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FRED
02-04-2004, 12:00 PM
A steady rise of late, with no announcements. I wonder if a settlement with the Government re litigation is in the wind?

With the head shares now above the final warrent payment figure they maybe worth a look. 39 months to run with the warrants.

FRED

croesus
02-04-2004, 12:48 PM
It is now cheaper to buy the warrants and pay the 7 c down the track...
plus you get the gearing factor....
announcement pending I am guessing.
disc own several truckloads of warrants

FRED
02-04-2004, 01:08 PM
Agree. Now that the warrents have only the final payment to be paid, they are basically just an option. An option pricing model can be applied. At 10 cents for the heads the warrents come in at 6.5 cents. Using a volatility of 90 that metastock calculates.

Seem cheap with squat on offer.

I think the final call is 8 not 7

FRED

croesus
02-04-2004, 04:03 PM
Pretty sure its 7c Fred..... anybody know for sure? ... my info is filed away.
Have heard rumours re the Karangahake site .. basically there is a lot more gold then thought... but I will say no more... maybe some one can add to that
disc several truckloads of warrants.

croesus
02-04-2004, 04:15 PM
Chris Castle (aka the Examiner) in the Sunday Star Times on I think April 28.. almost 23 months ago..wrote a thought provoking piece on HGD they were then selling for about 3c....
If you read this Chris... your current views on this co would be appreciated

croesus
07-04-2004, 07:50 AM
Interesting stuff on HGD on the Australian Sharetrader forum this morning...
disc hold warrants

The Examiner
07-04-2004, 11:21 PM
Hi Croesus,

I've noticed the increase in the share price and as the holder of a few warrants I'm able to come to terms with it pretty easily. Apart from a long overdue adjustment to what was a market capitalisation far too low for the prospectivity of the company's assets, I can't really explain what is happening. But I don't now really follow either this stock or the Waihi larger picture so can't really add any new insights.

Cheers

CC

GR8DAY
08-04-2004, 09:57 AM
own a few myself.......gotta' be one of the best ( if not THE best) performing stocks so far this year.....and that's on no big news?
what's gonna' happen when THE real news is released? (like confirmation of increased gold reserves....oops...and maybe a positive settlement re: coromandel)
didn't an asian group very recently buy big time into this little co.??? maybe someone could confirm this with a bit of info' on who the group is and could they know more than jo kiwi does on Heritage?

moimoi
22-04-2004, 02:46 PM
i seem to remember HGD provided the back door list for cadmus??

does anyone now if HGD still holds cadmus shares??

cheers
moi.

PrinceofWhales
22-04-2004, 03:44 PM
HGD have sold their Cadmus shares.

blacksheep
03-06-2004, 03:51 PM
HGD announced it has "delineated a resource of 109,600 oz of gold and 438,400 oz of silver in the Talisman Mine near Waihi at a discovery cost of NZ$3.70 (US$2.30) per oz.

"The recent underground channel sampling programme, predominantly in the No.8 Level of the Talisman Mine and extending into the 5A Level of the Crown Mine, is the first in a three phase programme to define a gold resource for development feasibility.

"All channel sample assays and geological data obtained during the programme were modelled and a computer based resource estimate produced. The resource exists in four mineralised areas of the known vein systems, with two sections in the Maria vein (Woodstock and Dubbo sections), one in the Mystery vein, and one in the Crown vein."

The "TALISMAN MINE RESOURCE ESTIMATE SUMMARY" included "MARIA VEIN - DUBBO SECTION: Category: Inferred: Tonnes:28,100, Grade:28.1g/t Au 78.5g/t Ag, Ounces:25,400 Au; 70,900 Ag. Category: Indicated Tonnes: 50,900, Grade: 27.2g/t Au 76.9g/t Ag, Ounces:44,500 Au 125,800 Ag[...]

"TOTAL RESOURCE: Tonnes: 335,400 Grade:10.2g/t Au; 40.7g/t Ag Ounces:109,600 Au; 438,400 Ag."

Notes on Resource Estimate: 1. Channel samples cut using diamond saw, and chipped by handheld methods and dispatched to laboratory for assay. 2. Gold analysed by fire assay using 50g charge by SGS Laboratories, Waihi. System of standards and check assay confirm tenor and integrity of assay database. 3. Bulk density of 2.65g/cm? determined by water displacement method on 6 representative quartz vein samples. 4. Estimate calculated using inverse distance squared method with cell size of 5m by 5m by vein width. 5. Indicated mineral resource estimate based on maximum of 25m from any sample position. 6. Inferred mineral resource estimate based on maximum of 50m from any sample position. 7. Estimate supported by comparison with nearest neighbour method. 8. Ore zone defined by geology, no lower gold cut off used. High gold assays were cut to the 95 percentile value. Phase 2 of the programme will focus on the levels of the mine 100m above and below the No.8 level and will involve underground diamond drilling as well as channel sampling. This work is aimed at expanding the resource base substantially and raising the resource category. This report has been compiled by Mr Graeme Fulton and Mr Murray Stevens. Mr Stevens is an independent consulting geologist. Mr Fulton, of Terra Mining Consultants Limited, is an independent consulting mining engineer. Both are corporate members of the AusIMM, and have sufficient experience in the style of mineralization and deposit type being reported on and the activity being undertaken to qualify as Competent Persons as defined in the 1999 edition of Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC code). Mr Fulton and Mr Stevens consent to the inclusion of the resource estimate in the form in which it appears in this report."

