!
The management needs to get the Waihi 'spin off' happening to ensure the potential benefits of both projects are maximised for shareholders.
Looking at the recent share purchases on the ASX, I think there maybe others with the same thoughts, so we need to watch this space and for any news.
I just hope Peter Atkinson has the ability to drive the share price upwards based on the potential of the assets he controls. With a the large shareholding he has in HGD, it should definitely be worth his while and effort.
It would be interesting to know who purchased/sold the 6 million shares on the ASX last week and I'm betting someone has plans for this company and it’s assets.
The closing price of gold yesterday and recent price of cobalt only make the HGD assets seem even more undervalued.
Hang in there Jess the rewards will be great for those of us with patience and foresight! (Just look at the share price of SMM & CDU over the past 12-18 month- sweet dreams!)
Cheers
BP:)
PS: (IMHO-I think PA & the Heritage team already know how much gold they have! That's why PA has more shares now!)
Hi Jess9,
Unfortunately the market doesn't seem very interested in the current resource levels of HGD. 200K oz of gold does not indicate a long term mining operation, however if the HGD targets are achieved this could change quickly.
A doubling of their JORC compliant resource levels would bring some respectability to the company and if they can exceed the 500k oz the market will show real interest. (I note that the HGD estimates/targets for the Karangahake Project exceed this several times over). see - http://www.heritagegold.co.nz/text/talisman.html
I would still like to see some progress with the MEM listing. My concern is that, if there is a potential take-over purchaser, they will get hold of other potential assets ( the Thackaringa project) at a very cheap price.
My comment is that - the general market has no idea how valuable this resource could be.
Thackaringa is potentially worth more than the Waihi resource inrevenues even with the price of gold esculating. So why give it away!
The management needs to get the Waihi 'spin off' happening to ensure the potential benefits of both projects are maximised for shareholders.
Looking at the recent share purchases on the ASX, I think there maybe others with the same thoughts, so we need to watch this space and for any news.
I just hope Peter Atkinson has the ability to drive the share price upwards based on the potential of the assets he controls. With a the large shareholding he has in HGD, it should definitely be worth his while and effort.
It would be interesting to know who purchased/sold the 6 million shares on the ASX last week and I'm betting someone has plans for this company and it’s assets.
The closing price of gold yesterday and recent price of cobalt only make the HGD assets seem even more undervalued.
Hang in there Jess the rewards will be great for those of us with patience and foresight! (Just look at the share price of SMM & CDU over the past 12-18 month- sweet dreams!)
Cheers
BP:)
PS: (IMHO-I think PA & the Heritage team already know how much gold they have! That's why PA has more shares now than he did 3 months ago! http://www.heritagegold.co.nz/text/invest_info.html )
PPS: And thats why I have more shares too!
Hi Jess9,
Hope you're still out there! Things have been pretty quiet since the 6mill trade on the ASX.
Any thoughts on when the next announcement/news will come through?
I'm thinking that it is now 6 weeks since the Karangahake drilling announcement was made, so some news should be forthcoming in the next few weeks. (what do you think?).
The price of gold is crawling upwards and looking reasonably stable at this stage, so it is an opportune time to announce any resource upgrade.
Looking at what has been happening with SMM today(still hold a few, so I'm smiling), I'm hoping for a similar scenario with HGD this year. The resource upgrade will be the key however!.
The HGD management seems very quiet on the MEM IPO, so I quess any progress in this area may have stalled!
Your thoughts would be appreciated.
Cheers
BP:)
croesus
27-02-2007, 10:53 PM
" STALLED"!!! more like dead in the water.........a supine 3 toed sloth could move quicker then this lot
trackers
28-02-2007, 01:36 PM
Good call on the upcoming announcement, pity it was on such a horrible day... But good news nethertheless:
http://www.nzx.com/market/market_announcements/by_company?id=144132
Heritage Gold NZ Limited HGD 28 Feb, 2007, 12:59 MINE Heritage Gold Reports Positive Drilling Results
Full Text of Announcement
Heritage Gold is pleased to announce that core (diamond) drill holes west of Waihi have yielded positive results and identified more widespread gold mineralisation than previously anticipated.
Heritage Gold began drilling at Karangahake in mid-January after consent was granted to test the Rahu Ridge area in late 2006.
Heritage Gold managing director Peter Atkinson says the results to date are encouraging. "The first two diamond drill holes hit strong areas of gold mineralisation within quartz veined rock and lake sediments. The results indicate there are broader areas of gold than previously anticipated."
"We are satisfied with these preliminary tests, and hope subsequent drilling will provide similar encouraging results, as the gold values may well improve at depth."
Drilling to date has centred around three parallel structures, spanning a strike length nearly 2 kilometres long. The 6 to 8 holes to be drilled will help determine whether the Rahu Ridge zone is part of the same epithermal system that produced gold deposits at the Talisman mine. The Talisman mine contributed significantly to the more than 1 million ounces of gold and 3 million ounces of silver that was produced from the Karangahake mining centre up to 1992.
Today's report covers the first 2 holes drilled at Rahu Ridge. Another four to six holes will be drilled and updates provided to shareholders in the next few months.
Drilling in Hole 1 identified a strong zone of gold mineralisation with an interval of 1 metre showing 1.38 grams per tonne (g/t) gold from a depth of 16 metres, within a broader zone of 32.15 metres (at hole depth 13.85 to 46.0 metres) that averaged 0.64 g/t gold.
Hole 2 identified up to 4.15 g/t gold and 33.5 g/t silver (Ag) over 2 metres at a hole depth of 37 metres, within a broader zone of 24 metres (hole depth 36.0 to 60.0 metres) that showed 0.93 g/t gold and 13.9 g/t Ag.
A full report of the drill tests is attached as an appendix to this announcement.
For further information please contact:
Peter Atkinson
Managing Director
Heritage Gold
09 303 1893
021 630 463
trackers
28-02-2007, 03:17 PM
Heritage is leading the charge on the NZX, good to see..
Unfortunately, it looks like a lot of people put in big sell orders overnight, so HGD is not able to do a nice rise... If these people see the announcement, realise their mistake and pull the sell orders off I think we'll be looking good
Jess9
28-02-2007, 07:31 PM
Approx 10% rise on both markets on good solid volume (900k ASX and 500k NZX)!
As you say Trackers, against a 3% market drop...not bad.
I feel HGD is about to really liven up over the next few months, recent up'd trading volume makes me wonder something is in the wind?
Well that's a nice teaser for the end of the month. There is nothing like a bit of good news to get your hopes running high! The 6mill trade earlier this month on the ASX gives me confidence that this is not just 'pie in the sky stuff' and good volume today after the news release. Hopefully some people will start looking at this share with a little less sceptism, although there is still a way to go for the management to prove the underlying value.
The next month or so will be interesting leading up to the quarterly report. I look forward to a significant resource upgrade, which seems like it will surely surpass previous expectations after todays news and hopefully some indication with regards to the MEM IPO. The target resorce level for the Karangahake area is 5mill oz of gold according to the website, so maybe there will be a nice reward for all us patient shareholders in the near future.
A significant increase in JORC compliant resource levels sould see this share re-rated on both the ASX & NZX very quickly and just maybe we will see the price hitting double digits and higher before we know it. Hey, I never anticipated my SMM shares to be over $5 in 2007, so why not a double strike with HGD.(sweet dreams!)
Cheers
BP:)
PS: Will be watching for further news regarding the Broken Hill Cobalt project also with cobalt prices on the rise(almost double in recent months)and world wide demand increasing with no increase in supply-Could be good times ahead for HGD in Aussie also! For some info go to: http://www.formcap.com/s/CobaltNews.asp
Just pondering over the info from the link in my previous post above http://www.formcap.com/s/CobaltNews.asp and a few points come up for consideration!.
What is the underlying value of the 33% stake HGD holds in Thackaringa Cobalt/Broken Hill project in New South Wales?
HGD estimate a cobalt resource level of 33 million pounds in the project/exploration area, so at today’s prices of around US$25-$30, that is a lot of revenue potential.
According to the article, there is a need for new supply to meet current global demand for cobalt and this is only going to increase as shown in some of the charts.
The main shareholder in HGD is Southern Cobalt(So Co NL), so I would assume they have a vested interest in the success of this project. Maybe the large parcel of shares purchased on the ASX had more to do with the potential in this area. There has been suggestions by management that they are considering an IPO on the ASX with regards to the Thackaringa project.
Combine this with further good news from the Karangahake Project with regards to resource levels and we could have exciting times for the share price. If the gold resource at Waihi was upgraded to over 500-600k oz, the potential revenues from this area would also be substantial.
If HGD is to extract full value for the two resources I believe it will be essential for the MEM IPO to proceed and Thackaringa to be listed on the ASX.
At least ther is a bit more interest being shown by the market now!
Cheers
BP
Jess9
01-03-2007, 01:32 PM
Looking at trade pattern/volume today - looks like an investor sucking up Heritage shares, but trying not to show his hand. Or am I imagining things?
Hmmme takeover on the horizon, or just a few taking larger positions/exposure??
trackers
01-03-2007, 01:51 PM
quote:Originally posted by Jess9
Looking at trade pattern/volume today - looks like an investor sucking up Heritage shares, but trying not to show his hand. Or am I imagining things?
Hmmme takeover on the horizon, or just a few taking larger positions/exposure??
Too much sell side resulting from the China news....This amount would have shifted the price quite a long way on another day
Hi Jess,
Don't know about a takeover, but a re-rating of the share value looks like it starting to take place on both sides of the Tasman.
Cheers
BP:)
Jess9
01-03-2007, 06:18 PM
Wow, Wow, Wow!
Looking at trades and depth and price - we're off with a roar, finally!
The drilling must be proving "the talk" is quite likely to turn out to be near the mark. Wonder if a local miner wants to lock in nearby additional resource potential?
10c next stop before a breather?
HGDCA for those holding, may get very valuable very quickly.
Jess9
01-03-2007, 08:01 PM
Here is conspiricy theory (be warned)...today NZX 2 large trades taking the share to 5c. ASX 4 to 5 large trades. That on back ground of red ink, looking at others today. Therefore if buying is not on sentiment,it must be based on some harder information...hence takeover theory ; )
Also remember 6m XT a week or so ago, and the change in interest levels (see up in total volume in last week or so). Like I said above, someone trying to quietly accumulate without forcing up the price?
Lets watch this space - probably be proven wrong, but you never know, if its genuine my guess is 10c may look cheap in next few months!!
Jess9
01-03-2007, 08:18 PM
Last point on above, also noted no big buyer bids sitting in buy depth...rather someone is happy to bite sellers (and swallow hole) when a largish block gets placed etc. Hmmme...
Hi Jess,
Approx 60% of the company is held by the top 20 shareholders, so any take-over bid is going to need the support of some of this group to get the numbers a take-over would require. I think the price will have to climb a lot higher than 10 cents to interest any of this group in selling out just yet.
As I indicated in my previous posts today I believe the underlying value of the Thackaringa Cobalt/Broken Hill project & Waihi/Karangahake resources far exceeds the present share price. It isn't hard to identify the revenue potential with current gold and cobalt prices readily available, deduct the production costs and establish an earnings potential that could see this share follow a similar price 'hike' trend to SMM or CDU.
If the resource levels are confirmed then separate IPO's for both projects will increase shareholder wealth even further, especially with an ASX listing of Broken Hill. You can see by the trading volumes in mining stocks how much the Aussies love these mining stocks and any god news will see the price double easily.
While 10 cents will be a great step forward, IMO the price will leap ahead further if any of this comes to fruition or lets hope so anyway. I'll look forward to watching the trades over the next few weeks.
Cheers
BP:)
I see that Newmont have entered into a joint venture with Glass Earth, according to today's NBR. Maybe you are right Jess, there could be more to the recent trades and upswing in price than 'meets the eye'.
Cheers
BP:)
Jess9
05-03-2007, 08:22 PM
very good volume again today, with firm price - considering market...must be Newmont buying in at bargain basement prices.
Year of the Tiger
05-03-2007, 09:06 PM
A bit of a ground-feeder here. Picked up a few more. ;)
Chippie
05-03-2007, 09:07 PM
http://www.sharechat.co.nz/news/scnews/article.php/5551cb9d
An interesting article "Is mineral exploration a risky business?"
croesus
05-03-2007, 09:34 PM
Jess your very good volume was still less then $30 k on both bourses, Newmont would spend more then that daily ( well maybe a slight exaggeration) on supplying morning tea for all its workers I would suggest.
Jess9
05-03-2007, 10:17 PM
Hi Croesus, you are likely right, however maybe those Newmont workers will go without their company biscuits tomorrow ; )
Whats a few mornings without biscuits, if you get a job for another 20 years - as Newmont can carry on digging out their Martha wall into the adjoining Heritage permit, then move on to Talisman and Golden hill?
PS Good to see some new voices here also - thanks for the input guys.
PPS Who ever is buying is very lucky with the timing of the markets -they would have paid more already for the volumes to date. Mind you, if they want more, short term holders will dry up shortly (my guess) - unless the price gets a little more real $$.
You hit it right on the head Jess!-
Newmont -just carry on digging out of your Martha wall into the adjoining Heritage permit, and move on to Talisman and Golden hill? (the locals know where the gold is!) and I'm picking the Thackaringa project has plenty to offer also. (33,000,000 x US$30 = lots of revenue even when you divide it by 3, and cobalt doesn't cost a lot to dig up compared to other resources! )
Good prospects ahead and not much longer to wait, by the look of the increased trading!!
Might think about selling once they pass $1.00 (do you have a value in mind Jess?).
Keep smiling & dreaming
Cheers
BP:):)
PS : Good article Chippie-pleased to hear a new voice!
croesus
06-03-2007, 07:01 AM
Jess and Bap, on reflection my last post read more negatively then intended.... I agree it seems that some entity has been acquiring HGD on both sides of the Tasman... hopefully Newmont... the next 3 months will be interesting.. espicially so for the long suffering HGDCA holders...
Hi Croesus,
Hopefully some good news will unfold over the next few weeks to signal the turn around for HGD.
A resource upgrade will be instrumental in the re-rating of the share price and I believe the drilling news released a week ago, along with the large buy up on the ASX earlier in Feb indicates something positive is about to happen.
I just hope that shareholders don't sell out to quickly if there is a spike in the share price. If you've held on this long what's a few more months if the sky's the limit! Resource shares have been known to jump from 6 cents to $6.
Fingers crossed HGD can follow a similar trend! ( close to $1 by the end of 2007 if the news is good)
Cheers
BP:):)
basil
06-03-2007, 11:01 AM
Cant see why the SP has held up so well when shares were issued recently at AU2.5c and the Rahu drill results have been pretty uninspiring so far. The best result was up to 4.15g/t au over 2 metres - but what does that actually mean. Not really looking near economical yet. Plus gold price has just tumbled to $US635/oz. Most likely some optomistic individual is acquiring. This share has promised then not delivered for decades.
Basil- 'Every dog has it's day' and I think that day is getting closer for HGD shareholders!
Also I don't think there would be too many individuals who would go and buy 6 million shares in a company without a bit of research being done first.(thats not optomistic-thats a fool!)
I think about 2 million more shares have changed hands since that transaction also, so this suggests renewed interest IMO.
Maybe a bit more research is what is required and if you've invested in junior explorers before you will know that it is sometimes a bit of a waiting game with lots of risk in the early stages and lots of reward if the resource levels are significant and able to be mined.
Cheers
BP:)
basil
06-03-2007, 06:01 PM
BAP the purchaser of the 6m could have bought them from the subscription shortfall a couple of months later at half the price so both optimistic and fool may apply.
Your right though more research is definitely required with a penny dreadful like HGD, including a little history. Their predecessor at Karangahake Southern Cross Mining Ltd tried for 20 odd years to develop a mine there. Ramped to $5 plus at one point before crashing to 0. In its last stage it was a con perpetrated on overseas investors and most NZ investors probably got out at a profit on the way up. Obviously not the same situation with HGD but over the years SCM promised success just round the corner for this area but never delivered
But gold prices are high, mining techniques have improved and gold is certainly there so maybe HGD will be the exception. Good luck.:)
Hi Basil,
Thanks for the info regarding Southern Cross mining, I was completely unaware of the history! (must be too young to remember that far back!-ha ha)
It's great to have another contributor to this forum topic, so let us know your thoughts!
Are you a HGD stakeholder?(I see a similar name in the top 20 stakeholders?)
Cheers
BP:)
Jess9
06-03-2007, 08:07 PM
quote:Originally posted by basil
Cant see why the SP has held up so well when shares were issued recently at AU2.5c and the Rahu drill results have been pretty uninspiring so far. The best result was up to 4.15g/t au over 2 metres - but what does that actually mean. Not really looking near economical yet. Plus gold price has just tumbled to $US635/oz. Most likely some optomistic individual is acquiring. This share has promised then not delivered for decades.
Hi Basil.
On not looking economical...HGD already has 200k oz of gold and 800oz silver resource in this area, so I guess the early drill results indicate that the immediate area does support a wider resource level, and therefore may contain a potential million oz plus resource, as discussed in past reports.
On value...the current JORC resource and quality of Waihi permits significantly justify a higher current price, therefore the current support is nice to see, but not unexplainable, and likely to go much further, if better grades are hit in the next drilling.
On trading volume...I repeat above comments in that the recent on market interest in HGD is notable on two points; 1. the 6m XT 3-4 weeks ago, and 2. the increased daily volumes since this trade on both Xchanges, indicating the position is being quietly added to.
The initial 6m trade ($180K AUS) to me indicates a potential suitor/partner rather than just investor. Why? Because $180K AUS is alot of $$/risk for a small individual to invest s/term in one small spec company...and HGD is too small for a large investor,with respect to HGD's past trading liquidity, i.e. low. No fast "ins" and "outs" at that share volume level. Therefore I propose the 6m parcel XT was only a first step to gaining more, towards partnership/takeover/asset strip.
PS And as BAP has stated, HGD also holds 1/3 of Broking Hill Cobalt company...what is this worth, per HGD share? Maybe HGD is a backdoor to grab BHC? But now the caffiene talks, and I go too far ; )
Hi jess,
I think your being kind to me, I'm usually on the wine(caffine thru the day) when I think about the Broken Hill potential. Hope I'm proved right one day, just remember the old adage about supply and demand.
How many things run off a battery powered source these days?
Batteries have cobalt ingredients and this includes electrical cars /forklifts, your mobile phone and lots more toys etc.. at US$30 per pound and heading higher the prospects for Broken Hill, makes me want to buy more HGD shares.
However I already have a huge stock pile and need to diversify a bit more. SMM is doing well already, so maybe I'll just stick with WID and HGD as penny dreadfuls>
Good to see a few more contributers this week, looking forward to good news in the quarterly report!
Cheers
BP:)
Another solid day on the ASX for HGD. The signs seem to suggest that someone is accumulating on that side of the Tasman!
Cheers
BP:)
PS: It's all that cobalt they have stored at Broken Hill.
basil
09-03-2007, 05:50 PM
BAP not a current holder. The last drill result was too vague. But still keeping an eye on it as one of the few possible NZ mining investments and could buy in if they come up with some better test results. Jess they may have an inferred resource of 200k oz of au but are the concentrations economic - I don't believe so and can't see how the recent increase in SP is justified.
stephens.pc
09-03-2007, 05:56 PM
http://www.directbroking.co.nz/directtrade/dynamic/announcement.aspx?id=1543828
Bit of a reshuffle of the board. Any thoughts?
Jess9
09-03-2007, 06:29 PM
Wow, a real shakeup! New blood at high levels to drive HGD forward. So who is this international next chief - to be found/named in a few weeks? Hmme something's afoot!!
Jess9
09-03-2007, 06:37 PM
500k went through shortly after...on asx today - at between 4-4.2c. AUS likes that announcement.
My thoughts for what they maybe worth.
We will see a Broken Hill IPO (ASX listing only) before end of year, probably much sooner. HGD will will be taken over by a well established mining company. The new Managing Director they are looking for will therefore be primarily responsible for the Broken Hill listing. No need for a spin off of Waihi resources in this case and no need for MD in New Zealand if takeover in the wings.
Make's sense to me and good business by incoming management. This will happen quickly and I'm sure cobalt resource levels at Broken Hill look positive to get some Aussie investors wanting a piece of the pie and the prospects of better resource levels at Waihi must be enough for a mining company to want a share.
Interesting times ahead.
Anyway some of the HGD sceptics on this thread have got what they wanted-a change of management from the top. Lets hope it all ends positively for all HGD shareholders.
Your thoughts anyone!
Cheers
BP:)
basil
09-03-2007, 08:15 PM
3 directors + the chairman leaving - probably new blood is needed after 22 years with little achieved but who jumps ship when success is on the horizon ?
Jess9
09-03-2007, 08:57 PM
Success measured in $$ Basil, will be made by this change. As you've said, it simply doesn't happen just by waiting. 22 years...no the Board and management make success.
Maybe the "new" 6m+ shareholder is behind this, or was that XT and subsequent leap in weekly volumes, mere coincidence. I fully expect upward buying pressure to continue unabated!
People jump ship when they are encouraged too by others! -and when there is motivation by 'others with power' to create wealth and succeed.
I've done the same myself and made it easy for others to step done without fuss for the long term good of a company. Even when the potential signs show good prospects. I suspect similar steps are happening here, for the long term good of HGD or it's successor.
We will have too wait and see if this is potentially a good sign for shareholders. I suspect it wil be!
There will be more news to follow over the next month leading up to the quarterly report.
IMO watch the ASX carefully!
Cheers
BP
Year of the Tiger
09-03-2007, 09:53 PM
quote:Originally posted by basil
3 directors + the chairman leaving - probably new blood is needed after 22 years with little achieved but who jumps ship when success is on the horizon ?
Heritage Gold's managing director Peter Atkinson, who has been with the company since its inception in 1985, has indicated his intention to resign from his position when a new managing director is appointed.....
Founding independent director David Williams and director Ralph Stagg have also advised their intention to resign.
In addition, Geoffrey Hill is to replace Murray McKee as Chairman, with effect from today, and Mr McKee will assume the role of Deputy Chairman.
Mr Hill says Heritage is undertaking a global search for a managing director. "We expect to fill the position within a matter of weeks." (That quick huh???)
"Meanwhile we have several new opportunities under active consideration as we implement our strategy for Heritage."
I think Basil, you may already know the answer to your own question...
Is it really a matter of jumping ship or being persuasively nudged?
YOTT
You got it YOTT and thats why we should watch carefully and hold onto our shares for the next few months. Times are a changing-hopefully for the good!
I stick by my post above, due to this line"
"Meanwhile we have several new opportunities under active consideration as we implement our strategy for Heritage."
Cheers
BP:):):)
Jess9
09-03-2007, 10:24 PM
Peter A. has a substantial personal share holding in HGD, he would not be moving out of such direct control, unless he knows the change makes $$$ as well as sense ; )
steve fleming
09-03-2007, 10:27 PM
Sounds as though Geoff Hill (largest s'her in HTM with 19.9%) has finally had enough of the old guard.
Geoff is a very very impressive guy for those that don't know:
http://www.pittcapitalpartners.com.au/our_people.html
"...He has participated in the successful flotation of over fifty Initial Public Offerings (IPOs) in Australian and international equities markets and facilitated raising in excess of $A1.0 billion in new issues and capital raisings...."
Definitely interesting times ahead
Jess9
09-03-2007, 10:52 PM
Hi SF.
Just from memory GH's shares are indirectly held, via a third company, which also owns the other 2/3 of Broken Hill Cobolt. So are takeover plans driven for full control in Broken Hill not Waihi permits?
The plot thickens...or at least something does : )
My thoughts too Jess!
Your catching on guys! This could be fun and Prosperous!
Cheers
BP;)
Jess9
09-03-2007, 10:58 PM
Geoffrey G. Hill B.Econ (SYD), MBA, FCPA, ASIA, FAICD
Geoff specialises in the field of corporate financial advice, mergers, acquisitions and restructuring. He has been the Principal adviser or participant in over two hundred mergers and acquisitions. This includes managing Bancorp Holdings Limited, Morgan Grenfell Group, International Pacific Securities, Geoffrey Hill & Associates and Pitt Capital Partners Limited. He has participated in the successful flotation of over fifty Initial Public Offerings (IPOs) in Australian and international equities markets and facilitated raising in excess of $A1.0 billion in new issues and capital raisings. Geoff has been a member of the Securities Institute of Australia since 1969. He has considerable experience in the European, North American, Asian and Australian sectors having lived and worked in London, New York and the Asia/Pacific region.
Hmm...
Would like to see the top twenty shareholder list updated on website. I think there might be a few changes since January 31st, but not enough to signal a significant change (??) to existing stakeholders.
Jess did warn us all.!!
Keep watching this space!
BP[}:)]
PS: Broken Hill has always been the the diamond(cobalt) amonst the gold!
[quote]Originally posted by BAP
Would like to see the top twenty shareholder list updated on website. I think there might be a few changes since January 31st, but not enough to signal a significant change (??) to existing stakeholders.
Jess did warn us all.!!
Keep watching this space!
BP[}:)]
PS: Broken Hill has always been the the diamond(cobalt) amongst the gold! (SO CO NL major shareholder also-check out his co!)
steve fleming
10-03-2007, 01:18 AM
quote:Originally posted by Jess9
Hi SF.
Just from memory GH's shares are indirectly held, via a third company, which also owns the other 2/3 of Broken Hill Cobolt. So are takeover plans driven for full control in Broken Hill not Waihi permits?
The plot thickens...or at least something does : )
Hi Jess,
I am pretty sure GH would'nt be taking control unless he had some intersting plans in mind.
He'll be wanting to increase the scale/market cap of HTM/HGD, either by backing in the balance of Broken Hill cobalt, or possibly some other projects into HTM/HGD....and with Far East Capital on board, supporting the last placement, HTM certainly has access to funding to support any acquisition.
as others have mentioned, will be interesting to watch the trading volumes to see if insiders are getting set.
Cheers
Jess9
10-03-2007, 10:48 AM
Steve. Maybe GH is planning to takeover HGD in order to flick off the Waihi permits (what was to be split of into MEM etc) for a good cash profit - likely to Newmont considering obvious synergies and then as you say combine ownership one way or another of Broken Hill, and capitalise this one ASAP.
Maybe, considering Peter's apparant blessing for the big changes, HGD will surge up and become the full holder/operator - rather than being asset stripped and deregistered. I guess it depends where the greater value actually is. Regardless of the detail of what is to occur, the value of HGD is well above 4.7c/share, or none of this would be smoking up!
Thinking back to NOG/NZO...HGD OVER THE LAST MONTH is finally starting to have the feel of NOGOC just before we all had months of surging increases. Lets hope so, I bought into HGD (maybe a little TOO early with hindsight - YES Paddie) but seeking just such a ride!!
Blatent emotional ramp coming...so..lets blast off $$$ and have one hell of a ride!!!
Jess9
10-03-2007, 12:29 PM
Last sentance of announcement yesterday, fueling above speculation...
“Meanwhile we have several new opportunities under active consideration as we implement our strategy for Heritage.”
Looking forward for HGD, I think the interesting points to consider from the recnt announcement are:
Mr Hill says Heritage is undertaking a global search for a managing director. "We expect to fill the position within a matter of weeks."
They couldn’t find an MD for the proposed MEM IPO after 6 months of head hunting, so if they expect to fill this position within a matter of weeks, I suggest they must have someone in mind for the role already and it spells a new strategy/direction for the company.
This leads on to the point of interest.
"Meanwhile we have several new opportunities under active consideration as we implement our strategy for Heritage."
IMO this suggested greater plans for the Thackaringa project (Broken Hill).
If this is the case and the MEM IPO has been removed from the agenda, it looks like the Waihi permits will be sold off once the new resource levels are confirmed.
It will be interesting seeing what unfolds over the next few weeks, but for a change it looks like things may move a little faster than normal.
Cheers
BP:)
Jess9
11-03-2007, 01:38 PM
Hi BAP, I agree with your thought above it is also confirmed by looking at a HGD share price to time graph, looks like trend is establishing going up on decent volumes. So we may actually be right!
If so, as shares can do - we may get a serious and sharp re-rate soon. This will be a nice payoff for reasearch and risk taken to date.
10c on volume and I think we could be assured on new direction.
Fingers x'd then : )
Jess
Mr Geoffrey Hill who took over as Chairman of HGD yesterday is also an Non executive Director of Rundle Capital Partners who were the Underwriters for the Rights Issue last year. He is also the Chairman of Pitt Capital Asia.
http://www.rundlecapital.com.au/board_of_directors.html
http://www.pittcapitalpartners.com.au/directors.html
I suspect (IMO) that Southern Cobalt will be behind this move for change and that it is primarily in preparation to list the Thackaringa Cobalt project.
Do you know if he is a shareholder or Director of So Co ???
(sounds like he might be, after reading some other posts)
With the recent trades on the ASX I wonder if it was initially a numbers game to gain support for change from other top shareholders?? The change is sudden and swift with no hint of this in other recent announcements.
Anyway as I have commented cobalt is looking likely to skyrocket in price as demand increases, with no new supply chain on the horizon to satisfy this demand.
http://www.formcap.com/s/CobaltNews.asp?ReportID=171554&_Title=Targeting-a-Tight-Cobalt-Market
Have a look at the varied usage of cobalt and the amount of demand as global technologies change.
At US$30 per pound this makes the Thackaringa area with a lot of $$$, especially with the price per pound likely in increase.
Jess if any part of our conjecture is correct then I think 10 cents per share may be an understatement . HGD is already undervalued and we could well see a huge leap in the price if this is correct and we see a Waihi resource upgrade to coincide with a sell off. (those warrants will start looking pretty could also).
According to the perviously drilling announcement there would be an update in a month and with the quarterly report expected at the end of April, along with a new MD announced in a few weeks, we should have plenty of info to digest of the next month to 6 weeks.
Could be very exciting!
Cheers
BP:):):)
Jess9
12-03-2007, 01:25 PM
ANNOUNCEMENT
MINE: HGD: Heritage Embarks Upon Uranium Exploration Initiative 12:14pm
HGD
12/03/2007
MINE
REL: 1214 HRS Heritage Gold NZ Limited
MINE: HGD: Heritage Embarks Upon Uranium Exploration Initiative
HERITAGE EMBARKS UPON URANIUM EXPLORATION INITIATIVE IN THE NORTHERN
TERRITORY
Heritage Gold has signed a binding Heads of Agreement (subject to due
diligence) in relation to an offer to enter a joint venture to explore for
uranium in the Dunmarra Basin of the Northern Territory.
Under the Agreement, Heritage Gold will pay A$10,000 to the licence
applicants before the end of the 30 day due diligence period and will have
the right to earn up to 50% interest in the tenements by the expenditure of
A$2M over three years from granting of the licences. Heritage may increase
its interest to 75% upon the expenditure of an additional A$2m, depending on
the election of the vendors to contribute or dilute.
The tenement numbers are Exploration Licence Application (ELA) 25871 covering
377sqkm, ELA 25872 covering 460sqkm, and ELA 25921 covering 419sqkm. The
licence areas are considered prospective for sandstone-hosted and roll front
uranium mineralisation.