Cooper
03-06-2004, 04:08 PM
Does anyone know what the cost of getting that stuff out of the ground is (roughly)?

craic
07-07-2004, 08:58 PM
Put an order in for a few of these tonight on the basis of the article in the Dominion on Tuesday of this week. This is going to be my one wild speculative bet.

roaddog
08-07-2004, 10:37 PM
Been selling my HGD shares for 10-12 cent paid 4 cents for them its time to take some profits:D:D

Cooper
09-07-2004, 01:10 AM
When you see the POG in the morning roaddog you may wish you hadn't...

etrader
09-07-2004, 07:58 AM
quote:Originally posted by Cooper

When you see the POG in the morning roaddog you may wish you hadn't...

Sorry Cooper what is POG have not heard of that before

lambton
09-07-2004, 08:10 AM
Price of Gold (POG) $406.75 this morning.

Cooper
09-07-2004, 09:10 AM
The fact that it's clearly over $400 is significant, therefore goldies like HGD should be driven up by sentiment.

croesus
22-12-2005, 05:40 AM
I see Xmas came early for some, ... 600k of HGDCA at point 0.008 traded yesterday.... my understanding is that HGD will be digging out the yellow stuff by this time next year... anybody able to comment on that

croesus
12-01-2006, 01:57 PM
Now a buy order for 100k HGDCA at 1.5....momentum in the headshares.... a bit of hype and this tiny stock could double. and double again

disc own the odd one or 2

croesus
13-01-2006, 11:46 AM
Can anyone confirm the new final figure and date (actually I think the date is unchanged)
for taking up HGDCA warrants... I suspect the money to pay dropped after the recent cash issue,
Thanks in advance.

Jess9
18-04-2006, 09:27 AM
Anyone like this Goldie? And why?

From a quick look, they have good prospects (gold resource) and 1/3 interest in an AUS cobalt mining company (possible IPO)?

trackers
22-04-2006, 10:53 AM
I agree Jess, AUS is experiencing a phenomenal resource boom, and poor old goldies like this aint getting even the slightest piece of it.

gold $400 -> $600, cant complain. Also, with an interest in a (currently unlisted) AUS minerals company, looks good imo.

Watching with great interest.

trackers
23-04-2006, 08:23 AM
Time for a bit of analysis me thinks:

HGD Share Price (www.stocknessmonster.com)
http://img399.imageshack.us/img399/63/hgd3ec.png

Gold Price (www.kitco.com)
http://img163.imageshack.us/img163/9284/au00pres3oq.gif

trackers
23-04-2006, 08:27 AM
Now, if we look at the huge gains made in the spot price of gold, from a period of huge gains (say SEP 05?) we see a gain of 50% in the price of gold ($400->$600)... the price of HGD back then was 7c, it is now 6.5c, now I guess we have to look at why HGD has stagnated...

Disc: Do not hold, HGD, never have, but probably will shortly ;)

trackers
23-04-2006, 08:30 AM
Last financial report from HGD, half yearly posted end of JAN:

31/01/2006
QUARTER

REL: 1655 HRS Heritage Gold NZ Limited

QUARTER: HGD: Third Quarter Cashflow Report

Quarterly Cashflow Report to 31 December 2005.

Item ; Current Quarter $NZ ; Year to Date (9 Months) $NZ

Net operating cash flows ; (391,163) ; (1,220,103)

Net investing cash flows ; (1,919) ; (19,331)

Net financing cash flows ; 972,557 ; 1,168,064

Cash at end of quarter ; 715,974 ; 715,974



********

So, not great, but an improvement nonetheless...Now I guess the only question can be, when are these guys going to pull some of the good stuff out of the ground?

trackers
23-04-2006, 09:02 AM
what....the hell..is going on here.....??

NZX
http://img399.imageshack.us/img399/63/hgd3ec.png

ASX
http://img459.imageshack.us/img459/1963/htm5hj.png

Jess9
23-04-2006, 10:33 AM
Hi Trackers, thanks for the above.

HGD is an high risk goldie, and that reflects in their price right now.

Why high risk, well compared to some other coys (which have had better recent runs) say PNA OXR, HGD is miles away from producing and needs to increase its resources (to justify plant construction etc) and also firm up its resources into more measured reserves (to allow for a bank feasibility study etc). Also I don't think this coy/management has any track record yet (accept due to explorer status) as a producer.

The other thing to consider is their balance sheet, no significant cash reserves but a recently announced significant drilling programme to fund. Where is the money to come from? Maybe another discounted rights issue? The last such issue seemed to severly dent the price (10c back down to 5c)!

This one could be a punt, but I wouldn't risk the house on it yet. But where there is greater risk, theoretically comes a greater chance at reward?

Disc: Bought a few last week.

trackers
23-04-2006, 01:18 PM
Well I agree absolutely Jess... Definitely a speculative bet.

Their reports indicate that they might actually start pulling some of the good stuff out in the 2nd half of the year, wouldn't that be novel! If that looks to be the case, I'll definitely send some coin over to the ASX (speculative bet + arbitage + exchange rate)

Jess9
23-04-2006, 02:05 PM
ASX may be a cheaper entry, some trades went through at 4.7 to 4.8 Friday..below what I paid on the NZX (conversion accepted etc) : (

liffey len
23-04-2006, 04:15 PM
Spent $5,000 on this one three or four years ago on a Dominion Post article. The company psition back then was that they expected to extract yellow stuff in reasonable quantity from reprocessed tailings in 2006. This one is my lotto fund and I wrote the investment off when I made it.

Jess9
23-04-2006, 07:48 PM
Hi Liffey Len

Maybe 2006 will be a lucky year for all shareholders then ; )

Jess9
24-04-2006, 05:59 PM
Interesting (high) volume on the ASX today. My thoughts would be someone over there had to sell and had to take what was on offer.