Upon satisfactory completion of the due diligence, Heritage Gold will issue
2.5M fully paid ordinary shares to the vendors immediately, and a further
2.5M fully paid ordinary shares on granting of the licences. The minimum
expenditure commitment of the Company is A$100,000.
A placement of shares is planned to sophisticated and professional investors
to fund the investigation of the uranium proposal, advance further
exploration on Heritage Gold's current projects, and for working capital.
The Company is seeking to place up to 20M shares at a price of A3.5 cents for
each fully paid ordinary share.
The first tranche of 8.5M shares in the placement will be issued under ASX
Listing Rule 7.1, NZX Listing Rule 7.3.1, and NSX Listing Rule 6.25. The
second tranche of 8.5M shares will be issued subject to shareholder approval,
and a meeting will be called for that purpose.
The placement will be managed by Montagu Stockbrokers of Perth for a fee of
5% of funds raised.
For further information please contact:
Peter Atkinson
Managing Director
09 303 1893
021 630 463
__________________________________________________ ___________________________
____________
About Heritage Gold
Heritage listed on NZX in 1986 and has a current market capitalisation of
approximately $9 million. Heritage is also listed on the ASX and the National
Stock Exchange of Australia (formerly Newcastle Stock Exchange). The company
has valuable gold interests in the Waihi district of New Zealand, where it is
a major tenement holder. Heritage also owns 33% of Broken Hill Cobalt Ltd in
Australia and has applied for permits to prospect for gold, silver, copper,
and base metals in Northland, about 150km north of Auckland.
End CA:00144685 For:HGD Type:MINE Time:2007-03-12:12:14:17
© Direct Broking Limited 2005.
Help | Site map | Terms and Conditions | Security | Disclaimer | Site and trading system by TSL
Jess9
12-03-2007, 01:31 PM
...initial re-action is very positive - over 800k traded in AUS with 12% rise, and 17% rise on NZX!!
Lets see where this will go then : )
Jess9
12-03-2007, 01:38 PM
Make that 1.4m traded on ASX and price rise holding...nice keep going my girl : ) warrant volume may yet resurrect!!
The 3.5 c AUS placement could be made higher one wonders...
Fodder
12-03-2007, 01:46 PM
quote:Originally posted by lager
They should diversify, go for Uranium like Summit Resources (Ex-Gold). Just call themselves Heritage Miners or anything but Gold.
:DGood idea Lager...someone from the Company must have read your post back in November...and just look at what the magic U word can do for a share price:D
Jess9
12-03-2007, 01:51 PM
Wait till they read all the current posts then - orbit ; )
1.6m now traded in AUS.
trackers
12-03-2007, 01:59 PM
Did not see that coming [:o)]
picked some up on the asx :)
croesus
12-03-2007, 02:11 PM
Picked up 120k when the mkt opened... wait till the Cobalt gets the go/forward
Well that's a nice surprise for the day. Combine this with friday's announcement and it definitely looks like someone has some much bigger plans for HGD.
Your right Croesus, once that cobalt resource takes off there's no telling where the share price will end up.
We now hold shares in a company that has a diversified range of resources. Management had indicated that they did not want to limit themselves to gold exploration and I quess this shows us where the company is heading.
Also it looks like they want to move things along quickly and I for one will look forward to more of this type of news over the next month or so.
Plenty of interested investors on both sides of the Tasman by the looks.
Cheers
BP :D
I.T.Ancient
12-03-2007, 04:13 PM
Well this should be fun to watch - for young folk.
Thars Gold in tahm tahr hills - 21 years.
Thars Uranium in tahm tahr hills - ? years.
Times, they're a changing!
Friday's announcement was just the first step towards a new look HGD and it looks like there maybe plenty more changes to come based on today's.
Nothing stay's the same and it seems evident from the volume of ASX trades over the past month that someone else has bigger plans for our 'junior explorer'.
For a change-I think we can safely say "we won't have to wait too long".
A matter of months rather than years-fingers crossed!
At least we have some interest in this share now!
Cheers
BP:)
etrader
12-03-2007, 06:19 PM
Well good to see HGD enter into the heads of agreement with a Uranium tenament. Notice that HGD is trading ahead of the nz close when you convert the dollar, this has moved up since the nzx closed. Hgd has been going nowhere for years, maybe the change in board despite Peters long serve on the board, could put new blood into the company. Will be interesting to follow the "U" now in the gold of this company. The stock is now up 40% near close of trade in oz compared to about 27%, with the cross over trading at 6.5c converted. the "U" has just added several million to the cap of the stock.
Disc: Holder
Jess9
12-03-2007, 09:28 PM
Awesome - HGDCA back "in the money". And nicely leveraged to the next three months proceedings.
Getting happier Croesus?
croesus
12-03-2007, 10:09 PM
Only mildly happy.........when HGD gets to 10c.. I won't be so grumpy....what really piss'ss me off is that we have had a rampant commodity boom for almost 3 years and the managementof HGD have had less nous, in fact less nous then a group of bearded hand wringing grey shoe wearing school teachers ... and thats saying a lot... we have had the MEM debacle, the still possible HGDCA ****up... the weasel words the going forward platitudes, the pie in the sky Cobalt bull****... what the hell has management done in the last 3 years but bank their pay checks ????
I purchased a few today... 120 k because I hope the new management has a bit more go forward........ I trust there will be no dissapointment forth coming.
cheers Croesus.
Ps buy some WID before they go ex the 100/1 warrant option package.
etrader
12-03-2007, 11:46 PM
The underlying assets have always been reasonable for HGD and as the gold value has gone up so would you expect the value of HGD to increase but it has been on a slow decline for some time now. Reading the management changes it looks like the cupboard has had a good shake out, all they now need is a king pin leader to expand on the underlying assets, i note in a recent report that they won't spin off the gold division to a seperate listing. Don't know anything about Colbolt apart from a 33% holding in a company. Uranium is the growth area for 07 and the supply shortage based on the number of plants been built worldwide and the flood at Cigar in Canada have put pent up demand on this commodity. Lets hope that over the next few weeks the HGD comes out with a good new CEO, has more positive drillings and put some confidence back for investors, also note they are issuing shares in exchange for uranium rights.
Where to investors put this stock short term, will it hold around .06c max now or is there a little upside left in it.
Below is the article in "The age" in oz so that's good they have got exposure in the oz papers, this will be helpful for exposure to day traders also who will get in on the "U" in the company.
Article in both "the age" and "SMH" which will get good exposure
http://www.smh.com.au/news/Business/Heritage-gold-in-NT-uranium-venture/2007/03/13/1173722409294.html
Heritage gold in NT uranium venture
Email Print Normal font Large font March 13, 2007 - 6:39AM
Advertisement
AdvertisementListed mining explorer Heritage Gold is to explore for uranium in Australia, having spent 20 years looking for gold in New Zealand.
Listed on both sides of the Tasman, Heritage finalised a deal Friday under which it is carrying out due diligence on a joint uranium exploration venture in the Northern Territory.
Managing director Peter Atkinson, who resigned on Friday but is staying on until a replacement has been found, told The New Zealand Herald the uranium venture was "a chance to broaden the explorer's approach to mineral searching".
The Australian syndicate had applied for licences to explore areas potentially holding the type of deposits that had produced more than 80 per cent of the uranium mined in the US, Mr Atkinson said.
Heritage will continue gold exploration in NZ, and a fortnight ago announced it had found strong evidence of gold at a site west of Waihi.
Jess9
13-03-2007, 12:46 AM
I suspect 10c is quite achievable very soon, as you say underlying assets are more valuable now than 12 months ago - when it was trading sluggishy at 6-6.5c. With a new Board and MD and diversified path, gold/silver, cobolt and now U, this one must have legs yet. A few more positive announcements along the way and we could go much higher, especually when investors re-look at the coy assets and add together the significant board/management change. If volume keeps up, maybe we even see some day traders in!!
May need a name change...suggestions?
Summit, oh no - thats been taken, how about Peak Resources? ; )
It will be interesting to see how the share price holds up over the next week or two. I think it will depend on investors on the ASX. Your right that HGD has been undervalued by the market, but this is partially due to opportunities not being realised.
So can the new management turn things around and regain investor confidence?
If the promised resource upgrades are confirmed in the next month or so, it should be easy to keep the good news flowing and the share price will follow. I suggest 10 cents can be surpassed easily if the markets gains some confidence in the management.
HGD is an explorer with great potential, hopeful someone on the board can take the lead and make the most of their resources. The new MD may by the key to this!
I thought the article in the Herald today could have read better!
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10428467
Still it's alot more fun when there's something positive happening.
Cheers
BP:)
etrader
13-03-2007, 09:30 AM
Jess: Some existing shareholders should email the head office here office@heritagegold.co.nz and put suggestions in or at least ask if they are considering name change now they have a diversified mineral base. Middle Earth Uranium or code MEU could be one.
Bap: The article in the paper wasn't to hyped up which is good, we've seen a lot of stocks spike up say 200% in days, and straight down again, if we could have the stock hold around .06c short term and get the volume driving up, keep good announcements coming when appropriate then naturally the underlying assets when proven should help to push the stock price up. I hope they don't just promote someone on the old board again as that will not put fresh blood into the board. It needs a shake up after 21 years, i'm sure they should have be producing decent cashflow after 21 yrs.
picked up a bundle in oz towards close at .053c which closed at .059c. Notice on the asx that it was the 3rd larges volume in 3 years.
croesus
13-03-2007, 10:24 AM
Will be watching todays trading with interest....not sure if the S/P will kick on or not..would certainly concur with e/trader re s/p spikes....and board shake ups....
regards to all stalwert posters on this thread.
cheers Croesus.
Jess9
13-03-2007, 01:18 PM
Last sale at 7.6 26% rise on 1.1m (and thats on NZX)..
looking at ASX last trade at 6.3c (about 7.2c) on 2.8m
Nice.
Jess9
13-03-2007, 01:34 PM
Nicer...screaming up further on volume - maybe last nights 10c will be reached today!!
Volumes and momentum must indicate AUS feel more is going on. Time will tell.
Jess9
13-03-2007, 05:58 PM
Hi Croesus.
Well well, feels like 1/2 the coy turned over today, well about 16m shares. Rather alot for sleepy old HGD/HTM. Looks like it has woken up with a fire under its pants! Price up too on this so looking good.
Croesus - HGDCA's again have a market - wonder if AUS buyers waking up to them? Huge buying interest in the options on ASX open - my bid missed out : (
CA's may be quite profitable over the next few months - They are in the money now, from memory the excerise price is now 6.3c NZ to convert to a fully paid share. Do you argee?
croesus
13-03-2007, 07:03 PM
Either 6.3 or 6.2 with a cut off end of June... I think... if somebody has time to look it up... that would be appreciated.
Certainly a big trading day, have a feeling we may see 20c folks, just a feeling no academic arguement to base it on.......soon some Aussie mag will feature the Gold (known but how much,??
the Cobalt known.. a possible float,??? and the uranium... pie in the sky..?? but a morsel of good news and the uranium will blow the S/P sky high
Mr Mowbray should be smiling.
Hi Croesus, I think this might be what your after?
Extract regarding Warrant Conversion Price from 24/11/06
Under the terms of the Warrants stated in the Prospectus dated 15 May 2002, when the Company makes a pro rata rights issue to holders of shares in the Company, the price to convert to a fully paid ordinary share in the Company is adjusted.
Accordingly, the Company advises that following the rights issue allocation above, the
conversion price to convert a Warrant to a fully paid ordinary share has been adjusted from NZ 6.5 cents to NZ6.3 cents.
For full version: http://www.heritagegold.co.nz/PDF/ASX241106.pdf
Looks to me that the HGDOA options are looking pretty attractive too!
Cheers
BP
underground
13-03-2007, 08:46 PM
read the paper today and almost fell off my seat...lucky i still have a holding - i was considering selling this off soon =)
Crypto Crude
13-03-2007, 10:09 PM
I want HGD to perform well, because I picked it for the sharetrader comp....
but, is anyone worried that HGD only has 750k cash at the bank....
imminent re-raising is on the cards this year....
is it time to take profits?....
[8D]
.^sc
Hi Underground,
I think a few people will be getting a surprise after the last 2-3 days and those who hold on to their shares for a few more months will be pleased they didn't sell as quickly as the rest. IMO keep holding or sell in small parcels!
It looks like some good news for shareholders over the next month or so, so if you've been waiting patiently for a few years-what's another month or two!.
Prospects of increased gold resource for Waihi area and I still think they will sell of these permit areas once new resource levels are confirmed.
Potential Broken Hill IPO a bit later in the year, hopefully earlier and now Uranium exploration, with an agreement thats looks positive and timely!.
Could be worth holding a bit longer and there's almost nothing like watching your shares increase in value each day.
More excitment too come, I think!
Cheers
BP:)
lager
13-03-2007, 10:25 PM
Fodder, great to see someone notice my posting. The 'U' is the keyword. I was busy the last couple of weeks and didn't keep track. The share price increase has given new hope to Heritage 'Miners'.
Jess9
13-03-2007, 10:57 PM
Thanks Bap. Hi Croesus, also think hgd will go 15-20c soon.
Option buying at volume today indicates to me investors going long. Also some large buyers, note one bid for 1m shares! To me this indicates the markets consensus about changes (said and unsaid) over the last two months is for more to happen quickly - all this action is more than the announcement, prima facie should deserve...so 15-20c very likely soon.
Bap - you are right to say hang on,or if cannot sell in stages. Easy to cut and run, then watch the share just cayy on up...cut losers an let winners run. HGD's time has come!!
steve fleming
13-03-2007, 11:27 PM
Hi guys
There is a really interesting post from Walgert on HC - an excerpt from a broker's report of y'day/today which i am guessing is Far East Capital.
""The uranium licences makes for a very interesting story and could open the
door to a very exciting opportunity. The Dunmarra Basin has not been
explored for uranium in the past. It has been overlooked notwithstanding its
proximity to the south of the McArthur Basin/Pine Creek unconformity which
hosts many rich uranium orebodies. Erosion over millions of years is likely
to have transported uranium in solution to the Dunmarra Basin where it is
hypothesised that is may have been collected by sandstone beds. These beds
are thought to be similar to the sandstone beds in the west of the USA,
that have hosted many uranium mines.
HTM will have to go out there and drill test the targets, but there is
anecdotal evidence already available which give room for optimism, and which
was the reason why HTM agreed to do the deal. Some 30-40 years ago a number
of water bores were drilled. The drillers had a gieger counter with them
which recorded strong results, to depths of approximately 100m. The
geologist that pegged the licences is firmly of the view that he can come
up with intersections of 1000 ppm, which would be rather stunning. It would
open up a new field. The drill results will give us the real answers, in
the later half of this year. In the meantime we can but speculate."
On this basis, it still has plenty left in it then....i am guessing a market cap of $20 - $25mil is realistic, especially with promising drilling program ahead.
Cheers
Hi Shrewd Crude,
I think I will give you a run for your money in the sharetrader comp, but seriously there is no problem with cash in the bank.
HGD has indicated in their announcement how they will fund there initial Uranium exploration and licenses.
Also IMO the reason they are not proceeding with the MEM IPO, is because they will use funds from selling off the Waihi permits to a prominent miner (once the new resource upgrades are confirmed) to further fund this exploration and the Broken Hill IPO. Which if you do the sums afs outweighs the prospective revenues/profits for Waihi.
This company will become Aussie based, which will be good thing for an explorer and it's shareholders. I also suspect that under the chairmanship of Geoff Hill, we will see greater opportunities for HGD to take advantage of it's resources. IMO he will be 'hand picking' the new MD.
I'm confident of a 25 cent share price in the next 6 weeks if my suggestions are shown to be even slightly accurate.
As I said in my previous post-don't sell to quickly- time is on the side of the HGD holder.
Looking forward to April!
Cheers
BP:D
Jess9
14-03-2007, 12:22 AM
"The geologist that pegged the licences is firmly of the view that he can come up with intersections of 1000 ppm, which would be rather stunning" - per SF's cut above.
Hi Steve - Thanks very much for that post. Very very interesting, thats makes more sense for this recent strong run, with that in mind I'll re-adjust and fully agree with BAP, 20-25c untill drilling results either confirm or deny. Oh sweet days to come...
PS Wonder if PALADIN (Summit takeover in all deal etc) might be interested if the U does become proven, or maybe in taking a position to hedge there bets before. Interesting days.
Gooo HGD!!!
Crypto Crude
14-03-2007, 12:29 AM
quote:Hi Shrewd Crude,
I think I will give you a run for your money in the sharetrader comp, but seriously there is no problem with cash in the bank.
I think you will give me a run for my money... think I was comin dead last as I made a play on TRS which was 2 cents but is now 1.1cents....
I new nothing about this stock other than year high of $1... year low of 2cents....
looked like it could have gone up many 100%'s....
hoping HGD will keep running up....
I have an example,
aurora minerals was getting hammered.... went as low or close to 15cents...
then it made an announcement about uranium exploration and SP exploded...
hit around the 60cent mark a few weeks back....
good luck HGD-HTM holders....
for close to the first time This week I have seen ASX traders lead upwards SP movements....
it was the ASX which has held back ramping SP's in the past....
20cents yup, keen as here... hope you are right BAP...
its sucky being in dead last [xx(]... in my first comp
[8D]
.^sc
Jess9
14-03-2007, 01:07 AM
Assuming we do blow higher and maintain, warrants will all be converted giving HGD $1.26m in funds - end of June, meaning share placement previously mentioned may not be required.
whatsup
14-03-2007, 10:14 AM
What are the details on the warrants -price , date etc.
etrader
14-03-2007, 11:14 AM
Reasonable volume in first 15 minutes up to .08c now up 1/2 cent, will be watching with interest in near future to see if you traders are right in terms of .15 to .20c possible s/p. These sorts of stocks can move so quick either way you can miss the boat.
Notice on the announcement from Summit resources in terms of defending the takeover of it, that they stated at the end that Uranium has now hit $90 up from $85 a pound. This puts more value behind these resources.
Note oz has just opened with HTM trading below HGD here with the cross over, either HGD will drop here or HTM will rise, think if either HGD is more likely to drop a little first, with wall street having there second biggest drop overnight i guess there could be short term fear for investors.
Jess9
14-03-2007, 01:25 PM
quote:Originally posted by whatsup
What are the details on the warrants -price , date etc.
Hi there.
26 June 2007 - 6.3c (8.3c - part paid down 2c already)
Jess9
14-03-2007, 01:28 PM
etrader - markets down 2% ouch...however could be a good opp to get in if price goes too far - as will likely rebound etc when markets settle, or on positive announcements.
etrader
14-03-2007, 02:37 PM
quote:Originally posted by Jess9
etrader - markets down 2% ouch...however could be a good opp to get in if price goes too far - as will likely rebound etc when markets settle, or on positive announcements.
Bought back in today after a quick sale in oz yesterday, there will obviously be some spec trader moving in and out, but as i said before if the fundamentals are there behind the stock with real underlying assets that can be recovered and a diversified resource base then investors will wake to this.
In for a hold until good announcement arrive.
have been trying to get hold of an updated top 20 list from the company via email but no responce. They might be to busy sizing up opp's overseas.
Based on info supplied to date to investors think it's a likly chance that the gold assets will be sold of still as a trade sale now that the float of the gold division is not going ahead, maybe one of their comp in Waihi could add synergies to their asset base. It's been publically submited their strikes and updates on a regular basis, so i guess comp can read into this easily. Will get more legs after the 30 day due diligance period is passed if all stacks up, the size of the field is only around 1200 sq km so not a massive area but I'm happy after 21 yrs they are changing their business model.
Karangahake, which is in the upper North Island, has attracted several
interested parties, with joint venture discussions with overseas companies
taking place during the period. Heritage will continue to keep shareholders
updated on these discussions.
"Joint venture discussions are being held on the basis that any outcome would
be advantageous for the proposed spin-off of Mid-Earth Minerals," Mr Atkinson
says.
The above was from one of their updates late last year, most would have read it, but it's interesting in the sence that some larger players would have run the pensil over the company and would be well informed on their asset base.
STRAT
14-03-2007, 06:23 PM
Good news for this lethargic NZ company but there is a way to go before it materializes into anything concrete. Why are you fellas so convinced this is nothing more than a spike on a bit of possibly good news?
etrader
14-03-2007, 07:16 PM
quote:Originally posted by STRAT
Good news for this lethargic NZ company but there is a way to go before it materializes into anything concrete. Why are you fellas so convinced this is nothing more than a spike on a bit of possibly good news?
Guess we've all heard companies blow things up and the price spikes, at least in this case HGD is just quietly talking about intentions with Uranium. Of course we hope for a gradual increase in the price based on the right info coming to market.
Jess9
14-03-2007, 07:27 PM
Hi STRAT. My comment was related to the overall dip in investor confidence from the broad market selloff today. But looking at trading in HGD/HTM and the oppies etc today, i.e there was reducing volume on small drop in price - I pick HGD is truly started its bull run up. Any price weakness arising from general market may be an chance for discounted entry, assuming the coy is a phoenix...oh there we are (new possible name) Phoenix Resources!
etrader
14-03-2007, 07:32 PM
, assuming the coy is a phoenix...oh there we are (new possible name) Phoenix Resources!
[/quote]
I talked direct to HGD at head office today and put if from most of the posts on this site that there is a general consensis that the company name should be changed, they indicated that it is a consideration considering the change in business model. Was no definative ideas or answer, but i hope that helped voicing that on behalf of other investors.
Lets get creative and fire some names out to the members.
Personally I'm not overly concerned about the name of the company as the main priority for management must now be to confirm resource levels in all permit areas.
I do agree that as they are diversifying they need to imply they are more than a just gold explorer, but Heritage Resources would sound fine to me.
I don't think too many investors will be concerned about the name if the resource levels meet the targets that have been indicated.
All I want to hear is that the 200K oz of gold in Waihi is confirmed at 500k+. That the levels of cobalt @ Broken Hill meet the 33mill pound target and that as Steve's previous post highlights -'the geologist that pegged the licences for the new Uranium exploration is actually correct in his view that he can come up with intersections of 1000 ppm.
When I first looked at SMM as a possible investment 18 months go the potential of the share was no greater than HGD's today and the share price and history were similar. Now lets hope our management team is 'on the ball' and they can realise all this potential in revenues.
If they can, I believe we will see the share price continue upwards for a long time yet. There is always spikes and dips, but that is just part of investing in shares. IMO HGD will follow the same share price trends as SMM if the above scenarios are confirmed. Have a look at the charts for SMM over the last 2-3 years.
I started following HGD shortly after and I've used much a my proceeds from SMM over the past 6 months to accumulate more HGD. Still hold a few thousand SMM, but looking at HGD as it's successor in my portfolio.
Cheers
BP:)
Jess9
14-03-2007, 09:45 PM
A few news items to follow, for those who have not read yet...
Heritage Gold to search for uranium
Email this storyPrint this story 5:00AM Tuesday March 13, 2007
By Christine Nikiel
Peter Atkinson
After 20 years of unsuccessfully trying to find gold in New Zealand, listed mining explorer Heritage Gold is taking a different tack - exploring for uranium in Australia.
The NZX- and ASX-listed explorer is carrying out due diligence on a joint uranium exploration venture in the Northern Territory.
Despite reporting several promising samples in its Coromandel prospects recently, the company has not struck gold in 21 years of exploration.
Finalised on Friday, the uranium venture was "a chance to broaden the explorer's approach to mineral searching", said managing director Peter Atkinson, who resigned on Friday, but is staying on until a replacement has been found.
The company, which will continue gold exploration here, had evaluated several opportunities since it flagged its change of strategy at a shareholder meeting in September, but this was the most attractive.
"There are a number of minerals and metals that we could search for at the moment that you could argue you're going for because of the price - that's the kind of market we're in."
The Australian syndicate had applied for licences to explore areas potentially holding the type of deposits that had produced more than 80 per cent of the uranium mined in the US, said Atkinson.
Uranium prices are rising because of plans to build nearly 200 nuclear power plants around the world in the next 10 to 15 years, but Atkinson would not guess how profitable the uranium prospect could be.
On last week's spot market uranium was US$85 ($122) a pound, up from around US$7 a pound in 2004.
After listing on the NZX in 1986 at 50c, shares rose to $1.50 in 1987 after highly encouraging sampling from the Mahara Royal prospect on the Coromandel was announced. However, the price hardly moved when the company announced its most recent positive drilling results on February 28, and Heritage Gold ordinary shares now trade for around 5c.
The company's announcement comes on the back of an announcement that three of the company's directors are resigning: managing director Atkinson, founding independent director David Williams and director Ralph Stagg.
Atkinson said he'd wanted to take a less direct operational role in the company for the past year or two. A proposed spin-off of the company's Waihi gold assets into a new company called Mid-Earth Minerals had been a way to allow that, but no suitable manager was found so the idea was dropped in favour of finding someone to take over the whole company.
Atkinson said the new managing director would probably come from Australia.
Heritage Gold will be hoping it can follow the lead of New Zealand-based Summit, a former gold exploration company which headed to Australia in the 1990s and discovered a uranium deposit in Queensland.
Last year Summit shares went from 63c to $3.15 as uranium surged to US$69 a pound.
In its agreement with the Australian syndicate, Heritage Gold will issue 2.5 million fully paid ordinary shares to the vendors immediately after due diligence, and 2.5 million more fully paid ordinary shares when the exploration licences are granted.
A further 20 million shares will be offered at a price of A3.5 cents to "sophisticated and professional" investors to fund the investigation of the uranium proposal.
Uranium
* Used to manufacture nuclear energy.
* This week trading for US$85 a pound, up from US$7 in 2004.
* Australia has the world's largest uranium reserves - 25 per cent of known supply.
Jess9
14-03-2007, 09:54 PM
RAISING FURTHER CAPITAL
Further changes at Heritage Gold as it moves into uranium
With news of sweeping management changes at Heritage just being absorbed the company has now announced it would be joining the great Australian uranium race.
Author: Ross Louthean
Posted: Monday , 12 Mar 2007
Perth -
With news of sweeping management changes at Heritage just being absorbed the company today announced it would be joining the great Australian uranium race.
Heritage said it signed a heads of agreement to enter a joint venture for uranium in the Northern Territory by paying an unnamed party $A10,000 within 30 days of completing due diligence. This would allow the company to earn up to a 50% stake by spending $A2 M ($US1.562 M) over three years. It would also issue 2.5 M shares to the vendor and a further 2.5 M shares when the exploration licences - covering 1,256 square kilometres n the Dunmarra Basin - are granted.
The company also plans to place 20 M shares at $A0.035 each ($US0.027) to raise fresh capital. The news elevated Heritage's pancake thin share price to $A0.052 ($US0.04) today - a lift of 23% on Friday's close on the Australian Stock Exchange.
Contrasting performances for Heritage and another NZ-Australian listed company Summit Resources was raised in a newsletter.
Writing for Milford Asset Management (http://www.milfordasset.com/), well known Kiwi business commentator Brian Gaynor said Summit's share price had surged above $NZ5 ($A4.4) and its market value above $NZ1.1 billion ($A09.7M) while Heritage hovered around NZ5 cents (A4.4¢) and with a market value of less than $NZ10 M ($A8.87M).
Gaynor said both were floated within months of each other and both had peaks in the late 1980s gold boom - Summit at NZ55¢ and Heritage $NZ1.50 - and both were hit hard by the 1987 market crash.
Summit's managing director Alan Eggers took Summit to the Mount Isa region of Queensland looking for uranium and base metals, and taking over early uranium discoveries - all before uranium again became fashionable. Now the company is under a hostile takeover from fashionable Australian uranium seeker Paladin Resources.
Gaynor claimed Heritage which stuck to the Coromandel had suffered a depressed share price, had not lived up to its promises and had made share placements that puzzled some investors, along with a failed attempt to move its Waihi region gold assets into a new vehicle (now abandoned).
Jess9
14-03-2007, 09:58 PM
Brian Gaynor: Miners' fortunes show all that glisters isn't gold
Email this storyPrint this story 5:00AM Saturday March 10, 2007
By Brian Gaynor
Luck plays a major role in the success or failure of listed mining companies.
Having said that, companies make their own luck - the successful ones are constantly looking for new exploration and production opportunities.
Summit Resources and Heritage Gold NZ are excellent examples of the contrasting fortunes of mining stocks. They have a great deal in common as they were both floated within months of each other during the 1980s sharemarket boom and still have their original managing directors, although one announced his resignation after the market closed yesterday.
In the past few weeks Summit's share price and market value has surged above $5 and $1.1 billion respectively while Heritage's share price is below 5c and it has a market value of less than $10 million. Is the success of Summit due to good luck or good management and why has Heritage performed so poorly?
Summit, then called Summit Gold, was listed on the NZX in July 1987 after the issue of 30 million bonus shares to existing shareholders. Colin Beyer, the Wellington lawyer, was chairman and Alan Eggers managing director and the driving force behind the company.
The company's main objective was to develop goldmining operations in Western Australia and in Central Otago near the Macraes resource.
The stock peaked at 55c shortly after listing - giving Summit a market value of $22 million - but fell sharply after the October 1987 crash.
The original gold prospects didn't meet expectations and in the mid-1990s the company began exploration work on its Mt Isa lead, zinc, copper and uranium prospects. It discovered a uranium deposit in this area but the activity was sidelined because the Queensland Labor government had a ban on uranium mining.
Earlier this decade the company had a number of share placements between 6c and 12c a share and in 2003 Auckland lawyer John Seton, the brains behind Iddison Group Vietnam (later IT Capital and now Sealegs), replaced Beyer as chairman.
Shortly after Seton became chairman, the company placed 26 million new shares at A4.6c each. The buyers of these shares have been extremely fortunate as these are now worth $127 million compared witha purchase price of just over $1 million.
Interest in Summit picked up in 2004 when the price of uranium shot up to US$20 a pound from US$7. The company started putting more emphasis on its uranium prospects but the share price was still only 18c at the end of the year.
In 2005 Summit's share price increased from 18c to 63c as the uranium rose from US$20 a pound to US$36 and last year Summit went from 63c to $3.15 as uranium surged to US$69 a pound. Earlier this week the uranium spot price was US$85 a pound.
In February Paladin Resources, a major Australian uranium company with a market value of A$4.4 billion, made a hostile takeover offer for Summit on the basis of one Paladin share for every 2.04 Summit shares. At Paladin's Thursday closing price of A$8.78 the offer is worth $4.90 per Summit share.
The takeover was not unexpected as Paladin is the other 50 per cent joint venture partner in the Valhalla and Skal uranium deposits in Mt Isa and is in dispute with Summit over a number of aspects relating to Valhalla.
The target company quickly rejected the offer on a number of grounds, including the belief that the Summit share price had better potential. Analysts believe that the bid values Summit at a uranium price between US$15 a pound and US$24, well below the present spot price of US$85.
However it will take at least three to five years to develop these mines and Australian politicians continue to ban the development of new uranium mines.
The success of Summit is due to a large dose of luck plus the determination and perseverance of Alan Eggers. The company would still be a penny dreadful if uranium had remained under US$10 a pound, but Eggers spotted an opportunity and has taken advantage of it.