If this overhead has now been cleared, then I think a sharp rebound is on the cards for this one.

Depth in sellers only starts above 5.7c AUS and about 7c NZ for any volume.

Other goldie's have put on 50% over the last month or so, so there is definetly some room for Heritage to move up etc. We'll see by the weekend...

Jess9
26-04-2006, 05:31 PM
Goldie's (accept HGD/HTM) roaring up again today! See PNA and OXR and RNG! Looks like some residual overhead in HTM yet to go...wonder if today the seller has cleared out. HTM could be in for a good catch-up when the dust settles.

Anyone know anything more definite about the ASX volumes over the last week (in HTM)?

craic
02-05-2006, 03:29 PM
HGD has been moving in the last couple of days up.9 of a cent which is a hefty percentage.

Jess9
10-05-2006, 11:54 AM
I've now taken a position in this one. So I don't mind saying I think this coy has serious multi-bagger possibilities.

We have had a recent change in Chair, and an indication of major new action to come. What the market now needs is an announcement of upgraded reserves and a clear timeline to production (possible rather soon if a fair short term toll arrangement has been/can be reached with Newmont?), i.e. walk the talk.

Also there maybe an IPO announcement shortly, for their AUS mining interests. A good time I think to realise possible hidden value on the ASX/NZX. This might also be a good souce of funds to pay CAPEX for a (100% owned) processing facility at Waihi (possible a medium term objective, if a suitable toll arrangement works out in the short term??).

Who else holds this one? Do you agree??

croesus
12-05-2006, 06:02 AM
When are these guys going to get their shovels out !

Jess9
12-05-2006, 07:12 AM
quote:Originally posted by croesus


When are these guys going to get their shovels out !


Very soon with gold at over $700 US an oz ; )

Panic E-Button
12-05-2006, 08:44 AM
1. Damn management in HGD is the answer to its share performance trough the years.
2. Luck of stable/ increasing earnings.
2. Shareholders are last to be looked after.

End of the story - and sorry for not lifting your spirit up.
Good luck to you.
You need it if you have an interest in HGD.

Jess9
12-05-2006, 09:26 AM
Not sure on that, it's pretty clear from a read of the annual's that their target was to build resources to enable sustained production. Therefore earning's growth is not a discussion point, yet.

Re management progress, in 2005 management set a target of identifying 200,000oz of GOLD - JORC compliant resource, and they achieved this target prior to that year-end (at 205,000oz). They are showing they can walk the talk.

I'm not saying this one is low risk, but has great potential, and management are making the right noises - supported by showing they can hit a set target.

Time will tell...

With gold going over USD700/oz, their JORC reserves are looking very attractive right now, and there is strong potential to significantly increase these proven resources. This provides a potentially lucrative bonus!

Not to mention a likely value increase in their AUS Cobolt company upon listing (maybe this will provide cash for likely mining capex if their 33% interest is sold down).

Also to note;

*as HGD/HTM (on ASX) are not yet producing they have not undersold their resource by hedging away profits...leaving them open to possible benefits from a sustained (gold) bull run.

*their capital on issue is only 131m or about 187m shares - fully diluted (warrants and oppies etc), meaning EPS etc could significantly lift the value on a per share basis, when they do sell gold.

croesus
12-05-2006, 01:52 PM
Good post Jesse I concur.......had'nt picked up on the Cobalt listing is that for sure? and do you have a time line for that.
Regards Croesus

Jess9
12-05-2006, 02:46 PM
Hi croesus, check out comments in the last quarterly, I'll post it below, maybe I read to much it it, but maybe not...

I also note it's valued at cost within the accounts at approx $1m. I would expect this to move up somewhat, to fair value.

Jess9
12-05-2006, 02:57 PM
HGD
28/04/2006
QUARTER

REL: 1629 HRS Heritage Gold NZ Limited

QUARTER: HGD: Fourth Quarter Activities Report

HIGHLIGHTS:
- New Strategic Direction
- Gold Projects Reviewed
- New Areas Targetted

STRATEGIC DIRECTION
During the quarter Heritage undertook a strategic review of the company's
operations and its medium term objectives.

Announcements to the stock exchanges will be made as the strategy is
implemented.

Initially, it involves establishing a specific management team to advance
evaluation of all of the company's gold projects in the Waihi gold district.

GOLD PROJECTS (New Zealand)
Heritage's gold properties are all within a 15km radius of New Zealand's
largest gold deposit at the Martha mine in Waihi. The total production from
Martha since its discovery is 7.3Moz gold 50.2Moz silver.

The three major projects held by Heritage are at Golden Valley (abutting the
Favona and other permits held by Newmont Waihi Operations), Waihi North
(adjoining the northern boundary of the Martha Open Pit mine) and Karangahake
(about 15km west of the Martha Mine and containing extensive historic
underground mine workings).

Heritage has 100% equity in the gold projects.

Karangahake
The project has a JORC-compliant resource base of 205,000oz gold and
800,000oz silver. A current review of the project involves consideration of
alternative development paths for the contiguous Rahu, Talisman, and Dominion
Knoll permits which cover the mineralised quartz vein zone for approximately
4km along strike.

The purpose of the review is to define the optimum path to the establishment
of a processing plant near the project.

During the quarter the following work was completed:
- Further channel and bulk sampling in the No. 8 level to extend evaluation
work.
- Further fieldwork was completed at Dominion Knoll and recent drill hole
results interpreted.
- Collection of baseline water chemistry data continued.
- A site visit with a mining contractor was followed by a review of operating
costs.
- The No. 8 level portal (entrance) was rebuilt and strengthened.
- Ventilation (fresh air flow) throughout the No. 8 level was improved by
closing off old drives and stopes to reduce air "leaking" into the old
workings.