Jess9
14-03-2007, 10:03 PM
Ha Ha if this was only true at close today...cut from Radio NZ site
The New Zealand market has not been immune to the global sell-off, but declines have been slightly less. The NZX50 has fallen 52 points to close at 4053 on turnover of $113 million.
Telecom is down 13 cents to $4.70, Fletcher Building fell 4c to $11.06, Air New Zealand is down 16c to $2.04.
Infratil dropped 4c to $5.50, Heritage Gold 7c to 66c. Restaurant Brands fell1c to $1.09 after news of chief executive Vicki Salmon's resignation.
Among the rises, Freightways rose 2c to $4.40.
In the currency markets at 5.20pm on Wednesday, the New Zealand dollar was starting to weaken, buying 68.56 US cents, 87.66 Australian, 35.48 pence, 79.62 yen, 0.5191 euro. The Trade Weighted Index stood at 67.50.
http://www.radionz.co.nz/news/latest/200703141845/nz_market_touched_by_global_sell-off
Jess9
14-03-2007, 10:08 PM
Nice to be news worthy, and currently for the right reasons : )
Lots of similarities, especially encouraged by this part of the SMM story:
<Earlier this decade the company had a number of share placements between 6c and 12c a share and in 2003 Auckland lawyer John Seton, the brains behind Iddison Group Vietnam (later IT Capital and now Sealegs), replaced Beyer as chairman.
Shortly after Seton became chairman, the company placed 26 million new shares at A4.6c each. The buyers of these shares have been extremely fortunate as these are now worth $127 million compared witha purchase price of just over $1 million.>
While the fortunes of SMM and HGD have varied over the last few years, who can say with certainty that will continue.
Finally HGD may be creating their own luck and future. I'll be a very happy man, if I can even make half the gain of the fortunate investors noted above. New Chairman and new MD could just be the beginning for HGD also.
Cheers
BP:)
Hi Jess,
Looking at the buyers on the ASX at the moment suggests to me that one more bit of positive news in the next few weeks will send the share price into double digits.
Cheers
BP:)
Jess9
15-03-2007, 07:39 PM
Yip. My guess it will be on the uranium permit due diligence outcome, all go and off she flys. All stop, and maybe some retracement. Or/and on the calibar of the new MD.
I quess that both bits of news might well coincide early in April.
I suspect the MD has already been 'hand picked' by the the new chairman and assuming that the due diligence is completed successfully they will release details o both together.
(You don't usually pick up MD's in a matter of weeks, unless you have already started the process of selection and decision making)
I'm also expecting progressive news on the Karangahake drilling program about the same time and we have a quarterly report due at the end of April.
Looks like everything should fall together nicely.
Good to see good size parcels (over 200k) wanted/buyers on the ASX.
Cheers
BP
Jess9
15-03-2007, 08:43 PM
re depth, one buyer remaining for 700k approx at 6c AUS right at day end, a trader, or "the" accumulator?
croesus
15-03-2007, 08:46 PM
Wonder who is picking up all the shares in Aussie..........and when the Cobalt investment is floated.
Jess9
15-03-2007, 08:47 PM
Considering the new interest in HGD, there is likely to be a flurry of broker analysis - good PR opportunity for Heritage here, will also make intersting reading for us, in terms of the detail.
I think the trader dropped off just before close of ASX and will look at early signs again tomorrow. (I'm not atrader so don't really know how they think!) IMO the accumalators are still there.
Put my money where my mouth is and added another 250K to portfolio over last two days.
Puts MY average price up a bit, but very confident on overall outcome.
Cheers
BP:)
Jess9
15-03-2007, 09:50 PM
Here's a cut from the web on GH (new Chairman).
Geoff is Domiciled in Hong Kong and is responsible for the groups expansion into Asia. He specializes in the field of corporate financial advice, mergers, acquisitions and restructuring. Over the past 30 years he has worked in major merchant banks both locally and overseas. During this period he was Managing Director of Morgan Grenfell Australia and also a director of the Morgan Grenfell Group plc. Geoff has participated in the successful flotation of over 50 IPOs in Australian and international equities markets and facilitated raising in excess of $A1.0 billion in new issues and capital raisings. He has been the principal adviser or participant in over two hundred mergers and acquisitions.
Prior to setting up Pitt Capital Partners, Geoff was Chairman and Managing Director of International Pacific Securities Group from 1987. Geoff is a non executive Director of a number of public company’s including Hills Industries Limited, Brickworks Investment Company Limited and Huntley Investment Company Limited.
The group established its Hong Kong Office in 2004 and has been active in the region in both corporate finance and investment since that time. Geoff is Chairman of Pitt Capital Asia Limited and a Director of Asia Property Investments Limited.
Hi Jess,
Yes and I bet he wouldn't be mixed up with HGD if they weren't going places!
With his credentials why link yourself to a penny dreadful, unless there is plenty of money to be made.
HGD will be the new SMM and I'm glad I'm in at the early stages.
Croesus, I still look forward to a Broken Hill IPO, there is so much untapped potential there. I also wonder if there is any Nickel lying beside that cobalt? (The saying goes- where there is cobalt- nickel will not be far away!)
The price of both are climbing due to demand exceeding supply.
Resource upgrades all round will take this share to new heights.
Cheers
BP:)
steve fleming
15-03-2007, 10:46 PM
quote:Originally posted by croesus
Wonder who is picking up all the shares in Aussie..........and when the Cobalt investment is floated.
Intersuisse (brokers) have been the largest net buyer of HTM on the ASX over the last few days....which is a good thing as Intersuisse has a pretty good record with resource juniors.
Also, there has been lots of trading through Commsec/Etrade...so traders have got on board HTM as well.
Good news all round.
Have a little suspision we might get an earlier announcement to get things really 'rocking'.
Just a quess! (So many interested parties on ASX)
Cheers
BP
:)
STRAT
16-03-2007, 01:11 AM
Thankyou for your replies guys and girls. BAP, I suspect you let your SMM go a tad early
STRAT
16-03-2007, 01:57 AM
Have I got these points right? After spending 21 years looking for gold, HGD finally found some but havent dug it up. If they get permission to look for uranium they will dilute the company by about 10% by selling new issue shares at 3.5cents to sophisticated and professional investors and for which I assume we will not qualify. The new Chairman is known more for raising capital than mining. I understand where the comparisons between HGD and SMM are being drawn from but there is a huge difference between having the goods and trying to get permission to look for the goods. I will keep watching with interest.
Jess9
16-03-2007, 09:07 AM
Good points STRAT.
The new MD/CEO choice will be critical for HGD's future - as it was for Summit - your Chairman comment etc
I have confidence an appropriate person will (has) been found, backed by trading patterns in this stock over the last 6 weeks or so...a unique change from past few years i.e. the market is the sum of all knowledge...so something real is up.
Jess9
16-03-2007, 01:54 PM
Fast action on ASX today - this is definetly becoming the main market. Small rise so far but on decent volume, and note there is building volume strength, with sellers pulling back and asking more also (and so they should ;)
Picked up some oppies to put in my bottom draw, until next year. Nice if HGD is well into double digits by then : )
Just need a nice announcement, next.
Hi Jess,
We might have to wait a few weeks for that announcement, but if the new management wanted to get the markets really interested they would have a strategy to release news a quite regular intervals over the next few months.
For example - new MD based in Aussie, update drilling progress at Waihi, my favourite would be news with regards to Broken Hill IPO, sell off of Waihi resource planned etc..
This may encourage those sceptics out there that something is really about to happen for this company and off course push the share price to double digits. This would create a flow on and probably bring an even larger number of buyers into the market.
Cheers
BP:)
whatsup
16-03-2007, 05:17 PM
Whats the Aust call sign?
STRAT
16-03-2007, 05:44 PM
quote:Originally posted by whatsup
Whats the Aust call sign?
HTM
HTM for Aussie
Cheers
BP:)
Jess9
16-03-2007, 07:11 PM
...so to summarise:
HGD - shares on NZX
HGDOA - 10c 2008 options
HGDCA - 6.3c June 2007 warrants (same as an option)
HTM - Shares on ASX
HTMO - 10c 2008 options
That right BAP?
Looks spot one to me....
and for any further investor info and details about the company go to: www.heritagegold.co.nz
Wish they would update this website a bit more regularly however!
Thinking those HGDCA warrants & HGDOA options might start looking good if we get those announcements coming thru!
Cheers
BP:)
Jess9
16-03-2007, 08:31 PM
quote:Originally posted by steve fleming
quote:Originally posted by croesus
Wonder who is picking up all the shares in Aussie..........and when the Cobalt investment is floated.
Intersuisse (brokers) have been the largest net buyer of HTM on the ASX over the last few days....which is a good thing as Intersuisse has a pretty good record with resource juniors.
Also, there has been lots of trading through Commsec/Etrade...so traders have got on board HTM as well.
Hi Steve. You're well informed. Any idea what Intersuisse brokers - are saying? Any broker report available? If available it would be interesting to see to throw into the mix, on where HGD is heading.
Jess9
16-03-2007, 08:38 PM
quote:Originally posted by BAP
Looks spot one to me....
and for any further investor info and details about the company go to: www.heritagegold.co.nz
Wish they would update this website a bit more regularly however!
Thinking those HGDCA warrants & HGDOA options might start looking good if we get those announcements coming thru!
Cheers
BP:)
Hi BAP. I like the leverage angle i.e. you could hold 1 share, or approx three options or warrants for the same $. The gains are nicely increased when they get in the money...however therein lies the rub, if they never get there!
Considering HGD is no Telecom - risk wise I don't really see too great a difference - especially if things are likely to be moving rapidly forward from here in. Also with no spin-off now, options are safer as they are driven by HGD assets/share price etc.
Hi Jess,
There is certainly a degree of risk, however I suggest that if our scenarios are anywhere near accurate, both the warrants & options will start to look more attractive as more news filters through. Although to be honest I would still rather accumulate head shares at present.
I am now in the position to up my target level by another 250k and will look at adding prior to the announcement times that I'm anticipating/quessing.
Regarding your note to Steve re: 'Intersuisse broking',- It would also be interesting to know whether any NZ brokers are pushing HGD with their clients. If anyone has any knowledge of this it would be great to hear from you!.
In the meantime my comment to the HGD/HTM management is that the market needs more news and while it should not be overstated it needs to be back up and acted on. Maybe they should read some of the historical posts on this forum to see how the small to meduim size shareholders and sceptics feel.
As you are probably aware they don't have to convince me!
Cheers
BP:)
steve fleming
17-03-2007, 10:30 AM
quote:Originally posted by Jess9
quote:Originally posted by steve fleming
Intersuisse (brokers) have been the largest net buyer of HTM on the ASX over the last few days....which is a good thing as Intersuisse has a pretty good record with resource juniors.
Also, there has been lots of trading through Commsec/Etrade...so traders have got on board HTM as well.
Hi Steve. You're well informed. Any idea what Intersuisse brokers - are saying? Any broker report available? If available it would be interesting to see to throw into the mix, on where HGD is heading.
Hi Jess...not that well informed really! i just have access to Bloomberg which details which brokers are doing what, which can be quite interesting to follow!
The thing about HTM/HGD is that there is, at last count, about 50 or 60 junior Uranium explorers out there all looking to become the next PDN/AGS/SMM....it is very hard to sustain broker (and investor) interest in an explorer like HTM unless the explorer can offer something special in order to really differentiate themselves from the pack (whether that be quality of management/positive drilling results or soil samples/shareholder or board connections/'nearology' etc)....HTM is better placed than some due to also having the advanced exploration at Waihi.
However, until HTM/HGD announce further details as to the prospectivity of their ground, and details on management, it is just going to be at the mercy of traders.
Cheers
etrader
17-03-2007, 02:21 PM
Steven, i might be wrong but i had a feeling that around 400 companies are now promoting "Uranium" as their business, these are .com or gold producers that have backdoor listed via a uranium float, on the nzx we have very few from my understanding, Summit and now HGD, understand Aurora minerals have also, so if we can get nz exposure also from small broking houses once they make some traction with Waihi and wait till the Due dillagance period for Uranium. It could be an interesting time once a new MD is announced, the due dillagance period has passed with positive results in terms of their holding, and updated info on Waihi, also will be following the Colbolt holding.
Understand from head office that they intend to update top 20 holders soon as there has been and upsurge in investor interest.
Have bought back into this stock on the nzx after a 24 hr turnaround in oz, 20% profit and purchased back on the dip. Will be sitting on this holding till solid info arrives.
Jess9
17-03-2007, 03:45 PM
Gold over USD 650/oz again! I guess cobolt and maybe the big U may also become of interest shortly.
Buying volume fell off in the afternoon on Friday on the ASX, however weighted price was around 6.5c AUS for the day. Not bad after such a good rise.
Seller depth looks light on both X changes and buyer depth looks much stronger. Assuming price has stabilised at this level (6-6.5c AUS) - entrants next week will need to pay more, maybe up to 9c AUS (aka, that 10c mark in NZ$)...be interesting to see then. We really need another decent announcement and I fully expect several to be released over the next few months.
HI Jess,
Agreed we need a positive announcement this week to really spark some interest and push the share pice towards the 10c+ mark.
Assuming the due diligence is successful, I think one of the key factors for HGD shareholders to consider is that we will have a stake in a resource company rather than one relying purely on gold.
There's no doubt that a confirmed gold resource upgrade in Waihi will help the share price but it will be good to see exploration expanding in Australia.
The Uranium and cobalt prices are rising due to supply and demand pressures, which are unlikely to alter for many years yet. Gold is trading consistently above US$600 and still looks like heading on another bull run at some stage.
So any confirmation of positive resource levels should automatically flow through to the share price, then we might have another SMM.
It will be interesting to see who the MD turns out to be and I suspect this may be the next bit of news released, just before further drilling progress @ Waihi and the outcome of the due diligence in the NT.(hopefully a Broken Hill IPO won't be too far behind either)
Cheers
BP:)
etrader
17-03-2007, 07:20 PM
Bap: in terms of IPO for cobolt, i know they own 33%, is the difference help privatly, or is it a division of another lister miner in oz, is there any public new on a possible float, or is just purly market expectation, i read the report saying cobolt demand is surging fast and prices are rising.
I'm sure HGD has a new MD in mind as with the demand for MD with the resource sector booming, investors such as fisher funds generally use the MD as a key to buying into a listed stock, obviously with the right leader generally comes the right results. It's time to clear the cupboard out and shake this team into gear. A 10C S/P would cap the company at $18.5 mill, pre options, still a small cap co, wonder what a trade sale on waihi is worth to a mining company, this could excelerate their expantion into a diversified mining group.
Jess9
17-03-2007, 08:12 PM
Hi all.
I hope they put a good attractive remuneration package to the right candidate i.e. one that has a proven track record for getting start ups off and off.
I would see an attractive package necessary (and worthwhile) to get the right person, and would at least include a decent salary $150K AUS+ and some decent level of smartley targeted equity options to ensure the MD/CEO is a keen performer/shareholder etc ; ) Head office should also be based near main operations - so maybe AUS depending etc
Moving along...I'm guessing here somewhat... but might the other 2/3 holder in Broken Hill Cobolt be Southern Cobolt? i.e. the 20% holder in HGD - and Geoff Hill is Board member on both. Or am I simply getting confused?
Finally anyone good at "share charting" and care to hazard a few comments about recent changes in HGD??
I strongly suspect it will be in a strong up trend right now, always a good thing - what do they say, the trend is your friend : ) I think we are seeing a change in shareholder feeling now, from fear of it falling back and languishing to greed of missing out of HGD finally delivering promises, to green eyed envy of missing out on massive gain. Ahhh the emotion in it all, what ever...I suspect it will be a exilerating ride!!
etrader
17-03-2007, 10:02 PM
Did an ozzy google on BHC Ltd and this is one of the articles i found
PlatSearch is pleased to announce that a Heads of Agreement has been signed with Broken Hill Cobalt Limited (BHC) in relation to PlatSearch’s Hollis Tank tenement. The subject of this agreement is the northern part of EL 5765 (see attached map) covering an area of 182 square kilometres (Joint Venture Area). The area is considered to be prospective for stratabound copper-gold-cobalt deposits and Broken Hill style stratiform lead-zinc-silver deposits. PlatSearch has an 80% interest in this tenement with Eaglehawk Geological Consulting Pty Ltd having 20%. The agreement is subject to BHC achieving a successful IPO by 23 February 2005.
BHC can earn a 50% interest in the Joint Venture Area by completing expenditure of $200,000. This expenditure shall include a minimum commitment work programme costing no less than $100,000 and consisting of a regional calcrete and/or soil sampling programme, which must be completed within 12 months of BHC completing a successful IPO of its shares. When BHC has earned a 50% interest, it can elect to increase its equity to 75% by completing further expenditure of $500,000. When BHC has earned a 75% interest, PlatSearch and Eaglehawk can elect to participate in further expenditure at their respective interests of 20% and 5%, or convert to 12% and 3% interests respectively, free carried to completion of a bankable feasibility study. Upon completion of a bankable feasibility study, PlatSearch and Eaglehawk can participate or convert their interests to net smelter return royalties of 1.6% and 0.4% respectively.
Joint venturer Broken Hill Cobalt (BHC) has withdrawn from the Hollis Tank joint venture in the Broken Hill region, having not met its expenditure requirements under the agreement. The Hollis Tank tenement is prospective for copper-cobalt-gold and lead-zinc mineralisation. PlatSearch will seek another joint venture partner to fund a programme of soil geochemistry using the new portable XRF NITON technology.
Jess9
17-03-2007, 11:47 PM
Is the above out of date with respect to the IPO deadline?
I note the last quarterly (HGD) states;
THACKARINGA COBALT PROJECT (New South Wales) (33%)
Heritage Gold owns a 33% interest in Broken Hill Cobalt Limited which has title to the Thackaringa cobalt project. This project is held under an exploration licence and two mining leases, covering all of the areas of significant mineralisation. “Planning is underway for a drilling programme to further test the extensions of the cobalt mineralisation identified to date,” Mr Atkinson says. “The drilling will be completed by the third quarter of 2007.”
Seems like BHCL must be quite far along by now - a new announcement would help to clarify, the last annual was also saying they were examining options to list, to assist fund further evaluation work.
etrader
18-03-2007, 09:11 AM
quote:Originally posted by Jess9
Is the above out of date with respect to the IPO deadline?
I note the last quarterly (HGD) states;
THACKARINGA COBALT PROJECT (New South Wales) (33%)
Heritage Gold owns a 33% interest in Broken Hill Cobalt Limited which has title to the Thackaringa cobalt project. This project is held under an exploration licence and two mining leases, covering all of the areas of significant mineralisation. “Planning is underway for a drilling programme to further test the extensions of the cobalt mineralisation identified to date,” Mr Atkinson says. “The drilling will be completed by the third quarter of 2007.”
Seems like BHCL must be quite far along by now - a new announcement would help to clarify, the last annual was also saying they were examining options to list, to assist fund further evaluation work.
Jess yes this out of date but an exert of the web, that why i added the second part saying it had been pulled as they did not IPO, this is originally back to 04 from the first annoucement.
Jess9
18-03-2007, 10:38 AM
The above underscores past problems. Action or lack of.
I think it would be good if HGD does a deal for full ownership of the cobolt resource, and gets the right new MD to bring this along quickly. Maybe to many chiefs and not enough indians in the past?
Something to fix this (i.e. desired outcome is selling cobolt and adding reserves) maybe is covered by the recent comment (along with Board and managamnet change) about other pursueing opportunities.
Hi etrader,
The basic information I have on the Thackaringa Cobalt project indicates that Heritage has a 33% equity in Broken Hill Cobalt Ltd ("BHC") which holds two mining tenements and exploration leases over the Thackaringa Cobalt project near Broken Hill in NSW, Australia.
The project is a joint venture comprising HGD, Southern Cobalt and one other party (not sure who, but a 2004 report indicated Hunter exploration?).
Heritage bought into the project at a cost of around $350,000 after the initial joint venture group did not meet it’s agreement obligations by 2004.
I have not found much information on Southern Cobalt, however they are the largest stockholder in HGD.
http://www.heritagegold.co.nz/text/invest_info.html
My understanding is that Geoff Hill, the new chairman of HGD is a major shareholder and Director of So Co NL. (this is an assumption due to Geoff Hill being a key shareholder, but his name does not appear on the top 20 list)
To date the area has only been tested 10-100 metres below the surface for cobalt. and there is also prospects for base metals -copper, lead and zinc and gold.
The drilling should be completed by third quarter of 2007 according to recent announcements.
The price for cobalt has currently risen to US$30 per pound in recent months and is heading upwards due to supply and demand pressures.
HGD are reportedly targeting a 33 million pound cobalt resource base for the area. That is a lot of revenue if confirmed.
HGD now manages the project and market announcements in 2006 suggested they would investigate further funding options and a possible IPO.
IMO if the the drilling program is successful an IPO would be high on the agenda of all JV stakeholders.
If anyone can confirm or update any of this please do!
Cheers
BP:)
The following link gives some insight into the supply vs demand presures on cobalt.
http://www.goldeditor.com/articledisplay.php?id=1598.
Cobalt price is at US$32.50 per lb.
I have also read that where there is Nickel you will likely find cobalt and copper. I wonder if there is further resource potential at Broken Hill?
Of special interest in the article is this summary below:
In this new wireless and environmentally conscious age, cobalt demand is going to increase as supplies are tightening. We recently witnessed the small universe of publicly traded Uranium producers / developers (4 of them) give investors phenomenal returns. Once the market becomes more educated about cobalt and industry analysts start talking about it, watch a flood of capital flow towards the very few publicly-traded primary cobalt companies available to investors.
Cheers
BP:)
Jess9
18-03-2007, 03:16 PM
BAP I remember about 2 years ago HGD were looking at likely project profitablity with sales to China - from memory they were happy good money was to be made at about $10/pound - wow $30 now, must be really spinning some wheels!! I remember seeing cobolt go to $15 some time ago, and thinking great - but had not looked since...even better at $30!! you may well be right that cobolt will be the 1st real value driver. Wonder if this was what kicked off interest in AUS 5-6 weeks ago, as that was well before the recent other announcements.
Re above, I sent a quick email to Sue Sangster at Heritage today, requesting if appropriate an announcement on Waihi drilling and BCHL progress - from a very interested holder etc, especially with recent share volumes and price appreciation. Maybe other interested holders could do the same - to indicate level of overall investor interest. I wonder if things are ticking on faster now, than should ordinarily be reported via the quarterly.
Jess, I think it will be important for the management to give a progress update before the quarterly report for various reasons.
Firstly to keep momentum, which will give the market some confidence and show that the new management 'means business'.
We need to now who the new MD will be and when he will be taking up the role.
The market must feel comfortable that the company is active with it's exploration and opportunities and not being run by an outgoing MD who is on the semi retirement path.
Also with the 'cancellation' of the Waihi IPO, the shareholders need to know what new plans are being implemented. We had a rights issue late last year, which was partly to assist with the IPO, so whats happening now ?
Will they look at a Broken Hill IPO?
What's happened about the Waihi resource upgrade?
So there is plenty to ponder and plenty to be excited about, but like always we need good information to be able to make good decisions about our continued support of the company.
Cheers
BP:)
Jess9
19-03-2007, 01:15 PM
Just raced up 15% on ASX. Nice, sellers heading higher...lets see if this goes anywhere today
Sudden jump for HTM on ASX, maybe that announcement isn't too far off???
(although NZX down at present)
Keeps things interesting!
Cheers
BP:)
COLIN
19-03-2007, 01:55 PM
"Upsurge" seems to have petered out!
Let's try some other way of pumping air into the balloon!
etrader
19-03-2007, 03:44 PM
The increase on the asx was due to a very small parcel selling at discount on friday as a last trade, so it's back to where it was before that small parcel. HTM trading at a very small discount over the nz listed stock.
http://www.smh.com.au/news/business/uranium-heads-for-us100/2007/03/18/1174152882008.html
Above is a link in SMH saying that Uranium will hit $100 up from $90 possibly this week, obviously HGD is only in the initial stages of looking into the venture but it does show the demand for the product.
Hi etrader
Thanks for the info regarding end of day trading on friday. (I got a bit excited when I spotted the mid-day trading on the ASX today!)
It is easy to see why investors are so keen on companies exploring for Uranium at present with just an increase in price over the past few months.
The same type of trend is happening with cobalt and while the price does not look as attractive as Uranium, it's my understanding that cobalt costs quite a lot less to process.
I refer to a link I have already posted with regards to the likely upward price trend of cobalt: http://www.goldeditor.com/articledisplay.php?id=1598.
While there is no doubt that the new venture into Uranium exploration has a lot of hurdles to over come for HGD, one advantage they may have is that they are exploring in the Northern territory, which from my understanding has less regulations with regards to Uranium mining than the rest of Australia.
Of course this may change in the near future, but I wonder if a substantial resource is confirmed in the NT we may see another potential take-over developing fairly quickly.
HGD have inferred they will expand their exploration activities and possibly leave the mining to others.
Cheers
BP:)
Jess9
19-03-2007, 11:12 PM
Solid support at about 7.5c NZ today. No 'read receipt' from Sue re announcement on drilling update so either on holiday or bum down tail up working on recent changes/action, maybe that due diligence stuff :)
etrader
20-03-2007, 11:24 AM
quote:Originally posted by Jess9
Solid support at about 7.5c NZ today. No 'read receipt' from Sue re announcement on drilling update so either on holiday or bum down tail up working on recent changes/action, maybe that due diligence stuff :)
A large chunk of 500k of shares have just gone thorugh in last few minutes up to .08c now, sellers now at .088c
Nice going this morning, asx up to .079c, they are tracking each other well this morning.
Jess9
20-03-2007, 12:38 PM
Its screaming up today - may well hit 10c NZ if pace continues!! Go you good thing HGD, just need this underpinned by an announcement - however one wonders if there is a leaky bucket?
Jess9
20-03-2007, 12:40 PM
Just touched into 10c in AUS (on convert to NZ dollars) !!
Jess9
20-03-2007, 12:52 PM
And now into 10c in NZ - those warrants are looking real good ATM Croesus, worth 3.7 c on the difference and thats with no account for the remaining 3 months to go before conversion...this is all assuming current price and interest is maintained or goes higher - therein lies the risk, hang on or convert!!
Jess9
20-03-2007, 01:05 PM
Re announcement, I see a few new nominee company's in the top 5...wonder if there is one holder behind?
Fodder
20-03-2007, 01:35 PM
quote:Originally posted by Jess9
Re announcement, I see a few new nominee company's in the top 5...wonder if there is one holder behind?
I see a familar set of initials at number 10 on the top twenty[:0]...could it be our very own Sharetrader HGD resident <s>ramper</s> supporter :D
etrader
20-03-2007, 01:40 PM
quote:Originally posted by COLIN
"Upsurge" seems to have petered out!
Let's try some other way of pumping air into the balloon!
Colin looks like a few million shares had a little air left in them in the last few days, did you get any.
Hi Fodder,
You picked it, however I would like to say that I have always indicated that I was not 'far off' the top of the list and that I put my money where my mouth is.
Even mentioned that I picked up an extra 250k parcel in the last few weeks and that I applied for a good 'chunk' of the short fall last November! (so no secrets!)
I'd prefer to call myself a long term investor and I stand by everything I have posted because that is why I bought the HGD shares in the first place. I have been accumulating for well over a year.
I hope for everyone that the price continues to head upwards and we have some decent progress and news in the next few months.
Cheers
BP:)
PS: and I don't often get replies to my e-mails either!
COLIN
20-03-2007, 02:21 PM
quote:Originally posted by etrader
quote:Originally posted by COLIN
"Upsurge" seems to have petered out!
Let's try some other way of pumping air into the balloon!
Colin looks like a few million shares had a little air left in them in the last few days, did you get any.
No. I had a buy order in for the options, for a couple of days, but then chickened out. I am a little sceptical about the sales at 4.5c that took place today - there is such a wide gap between the bid and offer price.
I have only a small portion of my portfolio in the high-risk mining area - at present confined to SMM, NZO & NZOOD. I am a little too long in the tooth for the white-knuckle roller-coaster stuff.
etrader
20-03-2007, 02:31 PM
Colin: Looked at the depth on the options and they look quite iliquid at least with the head shares they have plenty of volume in them. Grabbed a few this morning, was suprised at the upsurge of interest with the top 20. Guess some investors out there know more about the investors on the list than i do, good to see BAP moving up there, maybe a takeover by him is only a matter of time away.
Certainly more interest in this stock, the posters were right that it could hit .10c this week, although that was a high on a small trade.
Fodder
20-03-2007, 03:38 PM
quote:Originally posted by BAP
Hi Fodder,
You picked it, however I would like to say that I have always indicated that I was not 'far off' the top of the list and that I put my money where my mouth is.
Even mentioned that I picked up an extra 250k parcel in the last few weeks and that I applied for a good 'chunk' of the short fall last November! (so no secrets!)
I'd prefer to call myself a long term investor and I stand by everything I have posted because that is why I bought the HGD shares in the first place. I have been accumulating for well over a year.
I hope for everyone that the price continues to head upwards and we have some decent progress and news in the next few months.
Cheers
BP:)
PS: and I don't often get replies to my e-mails either!
Good for you mate...you sure have put your money where your mouth is...all the best with your investment.[^]
redzone
20-03-2007, 03:58 PM
look at this company go...look at the last 2 weeks...SLX.ax...Worth a read if you are into mining stocks
Interesting trading patterns for HTM over the last hour of the day?
Cheers
BP :)
Jess9
20-03-2007, 06:02 PM
Hi BAP - big volume through at day end I see...big rise on both xchanges also...and on very solid volume, noted not to much of a fall during day either. Exciting days ahead!!
Hi Jess,
The volume at the end of day caught my eye too, especially on the ASX with the 3 reasonably large OSXT sales in the last 1/2 hour or so.
With announcements pending, maybe a few speculators anticipating a bit of news by the end of the week. ( I hope they are right if that's the case)
Looking forward to a response to my e-mails also, but more importantly some confirmation to the market of the managements strategy once the new MD is appointed.
Cheers
BP:)
steve fleming
20-03-2007, 08:24 PM
Market Cap (AUD) is still only $15m, (undiluted)
Plenty of legs left in her yet....market cap of $20m -$25m is not unrealistic given its advanced exploration gold assets and potentially very excting drilling program ahead.
Hi Steve,
Yes agreed, however I think buyers will need a bit more encouragement from the management by way of some announcements before they test this one much further.
HGD has been undervalued by the market for a long time and is may be just starting to show some of it's potential and value. (Maybe some investors are realising it is time to climb on board before it is too late!)
I still like the cobalt aspect and hope I"m proven correct some day!
Cheers
BP:)
Jess9
20-03-2007, 09:32 PM
Hi Steve. One thing I have seen in the past on markets, is if a share doubles on big rising volume, it is well likely to double again, and again, and again. Lets see in say six months then?
Jess9
20-03-2007, 09:35 PM
Hi Steve. One thing I have seen in the past on markets, is if a share doubles on big rising volume, it is well likely to double again, and again, and again. Lets see in say six months then?
COLIN
20-03-2007, 11:09 PM
Well, doubling your postings is at least a start, Jess!
Did a search on some of the top shareholders and it seems that several already have extensive investment in exploration and mining in Australia.