Other Gold Projects
Further detailed work is being planned for the Waihi North and Golden Valley
permits to supplement the geological and geophysical database established to
date and expand geochemical knowledge of the areas.

The Waihi North property contains the northern part of the hydrothermal
alteration system that hosts the Martha mine, and also the Mataura
hydrothermal alteration system that lies between Martha and the Golden Cross
mine to the northwest. Golden Valley lies along the eastern margin of the
line of strike of Newmont Waihi's Favona underground deposit.

Northland Project (100%)
Northland Minerals Ltd ("NML"), a subsidiary of Heritage, has applied for two
prospecting permits in the Northland region of the North Island.

The region has had very little modern exploration but has significant
exploration potential, as evidenced by its favourable geology.

NML has identified high mineral potential for epithermal gold-silver and
porphyry copper deposits, as well as gold-rich volcanogenic massive sulphide
base metal deposits. The Hikurangi area is prospective for epithermal
gold-silver and porphyry copper deposits, similar to those found in the
Coromandel volcanic zone which hosts the 7.3Moz Martha gold deposit.

The Tangihua application is prospective for gold-rich volcanogenic massive
sulphide base metal deposits, signs of which have been noted by previous
explorers in the region, although no systematic exploration for major
deposits has been undertaken.

Heritage is planning a comprehensive prospecting programme including
geophysics, geological mapping, geochemical sampling, and computer-aided
deposit modelling, to delineate areas of mineralisation for subsequent
detailed evaluation.

[b]BROKEN HILL COBALT LIMITED (New South Wales) (3

croesus
13-05-2006, 10:08 AM
Thanks Jesse,....the proposed Cobalt Listing looks promising
cheers Croesus

Jess9
14-05-2006, 07:59 PM
Hi croesus, have you been following HGD for awhile? I was looking at some 2004 public releases and noted the following that maybe of particular interest now (in light with gold being alot higher than $380USD)...

------------------------------------------
29 July 2004
Market Information Services Section
New Zealand Stock Exchange
Level 9
ASB Bank Tower
2 Hunter Street
WELLINGTON
BY EMAIL PAGES: 1
FOR PUBLIC RELEASE

Tennent, Isokangas Pty Ltd (“TIP”), consulting mining engineers, has reported to Heritage on a conceptual mining study at the Talisman mine at Karangahake near Waihi, New Zealand.

The conceptual study was based on mining 150,000 tonnes of ore annually from underground operations to produce 50,000 oz of gold equivalent (gold+silver) per year, initially on a toll treatment basis. The study found “no fatal flaws” in the mining concept, subject to Heritage identifying the gold (+silver) resource needed to support such an operation.

The initial capital cost indicated by TIP is approximately NZ$23.5M.

Heritage would expect to fund the majority of this through an appropriate loan and/or by contracting the underground mining development and operations.

The indicative annual gross margin is approximately NZ$11.5 – 12.0M at a gold price of US$380/oz, based on the TIP study.
--------------------------------------------------

I might crack the above through a spreadsheet to rough model the impact (of current gold price) on above projected earnings and possible share price, I'll post if worthy of discussion ; )

Jess9
14-05-2006, 08:56 PM
earnings per share on current issued capital (132m) $0.163 p.a. therefore at a PE ratio of 6, share price = $0.98 (i.e. 98c!)
earnings per share (fully diluted - 184m) $0.117 p.a. therefore at a PE ratio of 6 share price = $0.70 (70c)
earnings per share (diluted + allowance for est additional capital raising - 204m) $0.105 p.a. therefore at a PE ratio of 6 share price = $0.63 (63c)

Jess9
14-05-2006, 09:07 PM
Significant Assumptions for above estimates:

CAPEX
Total mining assets to date, to be amortised over the life of mine (in NZD) $8,000,000 (see est depn below)
Est CAPEX (NZD) for mine based on 2004 TIP study cost $23,500,000
Inlation adjustment (from 2004 to say 2007 costs) 20% $4,700,000
EST CAPEX for mine in 2007 dollars $28,200,000

GROSS PROFIT
Assume USD$ $0.620 per NZD
Assume gold price at $700 USD per oz
TIP budget was estimated with gold at $380 USD per oz
therefore additional gold revenue from price change is $320 USD per oz
Gold targeted to be produced per annuam 50,000 oz
additional projected profit purely from gold price change $516 NZD per oz
total additional projected profit (NZD) based on prodn volume above $25,806,452
Forecast cash profit from TIP study (NZD) $12,000,000
adjust/reduce for est increase in costs due to inflation (NZD) -$2,400,000
adjusted 2004 cash profit to 2008 dollars $9,600,000

Total estimated cash profit $35,406,452
Reduce the (above) cash profit for estimated non-cash expense
Depreciation on new mine CAPEX (as above) at 10% -$2,350,000
Amortisation of exisiting mining expense (per 2005 Balance sheet) at 10% -$800,000
Total estimated non-cash expenses -$3,150,000

NPBT $32,256,452

Less tax (33% etc) -$10,752,151

Estmated NPAT (p.a. etc) $21,504,301

Capital Structure Assumption
Issued Capital 131,599,399
Fully Diluted Capital 183,912,080
Possible Capital Raising Issues?? 20,000,000
Fully Diluted (including possible cap raising issue - as direct above) 203,912,080

Jess9
14-05-2006, 09:15 PM
therefore, if (and a risky if here...) HGD can dig the yellow stuff out and sell it as assumed above, this one could be a 10 + bagger based purely on earnings, at 50,000oz pa : )

croesus
15-05-2006, 05:28 AM
Hi Jess9 yes had shares, and HGDCAs for some years.......a bottom drawer stock, every (almost) dog has its day... hopefully this one will bark soon.
Regards Croesus
P.S Thanks for the research

Jess9
15-05-2006, 07:08 AM
Hi croesus, not sure if interest expense was included in TIP's study above, assumed it was. If not the impact affects the above model thus; 89c, 64c and 58c per share.

I also reckon say devide these prices by 3 to get a rough estimate to adjust this production model back to a "potential case" to reflect where HGD is today (i.e. this "discount" would unwind if/as the coy evidences it will achieve forecast prodn rates, at price specified etc), therefore HGD right now could reasonable be worth 20c/share, if small cap goldies become flavour of the month with investors and start to sparkle in the sun!

We wait and see.

DISC: finished taking my position over the last 4 weeks.

craic
15-05-2006, 08:32 AM
The original statement that caused me to invest in this company two years ago was published in the Dominion and contained the information that the company expected to realise significant returns from processing in "late 2006" I remains to be seen but the amounts of gold they expect to recover based on core samples would push the share price well above the 20 cps suggested if they are realised.

Jess9
15-05-2006, 06:46 PM
Hi craic, guess we should await the next quarterly/annual, then if it is not clear how this is proceeding, put this question to the Board.

Jess9
16-05-2006, 11:47 AM
This one reminds me of a bit of NZO back at 25c a few years ago.

The trick will be are they (HGD) ready to take that leap forward into production or will time slip by an opportuntiy (good gold price) be lost...phase 3 resource upgrade and BFS news should make interesting reading and give us some detail around progress and likely developement - hopefully soon, or at least in the next quarterly.

With a balance date of 31 March, the Annual and Director's report will also be out in June, I guess.

Jess9
20-05-2006, 01:02 PM
I see cobolt price is about $16/pound? Looking back, Broken Hill was proceeding nicely at $10. Will be interesting to see details on the new value placed on HGD's equity interest, with the price increase and also the larger permit area. Anyone know more about this associate?

trackers
26-05-2006, 06:39 AM
HTM.asx
http://img125.imageshack.us/img125/5925/6873604lb.png
HGD.nzx
http://img133.imageshack.us/img133/3155/6903608io.png

trackers
26-05-2006, 06:45 AM
Was thinking of picking up some HGD until I saw the depth:

Buy Market Depth Sell

Buy Quantity Prices Prices Sell Quantity
42,000 5 6.3 100,000

0 0 6.4 30,000

0 0 6.5 18,000

0 0 6.6 65,000

0 0 6.8 61,865

0 0 7.1 20,000

0 0 8.5 10,000


42,000 304,865

Jess9
26-05-2006, 07:49 AM
Agree Trackers. Risky - especially with bird flu scare last night...who knows if that is to blow up over the weekend.

That said, no further news of significane on BF this morning, rather east Timor action is now current and more newsworthy...

Still reckon however that longer term this one has great potential. I guess the correction in AUS mining stocks has hit confidence and affected HGD - as noted in your post above (of note here of co**** is that HGD did'nt participate in the rally to start with).

To buy without further information, either needs big balls, or maybe just a head full of rocks, hard to tell, untill the market takes HGD either to 10c or down to 2...to settle that question ; )

trackers
27-05-2006, 03:20 PM
Yep I agree...sitting on the fence, undecided at yet whether to have a dip. the price is definitely right imo, but the upside from here, who knows...

Jess9
27-05-2006, 06:25 PM
quote:Originally posted by croesus


Can anyone confirm the new final figure and date (actually I think the date is unchanged)
for taking up HGDCA warrants... I suspect the money to pay dropped after the recent cash issue,
Thanks in advance.


Hi croesus, better late than never...6.5c NZ just before the 30 June 2007, I understand - per coy secretary confirmation.

Do you still have "both trucks" (full of warrants) or have you sold a few since Jan? What are your thoughts on this coy now, heading to june 2007?

croesus
29-05-2006, 09:20 AM
Still a holder.

Thoughts. What they need to do is to get the bobcat out and mine some gold, seems to be a lot of flaffing around. Then the S/P will rocket, they are prescient enough to appreciate the HGDCA s, will not get exercised until the S/P ratchets up.

The Cobalt is a wild card. hopefully not a Joker.

Regards Croesus

Jess9
29-05-2006, 12:10 PM
quote:Originally posted by croesus


Still a holder.

Thoughts. What they need to do is to get the bobcat out and mine some gold, seems to be a lot of flaffing around. Then the S/P will rocket, they are prescient enough to appreciate the HGDCA s, will not get exercised until the S/P ratchets up.

The Cobalt is a wild card. hopefully not a Joker.

Regards Croesus



Thanks Croesus, regarding the excerise date of the Warrants in 07, and considering the likely time slippage between planning and action/results (and this is not aimed at HGD specifically but is a general risk issue to whole mining sector at present). I have requested the board consider (if it is at all possible) the possibility of whether or not they can extend the warrants expiry date (due process accepted - this maybe ruled out up front legally, not sure) So while unlikely, I have asked anyway as I see the "the extension issue" as a valid question to at least discuss. Valid, as as management plans have now changed since the original deadline was set (several years ago etc) and an extension may well allow the coy to better time the call/use of this capital raising, better aligning to new plans etc. Extension would also allow for the FPO price to get to a healthy level above the warrant strike etc (being presently well below strike). From experience, FPO's head down towards strike price, as time limit approaches - so a significant "buffer" is needed to ensure full participation.