Still couldn't find anything on Southern Cobalt unfortunately???
By my calculations over 40 million shares have been traded in the past month, so I would be expecting the sellers to start drying up soon. (I hope so anyway!) Suppose it depends on what happens to the price.
Positive news is what will be needed to keep the share price heading upwards. IMO if we get the resource upgrades anticpated and the NT due diligence is successful we should see the price more than double. Maybe a new MD with good credentials in the Australian mining Industry would be the 'icing on the cake'.
Watching with interest and hoping for some more excitement today.
Cheers
BP:)
etrader
21-03-2007, 09:31 AM
Bap i recommend emailing sue from Heritage gold either to office@heritagegold.co.nz and ask a bit more about the southern cobolt, obviously they are running the project but they will be able to explain a little more about the partner i guess.
underground
21-03-2007, 11:05 AM
quote:Originally posted by BAP
Watching with interest and hoping for some more excitement today.
amen to that =)
etrader
21-03-2007, 11:30 AM
Looking at the report on the 9/3 stating below
Mr Hill says Heritage is undertaking a global search for a managing director.
"We expect to fill the position within a matter of weeks."
"Meanwhile we have several new opportunities under active consideration as we
implement our strategy for Heritage."
One can simply make predictions how far off it would be till they find the person but the company must be confident in stating "a matter of weeks" so this friday that note is two weeks old. Secondly the new opps they are considering, one been "uranium" which was announced the following week, again, several does that indicate further seperate annoucements could follow re: waihi or Colbolt in oz. I'm sure uranium is not the only stratagy in the company now.
Will only be a matter of time i guess that a name change is also in store as they diversify outside their core gold business. I remember when gold was at $400 oz the share price is hardly moved since that, what is the value of the underlying proven assets now it's $630 oz, I'm sure the profit is a lot more once mined as this is basically cream on top, $400 would have been viable, so say there was 300000 oz in underlying resources that would indicate an increase of $69 million. Just basic thoughts , are there any thoughts in terms of this value increase based on investors knowing more about mining.
Jess9
21-03-2007, 12:41 PM
BA happening today, where is the action? Only a few hundred K through so far. Looks like a wait and see, before we go higher?
Lets have a few good announcemnets HGD - is the U a goer or what?!
redzone
21-03-2007, 01:57 PM
Action is on slx.ax....what a run over the last week
etrader
21-03-2007, 02:11 PM
looking at the stats from 31/1 and the current holders talking in regard to the head shares only the first 3 major holders are the same there has been mainly selldowns in the nominee companies or increases in the odd one. Looking at the distributions, there are more holders now in the 100k bracket holding slightly less over all, but the main movement is in the 10k to 100k bracket showing mid tear investors buying in. The only individual endering the top 10 was our own BAP who has put his Balls on the line and has faith in this Company. Great going BAP nice to see private investors holding a good chunk. Also not a 10% increase in overall investors holding stock now over 1200 investors.
Very quite trading today, investors sitting side line looking for the next direction.
etrader
21-03-2007, 03:52 PM
quote:Originally posted by redzone
Action is on slx.ax....what a run over the last week
Wow that is one run alright. Good week and a great day either way if you're holdng slx
Jess9
21-03-2007, 06:06 PM
I understand more drilling is happening right now in waihi with samples being analysed as they are extracted - role on a "good grade find" then and announcement!!
ASX price finished strongly after early weakness, sellers evaporating and buyers taking more interest. Looks good for tomorrow, lets have some more fun, 12c close on NZX?? :D
Hi Jess,
I think 12 cents will happen reasonably quickly assuming the management doesn't take too long announcing any progress or resource upgrades.
However, will management try and time any news regarding resource upgrades with the introduction of a new MD or will he/she make the announcements once they have settled into the role? -This could also coincide with due diligence being completed etc..
As etrader has pointed out Mr Hill - expects to fill the position within a matter of weeks.( I hope that is real time!), so in theory this should happen within the next 10 days.
I quess some people were speculating about this before yesterday's shareholder announcement, hence the rapid rise in share price. We could see this happen on a regular basis until the 'real' news hits the market, as speculators try to 2nd quess an announcement!
Hi redzone, when I looked at slx today, I started dreaming that HGD could be up there one day. But to be honest I think I would sell once it gets to $5 (ha ha)
Hope you've got a few thousand slx to spare, so you can sell at a profit and buy plenty of HGD before it takes off in the next few weeks.
Cheers
BP:)
redzone
21-03-2007, 07:23 PM
SLX No I put a order in at $5.75 and missed ...didnt chase...will never be $5.75 again...Americans have now got coverage and are pumping a hell of a lot higher than this....great company if all goes well....
Hi etrader,
Looking at the top 20 shareholders in HGD, I notice that RBC Dexia and Lighthouse Mortgages have dropped off the list. Lighthouse held 6 million shares, which was the same amount that was traded in one large block back in Feb.
When I was searching the different companies on the list I noticed that Lighthouse did not seem to have a 'real' explorer/mining portfolio compared to some of the others. I also noticed that Fortis picked up another 700k along the way and while Montagu Capital have slipped away, we have the addition of Beirne Trading and Adam S Davey. I wonder if he participates in this share forum?
Remainder of shareholding list remains reasonably similar overall.
I still think Southern Cobalt is the key, so I''ll take your advise and e-mail the HGD office again, although I generally don't have much success in getting answers to my questions. (maybe I ask too many 'market sensitive' questions).
My most recent e-mail was a request that HGD provide some info to the market on the progress at Broken Hill and what the new strategy for the Waihi resource is likely to be now that the MEM IPO has been abandoned.
To date there has been no reply, so I hope they are busy making sure the new strategy will be a success.
Anyway tomorrow is another day and the announcements we are all anticipating will be the key to whether we see the share price get well into the double digits as we all hope.
With the potential resources that are being targeted/suggested by management, we should see the share price go a lot higher yet. IMO we could see a tripling in price within 3 months if the news is positive.
As I have noted previously, do the revenue sums on 33 million pound of cobalt at US$30 and 500K oz of gold @ US$650 plus some silver - take away the cost of production etc and you still have a fantastic profit potential, either for HGD direct or with a joint venture partner and I haven't even considered the Uranium prospect or the Northland permits.
Something to think about I hope!
Cheers
BP:)
Jess9
21-03-2007, 09:09 PM
BAP - phone Sue at Heritage re your questions, her or Peter are happy to chat generally to shareholders. Sue may have had email problems in the last few days, as my request for info on warrant conversion was not read and she said (when I phoned) she had not received it. So phone.
I accept I am positive on HGD, and have been for some time now, like you - however just looking at the share/volume chart for HGD/HTM it seems blood*y obvious something very significant is up, and all after that 6m XT. I think this one has long legs yet.
BAP do you chart? How does HGD/HTM chart compare to other long legged winners? Or is there no dirty great anomaly staring me in the face from this chart over the last, what 6 weeks or so, and the recent “fun” has been purely random?
Jess9
21-03-2007, 09:18 PM
BAP - re your 500oz make that several million. Good chance that Waihi permits holds alot more than 500 when enough drilling is done. Good luck to our drilling team, let them hit the next Waihi motherlode!! Be good for Waihi too : ) hey, I'm not entirely self centered ; )
Hi Jess,
Agreed, however I'm only suggesting how undervalued HGD already is, based on their already publicily announced resource targets. If we include the potential @ Karangahake we can easily add another million oz and more.
I do compare charts for similar/like companies, but at this stage I think it is too early to confidently suugest that HGD is heading upwards indefinitely. The signs are there and if the announcements are positive over the next few weeks and months, there will be the possibility of HGD becoming the next CDU or SMM, but that is getting a year or so ahead of ourselves. (I think by the end of April we will all be a bit wiser on this one!)
For me the fundamentals are there for a junior explorer, they have known resource levels with further significant potential and they have diversified into other resources other than gold. (what could be better than resources of gold, silver, uranium, copper and cobalt, -other than nickel that is).
Now we need the managemnt/MD to take that potential and create some shareholder wealth as this company emulates the success of the SMM/CDU's/ or even SLX.
The key will be positive announcements in the next few days/weeks to keep the current momentum!
Cheers
BP:)
Jess9
22-03-2007, 07:35 AM
Hi Croesus, I got the following from Sue Sangster...
-----------------------------------------------------------------
Warrant conversion price is 6.3c to convert each warrant to a FPS.
Please send your payment and a letter requesting conversion and including shareholder details to:
Link Market Services
138 Tancred Street
Ashburton
--------------------------------------------------------------------
Sue says she will instruct Link to batch all requests and process on the Friday of each week from now on, conversion seems relatively easy and quick - assuming current FPS up trend continues!
J9
croesus
22-03-2007, 09:14 AM
Thanks Jess.
will hold on converting till June.
Certainly this last 10 days has been a watershed for this company........after researching other similar ish co,s in Au, I am now convinced we are on the cusp of a major price increase.....whilst some handwringers may accuse me of ramping..... 30c is not out of order for this co... without taking any account of the U.
Time will tell
Croesus.
etrader
22-03-2007, 09:30 AM
Bap: Where there is Cobolt, is it ever evident that there is Nickel as well ?. Cobolt demand is rising and this looks to be an untaped part of the HGD mix.
Yesterdays volume was very light.
Had some good exposure in oz of late with the papers so the public are coming more aware.
CAS Number: 7440-48-4. Cobalt is a naturally occurring element found in rocks, soil, water, plants, and animals. There are non radioactive and radioactive forms of cobalt. Non-radioactive cobalt, referred to as stable cobalt, is used to produce metal alloys used in the manufacture of aircraft engines, magnets, grinding and cutting tools, artificial hip and knee joints. Cobalt compounds are also used to color glass, ceramics and paints, and used as a drier for porcelein enamel and paints
Just grabbed this off the web for those who don't know about Cobalt, also used in cell phones etc.
Hi etrader,
I believe HGD is now trying to position itself as an expansive resource company rather than just a gold explorer. Good news!
While there is no doubt that gold exploration plays a major part in the company's potential success, the diversification into other alternative resource exploration must be a positive advantage for shareholders. Just look at the market reaction to the possible Uranium licences. HGD is back on the watch list for investors again.
Where there is Cobalt, is it ever evident that there is Nickel as well?
To be honest I'm not sure, but several Nickel mining companies also supply cobalt to the markets, so it maybe a possibility. (any experts out there!)
Really I'm just interested in the future of Broken Hill and the potential wealth it could create for shareholders. The management must take advantage of the huge price increase of cobalt. Globally this market has huge potential and I anticipate an IPO at some stage this year. I don't believe the price of cobalt will get any cheaper in the next few years, just look at the links on my previous posts.
It is also good to hear that the Karangahake drilling program is progressing. If we get the results suggested, we will be smiling for a long time. With the gold price looking steady at above US$600 per oz there is obviously dollars to be made if we have a million oz resource.
IMO, long term we will see a Heritage Resources company (the parent) being established with 3 subsidiaries being listed as Heritage Gold/ Heritage Cobalt & Heritage Uranium or something similar. Each will have their own individual management teams and experienced CEO/MD and they may even take the step towards mining each of their own claims. However once any resource levels are confirmed expect a few interested parties/miners to start 'knocking' and making take-over bids. (Which is all the more reason to split the resources into separate co's)
Cheers
BP:)
I wonder if we could see a similar story to the link below for HGD over the next year!
http://www.smh.com.au/news/business/holy-moly-miners-share-price-doubles/2007/03/22/1174153256571.html - Good news for investors in Moly!
I hope it's HGD's turn soon! Also this just shows how explorer and mining shares can easily rocket upwards, even when the co's are relatively unknown!
Maybe the Broken Hill cobalt resource and/or the Uranium exploration could be the big step forward!
Cheers
BP:)
Jess9
23-03-2007, 02:00 PM
Slow day today on HGD - however depth does look like expectation for a next surge to go higher is there. Waiting... bit like fishing really : )
Hi Jess,
Market looks like it is waiting for more news to be announced. ( I think you may be better off fishing for a few weeks!)
30 days for due diligence to be completed on Uranium licences, so I wouldn't be expecting any news for another 2 weeks yet and I suspect they will release the news about the new MD to coincide. Either that or they will give a full update about both with the release of the quarterly report due at the end of April.
While I am hoping for some updates earlier, in reality these things take time and it takes more than a couple of weeks to complete the due diligence process and to find a CEO/ MD - especially if you want someone with credentials and experience.
But who knows! We weren't expecting last weeks announcement regarding the Uranium exploration so maybe the management will surprise us again.
Cheers
BP:)
etrader
23-03-2007, 05:03 PM
Small rally in last hour for no reason, guess a few spec traders were lining up for a possible annoucement. up 15% in last hour on thin volume.
Jess9
23-03-2007, 07:35 PM
Bit of depth building near mid 8's on ASX near close, and sellers lining up over 10c AUS - assuming the U is a go we may well se AUS 15c touched in the next few weeks. That should make you quite happy Croesus!! You'll be able to upgrade that old 'warrant' truck for a nice new shiney beamer ; )
etrader
25-03-2007, 10:33 AM
http://www.smh.com.au/news/business/paladin-kept-from-summit/2007/03/23/1174597885983.html
Link above gives more weight to the value of Uranium companies assuming when due dill is complete that they move forward on this project, and as waihi publishes good results, Cobalt info starts to emerge and options are converted putting cash in the bank for development, and lastly but more importantly the MD has weight, experience and cleans up the board, gives shareholders a clear direction of the companies intentions then i think we will look at the old share price moving by 1/2 cent here and there all history. HGD is still a very small caped co but with underlying assets worth many times it's cap net of mining costs. Investors or compeditors must know that underlying value, but it's going to take some clear direction to relinqish that value below.
Jess9
25-03-2007, 11:26 AM
The main reason for current excitment is the board/management restructure, and underscored by the chance to diversify into a lucrative Uranium resource.
...approx 3-4 years ago HGD upped their resource from 109k to 205k in Waihi, back when the gold price was below $400US, and on that resource upgrade they were trading at around 10c AUS. I think the price twindled on lack of action after that.
The market is picking the board and management change at the very top is HGD key shareholders demonstrating that it is now time to move promptly to realise the value in HGD's gold, cobolt and maybe Uranium assets, which have been discounted for past inaction and therefore significantly undervalued. This even more so now that gold is more than 50% higher in price, Cobolt 300% higher and Uranium ??
Therefore we could have an early turn-around coy here and if things all come together, there may be several of us suprised where this one may go. But that, is speculation at this stage of the game - but like I say the ingredients are there, as both you (etrader) and BAP are picking also.
Lets see AUS 15c on a positive U announcement then, and after that...
etrader
25-03-2007, 11:46 AM
Jess i emailed the company and requested underlying value, they said that the certified resource at waihi like you said is 205000 oz, it costs $350 an oz to mine, lower than macreas in the south island, so that shows with current prices a resources of $70 million net of mining costs, added to that 800000 oz of silver, the cobalt and "U" to follow, is this $100 plus net value underground. As you mentioned years ago they stated that value, and lack of strong management have not relised the value to date, the only good thing that time has done is the resource has doubled in value since, making i guess a marginal net mining value, to a very good net mining value. It would be interesting to see them lock in higher values on their gold so it gives shareholders security knowing the value going forward.
I have been trading this stock for weeks now and have done very well on each trade, but am now sitting on a very good holding which will go in the bottom draw for a while. It's a very good trading stock for short term dips and peaks, buy on the dip, let the volume build and sell near the top again.
Below is one of the holders in HGD with links to Peter Atkinson
controled through Phophecy mining one of the top holders in HGD, this in addition to his personal shares, so he controls quite a chunck of the firm.