Kind regards,

J9

Jess9
29-05-2006, 07:14 PM
Saw this yesterday on Kitco..

http://www.sundaytimes.news.com.au/common/story_page/0,7034,19279238%255E951,00.html

nice if you have all the ground work laid and are almost ready to dig, just hope Heritage is still within this category, and not too near the back!

Fodder
02-06-2006, 01:21 PM
FYI:

Reported on the NZ Herald website:

"Heritage to step up search for gold"

4.40am Friday June 2, 2006


Dual-listed junior gold explorer Heritage Gold is preparing to step up its North Island exploration programme.

Although it reported a $2.6 million loss for the year to March, managing director Peter Atkinson said it was a result of exploration programmes in the Waihi area.

Most of the work centred on the Talisman mine but test drilling was also carried out in some other areas.

He expects to be able to make an announcement to the market in the next few weeks.

Atkinson also heads up private company Prophecy Mining, which has gold permits adjacent to Oceana Gold's Macraes mine in east Otago, where exploration is continuing.

No hint of the shovels coming out yet

Jess9
03-06-2006, 08:36 AM
Thanks for that Fodder, you're right, re shovels, but I think maybe that’s a good sign right now, as I would assume if production is likely/planned this year, then this (being absolutely huge) would need to be announced to the market in the proper way. Looking over the last eight quarterly’s, I think a prodn decision has to be immanent (i.e.within 6 months).

Don't get me wrong here, I guess this may come over as a ramp. Therefore I repeat to all, I absolutely accept the high risk with this one, but that said, I haven’t had gut feel as good as what Heritage has given me recently, since I bought NOGOC, back when it was 8.5c a few years back! That was a wild ride!!

Therefore, I've "backed the truck up" over the last two weeks, firmly putting 'money to mouth' etc (and hopefull not in mouth ;), as if (and as with NOGOC back then - this is a big if) all goes relatively well (and they run faster than NOG time ; ), this one is likely and easily to be in multi bagger territory!

Krustytheclown
03-06-2006, 09:43 AM
Are the wild and wooley Green lobby attempting to scuttle the good works of Heritage's Coromandle ambitions?

Not a holder yet -but good on those hard working miners!

G.

Jess9
03-06-2006, 07:03 PM
Hi Gregoroius!

The greenies already scuttled the coromandal permit a few years ago, I believe - HGD even sued, and even more surprisingly won a $220k settlement, paidout recently (albeit allot more $ had been expended into exploring). I think any new "Northern" work won't be drilling, rather thermal/computer analysis?

Re the above article, I think the drilling will mainly relate to the Waihi permits, in particular around Karangahake, and maybe the permit bordering Nemonts Martha mine (pit). A target I understand from Phase 4 was to expand both resource quantity and quality (from the current 205,000 oz of gold already announced last year) to (from memory) at least double this quantity - to reasonably support a new 20-year mine operation.


HGD are canny (I like their style to date), they have acquired allot of acreage around existing and historic world class mine sites - therefore discoveries can leverage of existing skills/labour and infrastructure!

Now I just need a few of my wild guesses to come true!

J9

croesus
03-06-2006, 08:06 PM
Hi Jess 9, hopefully your expectations will be wellfounded, like you I am a glass half full optimistic cove....... can't see any downside in the S/P in the near future and a good chance of a healthy rise......may buy a few more nxt week.
Regards Croesus.

Jess9
03-06-2006, 08:29 PM
Hi Croesus,

Good to hear from you.

moving away from the company actions/guesses (as noted above), of interest of late is the share price pull back. I wonder if the AUS sellers/s have now fully exited?? I guess I bought a few of those, some down to 4.1c AUS...time will tell just who was getting the bargain[:I] The funny thing is at this stage, that is both of us!

Depth on Friday is "gappy" (NZ 5.1 to 6.2? ASX looking about the same)unless there are floating seller’s entry on market needs to go over 6c...or if you can live with "option risk", the warrants may provide a good entry, but you probably have enough of these already?? Sellers a 2c (buyers at 1) 1.25m on offer, 500k to buy (last sale 2c). Exercise at 6.5c NZ (buyers choice to make call... therefore same as an option etc) by 27.6.07.


PS looking forward to a good read of the annual report/chair's report at end of this month - think its out around 27th?

croesus
03-06-2006, 09:00 PM
I am the buyer at 1c.
cheers Croesus

Krustytheclown
03-06-2006, 09:09 PM
I find it really sad for NZ that we got Billions of dollars tied up in the Coromandel in the likes of Silver, Gold and various other precious metals.
This would provide highly paid jobs for the locals and and tax money that should go to Hip ops (not Hips Hops you Labour lot;)!) and other worthy public spending.

Go Heritage!!!!!!!!!! I like its doggedness.....I might even buy some shares again in the Co someday.

G.

Jess9
04-06-2006, 07:18 AM
quote:Originally posted by croesus


I am the buyer at 1c.
cheers Croesus


Hi Croesus, I bought a few at 2c, "just to be in", probaly pd to much...may come sit next to you (on that 1c rock) next week - to average down if the sellers need to get out. My only concern is averaging down to zero?[}:)]

Jess9
13-06-2006, 03:19 PM
...well buyers at zero now, but no liquidity anyway, nice ; )

Good we have 12 months left eh! Hope HGD lives up to my expectations now, and the above is not a complete write-off (or else wf won't be happy : (

Croesus, surely you must need to upgrade the size of your truck now : )

Jess9
01-07-2006, 10:40 AM
Hi Croesus, did you and that truck make the top 20?

The Annual raps the year well I think. It also focuses attention on some interesting events coming soon...your thoughts?

Hope our Board remembers, and looks after warrant holders this coming year...

J9

Jess9
01-07-2006, 06:48 PM
Gold leaped USD $27.30/oz today! Closing at USD $613.40 per oz spot. Strongly breaking through the US $600 barrier should get the big goldies roaring again on Monday. Wonder if this will trickle down?

croesus
05-07-2006, 07:54 PM
Hi Jess, yep me and the truck there, pls quite a few more purchased past the print date, still bullish on this one for all the reasons discussed, if the price is right will get some more warrants, if not will get some more WID.
regards Croesus

trackers
07-07-2006, 12:26 AM
only need about $22k to make the top 20 warrant holders ;)

Jess9
07-07-2006, 01:52 PM
http://www.kitco.com/ind/GoldReport/jul062006.html

Read the last two para's of the above. Maybe 22k now, but maybe 200k in six months : )

J9

trackers
07-07-2006, 10:31 PM
Yeah I'm looking at pulling a AUM.asx styled coup with their warrants :P

Jess9
07-07-2006, 11:21 PM
Oh that would be nice - the problem would then only be not selling too soon, as the paper thousands become millions! A problem I may dream a little on, tonight ; )

Jess9
08-07-2006, 05:10 PM
Croesus, Trackers. Have either of you done any analysis/work on Broken Hill Cobalt's value per HGD share? If this IPO goes ahead soon (as noted in the annual), this could be a nice boost to the share price.

At cost (currently equity accounted for in the annual), this investment is just under 0.8 of a cent per share. The cost however was several years ago when the prospect was initially picked up, and does not recognise the years of successful exploration work, the granting of mining licenses I assume production feasibility studies and market investigation, the big increase in cobalt prices and the additional exploration permits gained. It also has been reduced by each years portion of accumulated operating losses (only as not producing etc)...any thoughts what this could be valued at on IPO?

If Broken Hill came in at 3-4c per share for HGD (with 1/3 equity in the project currently) then the new financial year might kick of with a boom!

Timing would be about right (for an IPO soon)for nice feelings of shareholder wealth creation at the AGM...or am I simply being over optimistic on Broken Hill?

croesus
08-07-2006, 07:39 PM
Hi Jesse
My view is 3/4c a share for the cobalt, how they promote the IPO will be interesting...
HGD needs a bit of "go forward" and the S/P will shine... will buy more heads (to balance the warrants on Tue )
cheers Croesus
ps currently very bullish on WID.........check out thr AGM in 3 wks

Jess9
09-07-2006, 08:51 PM
Looked over share depth (Sunday), there is a nice sized parcel of 280k at 5.5c but after that there is not much on offer (and less on the ASX).

Quarterly should be out soon, hope some more IPO details and or resource upgrade/phase 3 progress is announced prior to this. Any such announcement could provide "the shine" you mention - for the start of a re-rating.

The shine would become almost blinding if HGD can produce by year-end, then as they have no forward hedging (at low gold prices) and as the NZD is picked to fall against the USD, maybe revenue in NZD's will be very favourable!

I still think HGD has been overlooked, maybe as it's primery listing is on the NZX, or maybe due to low liquidity (in part probably this is due to current price)?? Other ASX listed goldies have doubled since Xmas (due to Gold etc going through $600 US). Based on that HGD should be North of 15c : )

croesus
10-07-2006, 07:06 AM
Can't argue with any of your last post, we just have to wait for good news, or Mr Market to wake up, low liquidity does not help.
Not sure of the current if any hedging status....... a update from the co would be helpfull.....also a date for getting the spades out of the implement shed.
regards Croesus

Jess9
10-07-2006, 04:47 PM
No hedging as at 31 March 2006 (or policy to hedge yet) - per Annual report, and double checked this was correct with Coy Secretary.

trackers
11-07-2006, 12:54 PM
Well, see you guys on the other side - I'm in. (brought a small parcel this morning)

Jess9
11-07-2006, 06:36 PM
quote:Originally posted by trackers

Well, see you guys on the other side - I'm in. (brought a small parcel this morning)


Nice entry price.

Jess9
11-07-2006, 08:45 PM
Consider the following;

1 Today I saw that Climax Mining Ltd has merged with Oceana Gold Ltd...one of the several benefits to shareholders for the enlargened (mainly NZ operation) Oceana is, the "ability to pursue further growth opportunities throughout Australasia."

2 Remember Newmont, with its Martha mine (and more importantly its processing facility) border two of Heritage's high potential licensed prospecting areas. These being the Waihi North and Golden Valley permits - two major gold projects, per the 2006 Annual.

Note: HGD website pegs Waihi North and Golden Valley (and Karangahake) as permits containing multi million oz gold potential (pls also be aware they also still underscore the word potential at the moment).

The 2006 annual further updates readers that within these two permits it has identified (for further drilling I think in late 2006?) several "major structures and geophysical anomalies" - potential for a new Favona or Martha??

3 Factor in the Karangahake permit (15km North of Newmont also), with its Talisman mine (currently including 205,000 oz of gold resource (announced in 2005), and with Talisman's likely resource upgrade to follow this year, and more importantly its advanced state down the mining/RMA permitting road...

4 And gold again is over $620 USD per oz, with real potential to go to $1,000 within next few years

Considering then, 1-4 above, think on these:

1) What is HGD's current capitalisation?

2) How likely is a merger or takeover offer this year (by Newmont or Oceana)?

3) If 2 occurred, what would a fair price be?

Any thoughts? Or, is this highly unlikely – if so why??