Total Number of shares 27,621,908
Number of Shares 21,413,830
Shareholder(s) ATKINSON, PETER ROBERT 541 Parnell Road, Parnell, Auckland
Number of Shares 1,590,920
Shareholder(s) NZCSD LIMITED Po Box 2099, Wellington
Number of Shares 1,590,920
Shareholder(s) INSIGHT INVESTMENTS 33 Old Broad Street, London Ec2n 1h2, England
Number of Shares 1,056,880
Shareholder(s) SEMMENS, PETA JOY 541 Parnell Road, Parnell, Auckland
Number of Shares 960,800
Shareholder(s) WILLIAMS, JANE H 41 Vieway, Nedland 6009, West Australia
Number of Shares 300,000
Shareholder(s) HERITAGE GOLD N.Z LIMITED 541 Parnell Road, Parnell, Auckland
Number of Shares 240,200
Shareholder(s) HOPKINS, C M Po Box 219, Como 6152, W Australia
Number of Shares 240,200
Shareholder(s) HOPKINS, C W Po Box 219, Como 6152, W Australia
Number of Shares 120,068
Shareholder(s) F H NOMINEES PTY LIMITED Po Box 44 Collins Street, Po Mel 3000, Australia
Number of Shares 96,080
Shareholder(s) MCMANUS, T C 39 Birdwood Parade, Dalkeith 6009, W Australia
Number of Shares 12,010
Shareholder(s) WILLIAM, D J 41 Vieway, Nedlands 6009, W Australia
Jess9
25-03-2007, 02:45 PM
that summarises things nicely, etrader - in the past HGD, to my mind has focused more on corportate structure change than on JORC'ng up resource to allow for logical developement. That is not to say they havn't done resource/permit work - as they have, and I accept they are constrained by working cap requirements to do this etc, however now is the time to drive developments forward!
Also - while your in ground value above is on known - the wild card is surely how much more considering the JORC to date and the prospectivity in that area. If HGD can raise JORC to 750K oz - 1m, which is possiby, I wonder how that values their Waihi interests vz other similar emerging explorer/miners? The nice thing on Waihi, is that it is 100% owned by HGD.
Hi Jess & etrader,
Just caught up with your discussion today and it's good to see we all agree that it is time for the HGD management to ‘aggressively develop’ the underlying potential of the company.
HGD has been undervalued by the market for several years and while we can discuss the particular reasons for this until we are ‘blue in the face, we can’t change the market perception.
The big question is:- Has the management now got what it takes to make this company prosper?
It’s the recent announcement about exploring for Uranium that has suddenly lifted the exposure of HGD again, so can management take advantage of this and also highlight the other prospects that are seemingly hidden away from most on-lookers, -other than a few of us faithful. (You & me)
With regards to the gold resource at Waihi, it seems the market ‘forgot’ that HGD already had a JORC compliant 205K oz gold with 800K oz silver in what is arguably the best known gold mining area of NZ, with huge potential to expand on those targets,given the capital to do so.
Unfortunately one of the problems is that, HGD management has tried to work with limited cash/capital for many years, rather than going for gold. - excuse the pun!
We have already done the maths several times on this forum, but to refresh, IMO to take an explorer to miner we probably need in excess of 650K oz gold to be confirmed(10 years of 65K oz gold extraction per year is a good rule of thumb to make a mine load pay, and the silver is a bonus.). With suggested targets for the area being over a million oz I suggest that we are well on our way to achieving mining status.
With gold at US$650 per oz the underlying value of gold resource after production costs at Waihi could already be valued at US$615 million + another US $16 million for the silver.
Now add to that a Cobalt resource at Broken Hill, which could be worth over US$ 1 billion in revenues to the joint venture group, of which HGD is a 33% shareholder and we could add another $US330 million of revenues to the equation, less the costs of production. Lets be conservative and add a mere US$165 million to the total.
So you must be catching on o my thoughts when we add a bit of Uranium to the equation. So due diligence will take us to the 2nd week of April and we need a MD who will take advantage of all this potential. (may be I should apply for the job, but HGD don’t pay as well as my existing job, so why apply?)
Whoops! There lies a problem! To get a person with good credentials and experience you have to pay the price salary ‘wise’ (much more than $100k per annum)and a provide bonuses/options for achievement. (not to the extent of Mr Weldon of course!)
So to get back on track, if we consider the prospects correctly and at there present value we could conservatively be valuing them at shares at around 40-50 cents before considering the possible Uranium licences IMO.
So, guys you are still undervaluing HGD by a huge amount. But the market is always right (yeah right!)
IMO we should all be accumulating or holding (I will be!). Don't sell- give it another 3-6 months and make the buyers pay if they really want a piece of the action!! There will be some action over the next few months IMO!
If your selling at less that 12 cents tomorrow you will have missed a huge opportunity to make some real money. But maybe you'll let me make all that capital gain when we get to 40c!
Cheers
BP:)
jonny5
25-03-2007, 10:20 PM
Hi all, I've been "actively lurking" in this thread for some time. Has been an interesting ride. Am always interested in fellow holders thoughts etc, and am sorry for not posting my own.
My main concerns are also around management, which we all know is key! Getting the right person into the seat.
BAP if I may be so brash, what field of work are you in?
Hi jonny5,
I'm not sure that I should let out that 'secret' on this forum! (One surprise a week is enough). However I will say that I am a CEO of a privately owned NZ company. I report to a Board of Directors and work with 40 other people.
The business I'm involved in, doesn't have anything to do with mining, but like most business, it does involve a certain amount of exploration!. (and also like most things in life today, it isn't hard to find out your answer on the net, if you want too look!)
More importantly look at the fundamentals of HGD, decide whether you can deal with the level of risk involved( there is a level of risk, but that is what being in business and investing is all about and usually the greater the risk the greater the reward or loss!) . Do some homework(research) first and then make the decision to buy in or not.
Lets all hope that HGD share price is on a continuing upward trend and other investors start to see some of that potential that Jess, etrader, steve, croesus and a few others have alerted us to! As you know I'm already well in and prepared for the risk! Just look at the potential that has been discussed today.
Cheers
BP::)
etrader
26-03-2007, 10:56 AM
If your selling at less that 12 cents tomorrow you will have missed a huge opportunity to make some real money. But maybe you'll let me make all that capital gain when we get to 40c!
Cheers
BP:)
[/quote]
Well Bap there are seller below the 12 cent mark, i'm happy about that as it's a time to top up my holding today which i've bought some of what i require sub .10c today. They are trading at a marginal discount to oz close with the cross over.
croesus
26-03-2007, 11:22 AM
Pretty much concur with your views BAP.........even subtracting another 25% to be ultra conservative........we are still looking at a S/P in the 30c region.
The next positive news will be the "tipping point". imho
Query....is Australia trading as per normal today..? or have they just lost their daylight saving ??
etrader
26-03-2007, 11:39 AM
quote:Originally posted by croesus
Pretty much concur with your views BAP.........even subtracting another 25% to be ultra conservative........we are still looking at a S/P in the 30c region.
The next positive news will be the "tipping point". imho
Query....is Australia trading as per normal today..? or have they just lost their daylight saving ??
they've just lost day light savings
Hi etrader,
Glad to hear you picked up another parcel at what is still a very cheap buying price. Its only my opinion but we should be looking at the share price heading towards 40 cents if we have the positive announcements we expect over the next few weeks and months.
So good buying at today's prices!
Cheers
BP:)
etrader
26-03-2007, 12:51 PM
[quote]Originally posted by BAP
Hi etrader,
Glad to hear you picked up another parcel at what is still a very cheap buying price. Its only my opinion but we should be looking at the share price heading towards 40 cents if we have the positive announcements we expect over the next few weeks and months.
So good buying at today's prices!
Cheers
BP:)
Cherz BAP
Yes got them initally at .095c and just picked up the last few at 10c to close of my buy so still ave of .0956c buy, trading at a marginal discount now oz has opened good volume in first hour.
The Arbitrators will be taking out the .10c nz as it's 7% below cross over. Easy money for them. just hit .094c oz which is .107, just hit a peak so far in nz of 11.5c they've softened down a little in oz now, people are obviously positioning their portfolios ready for the next leep
Jess9
26-03-2007, 01:42 PM
Cheaper to by warrants this afternoon than heads!! That makes a nice change.
Jess9
26-03-2007, 01:45 PM
hey, even the 2008 options are in the money!!!
jonny5
26-03-2007, 01:46 PM
This lady has legs that go all the way up :)
etrader
26-03-2007, 02:11 PM
another good morning and still pre annoucements, wait till the serious info arrives with MD and company structure going forward.
Still fare buying at 10.5c at the moment.
Jess9
26-03-2007, 04:19 PM
Looks like the U may be a go - or else why would you hold a special Shareholder meeting, or is this too much to infer?
jonny5
26-03-2007, 04:34 PM
Announcement but not available on site? Am I missing something?
Or just being impatient / overly watchful?
croesus
26-03-2007, 04:58 PM
Not happy with 20m shares going at 3.5c au........would rather that be offered pro/rata to all current S/Hs.
Thoughts BAP and Jess
etrader
26-03-2007, 04:59 PM
Got the details via an email after close of business on there mailing list. It's just previously annouced issue of 20 mill shares to sophisticated investors, so there won't be any extra money existing holders will need to fork out.
3 Resolutions pritty simple, but the main reason is for funding for Uranium study, they will raise 700k off it.
Looks Good
croesus
26-03-2007, 05:07 PM
Go to HTM on Stockness ..details there.
Jess9
26-03-2007, 08:14 PM
quote:Originally posted by croesus
Not happy with 20m shares going at 3.5c au........would rather that be offered pro/rata to all current S/Hs.
Thoughts BAP and Jess
Seems silly at present levels, but the did announce that before the excitment to date, so they must at least put it to a vote I guess - then its up to the shareholders to say yay or nay. You would think there may be better offers going now however...and what about the warrant conversion. Assuming they get converted etc, this will provide twice as many funds by 26 June. Vote no, they will get $$ elsewhere now.
Croesus, I agree that it always leaves a 'bad taste' for existing shareholders when a company goes ahead and places additional shares to the market at discounted prices without offering them to existing shareholders first. We had a similar issue late last year, prior, to the pro rata rights issue.
I think all 3 resolutions will be passed by shareholders, the first 2 resolutions are done deals. However we could probably voice our concern by contacting the company and offering to take up part of the April placement of shares(resolution 3) at the agreed discount rate.
I would be keen to add another 250k to me holding at under NZ-4c.
I understand that they will need the additional capital if they are to progress with the Uranium exploration and meet the conditions of the 'agreement' and there is still a lot of drilling to be done at Waihi. All good stuff,.
As Jess points out, HGD should be acquiring additional funds by end June assuming warrant conversion is fully taken up, so my only conclusion is that the Uranium agreement is likely to proceed reasonably quickly and that the additional new capital will ensure developments continue to progress quickly, without hinderance. This may also be another reason the ASX market has taken a 'rapid new interest in HGD.
Anyway, as we are all sophisticated, professional and habitual investors we should not have any problem in securing our quota of the 11,500,000 shares on offer in the April placement.;)
IMO there is more excitement ahead.
Cheers
BP:)
Jess9
26-03-2007, 09:55 PM
Another thought, this was never a shock announcment - it was clear up front and issued with the Uranium announcement, to ensure the new project would have funds etc.
Think on this, if the U adds 1/10 of the value it has to Summit - no one will care if the placement goes ahead now.
Be interesting to see what the mraket thinks when reminded of this, maybe a opport. to enter if you see good value etc going fwd, be interesting to see direction by weekend, renewed strength may even add further support for the Uranium licence and Heritages new board management direction.
Still reckon 15c AUS is likely if U gets the go.
Hi jess,
You're right, there was no surprises with this announcement as the company was upfront with their intentions to issue more shares to fund the Uranium venture. (although it is unfortunate they didn't give existing shareholders a change to pick up more shares as per see my previous post)
I suggest that they must be very confident of the due diligence process with this venture being successfully completed as they have scheduled the shareholders meeting for the same date.
We should have an update on drilling progress at Waihi soon. I understand that drilling is taking a bit longer than normal, due the the hardness of the rock being cut (good sign apparently) and they are sampling as they progress. lets hope they meet the targets they have forecast, I confident they will.
So business as normal until the next announcement! I would like to see more progress on the Broken Hill Cobalt project, but I'm happy with anything that starts to get this company on track and realsiing it's potential. One thing will lead to another, especially if the Uranium is a goer!
Cheers
BP:):)
Jess9
27-03-2007, 08:30 AM
Gold through 660 USD/oz today, rises are less dramatic than a few months ago, but it also doesn't seem to swing the other way as much also. Trend looks to be slowly heading higher for sometime yet. Be nice to see $700 gold again.
Re last comment - when the 3.5c AUS placement was announced that was market value.
etrader
27-03-2007, 09:23 AM
BAP i had asked the company about Cobalt and they said drilling should be complete by end of the 3rd quarter this year, not sure if thats financial ie December or end of september. The meeting on 12th april is 30 days exactly which is the period it said it would take for due dill so one could expect a raft of things that day from funding for uranium, to possible options for waihi, poss a md intro unless it's been announced before that. Not sure if it is of any interest but they're having a board meeting today at the head office, could this be a lead up to the next annoucement.
Jess9
27-03-2007, 11:06 AM
I checked with the coy and the shares were all placed 2 weeks ago - just before the big surge in price/volume (over 18m traded in a few days etc). Therefore it is likely most short term holders from that placement have already sold out into the rising price - then watched it sail on further.
So the ratification is really a done deal and the placement likely already has been digested by the market. This is my guess anyhow.
Should be a good few weeks ahead on upcoming news
Hi Jess,
I received the same info this morning and came to a similar conclusion. Also suggests to me that the Uranium deal is all go.
Cheers
BP:)
Jess9
27-03-2007, 04:19 PM
Sitting just over 10c most of the day, with good support. Nice going HGD : )
etrader
27-03-2007, 05:25 PM
quote:Originally posted by Jess9
I checked with the coy and the shares were all placed 2 weeks ago - just before the big surge in price/volume (over 18m traded in a few days etc). Therefore it is likely most short term holders from that placement have already sold out into the rising price - then watched it sail on further.
So the ratification is really a done deal and the placement likely already has been digested by the market. This is my guess anyhow.
Should be a good few weeks ahead on upcoming news
Jess do you mean the 20mill have already been issued to those investors and they could have sold a large number of them or are they still to be issued.
It's just timing, hgd have often issued shares around that level it's just that this time they've risen so fast, good for them if they were the lucky people to have bought, i think as another poster said, if the company goes up 2 or 3 fold from todays prices who cares about what someone else made of their issue, the main thing is all us current holders backing hgd and are confident their purpose of buying is based on good underlying assets worth many times their cap then we will all be in for a nice ride, often the people at these levels will benefit one the general papers start hitting on this stock and mums and dads pour their $ into it, current holders can exit and take a nice 300% gain if they choose. No new info out from todays meeting, picking pre 12 april a volitile trading period as investors position their portfolio to suit.
Jess9
27-03-2007, 06:30 PM
I think all were placed in AUS on the ASX about two weeks ago, and therefore "staggers" will have long sence left the HGD building (see volumes over this period).
Jess9
27-03-2007, 06:36 PM
ASX closed strong tonight.
COLIN
27-03-2007, 08:51 PM
quote:Originally posted by Jess9
ASX closed strong tonight.
Jess, I don't understand your post, HTM (ASX) actually closed down! And there were no trades on HTMO.
Jess9
27-03-2007, 09:57 PM
meaning...to my mind the current price level 10c NZ etc is moving into consolidation phase, less and less likely to slip back etc, and starting to think about the next run up. Etrader mentions the "band wagon" effect...this could well see HGD shoot further than expected in the very near term.
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