Jess9
12-07-2006, 07:20 AM
Gold again shows its safe haven allure in times of uncertainty...up $20/oz overnight after Bombay terrorist attack (now at USD$641.90/oz).

trackers
12-07-2006, 09:25 AM
Good wee rise today, up 14.6% so far

Jess9
12-07-2006, 10:22 AM
Yip. Still some sellers sitting there however. Hopefully there will be an annoucement or two soon re progress, or about the IPO (or public fund raising), or on goals/timeframe for the implementation of the new strategic plan (to advance HGD's advanced mining interests etc).

I think the market next needs to get a good feel of whether or not HGD has traction on progressing its projects soon, and how etc.

Go HGD!

shasta
12-07-2006, 05:39 PM
Am keeping an eye on this stock, due to your posts Jess.

Still seems to be lagging behind other gold stocks although its potential is huge.

Seems to have the NZO effect about it, looking good but yet to deliver.

Disc: Hold NZO, nil HGD

Jess9
12-07-2006, 06:33 PM
No guarantees here Shasta, but I'm in on this one, and thinking it has the right ingredients to be my next NOGOC type investment, being hopefully a multi-bagger within 8-18 months.

This of course still needs a measure of luck, along with some plain old hard work from Peter A. and the Board to ensure HGD remains focused intently on transforming from explorer to producer (with minimal shareholder dilution) and then proves this to all by generating strong operational cashflow.

Remember NOGOC at 8c was quite a risk/punt, but also quite a ride when it shot up!

shasta
13-07-2006, 12:15 PM
I wonder what terms HGD shareholders will receive from this article,
www.nzherald.co.nz/section/story.cfm?c_id=3&objectid=10390995

Might be worth a small play to get access to the new company & a short term spike!

Jess9
13-07-2006, 01:02 PM
Thanks Shasta, very interesting.

Peter A. hinted at this in the Annual. This could be great for all equity holders (including option and warrant holders) - especially if HGD retains a significant and controling stake long term (in this new coy). This may be a great way to introduce new funds while broadening the shareholder base, and also raising HGD's profile to general investors...who may then see and realise the parent is likely way too cheap : )

I think that HGD may need $30-40m to develope Talisman to production.

Hopefully a good chunk of this (maybe 50%?)however can be debt funded (to reduce shareholder dilution). I see from a look over the Board's background that Geoffrey Hill is also a Merchant Banker...this may be beneficial ; )

Chalice
13-07-2006, 04:33 PM
Hi, I got a few yeaterday - it will be very interesting to see what the implications of the IPO are on share price will be - very little reaction on the ASX to the Herald article - one additional bid, 100000 - up .002 on previous but atleast someone is paying attention over there! I got into the original NZO options at 4 cents and have enjoyed the ride all thr way through (even though been a bit protracted at times) - hoping for a repeat!

underground
13-07-2006, 07:16 PM
im keen on this stock and have recently bought into it. from what ive read this company seem to be making progress VERY slowly.i recall they were intending to get the good stuff out of the ground late 2006..im not so certain this may happen but i do see the vast potential, especially with the 33% interest in Broken Hill. hopefully with the media releases this stock will pick up. but slow and steady wins the race =)

Jess9
13-07-2006, 08:16 PM
Hi Chalice and Underground, welcome to Sharetrader, and to HGD!

Another thought (probably wrong, however you never know) about the article Shasta has linked above...if a spin-off coy does happen, this may indicate HGD expects a decent resource upgrade at Talisman (part of the current phase 3 work) as the Annual mentions that work to provide a resource upgrade is an important objective to establish a separate (i.e. HGD would not need to rely on a toll treatment contract - from Newmont) treatment plant (TP). I'd assume a separate TP would be necessary for a viable spin-off for a new Gold producing coy etc.

The last resource upgrade (phase 2 in 2005) almost doubled gold reserves. Knock on wood - if HGD could do this again soon, and get near or over 400,000oz, well, a solid resource upgrade would certainly provide the required excitment for a succesful IPO and would be excellent filling for a tasty IPO sandwich! - especially with gold and goldie's coming back in flavour.

Discl:

Holding;

NZO
HGD
HGDCA

Jess9
14-07-2006, 06:05 AM
Gold up again - on middle east tension (flaring of violence between Israel and Lebanon), now USD $656.50/oz. Oil heading North again too (apparantly there is a complex link between these two's movements).

Gold, more than just a commodity.

croesus
14-07-2006, 07:07 AM
If the report in the Herald is correct, and if it is not HGD should have issued a disclaimer by now......whats in it for current Share and Warrant holders ?

One would expect at least a rights and or free options package for current Share Holders.

On a Global front..... the Middle East is dodgy, North Korea is stirring the pot, and Iran is giving the world the finger...... draw your own conclusions on the effect on Oil and Gold prices.
Disc own several ute loads of HGD warrants, plus a container load of WID
regards Croesus

ps good posts Jess.

trackers
14-07-2006, 03:35 PM
Well I was in and out with a quick 10% cashed gain on most of the stock I brought this week...But I've refrained from selling the last of it as the depth has really started to interest me I must admit. Might sell the rest at $1 ;)

Jess9
15-07-2006, 09:08 AM
Nice one Trackers, now lets see if there are several more 10% rises, i.e. HGD starts into a steady long term uptrend (to catch-up and join gold's and the mining sector's established up-trend).

The upcoming spin-off of the Waihi gold prospects and the Talisman mine is very interesting. I look forward to understanding the detail, when released within the next few weeks. I wonder if Newmont/Oceania may want a chunk/all of this new (waihi focused company) after listing, for the reasons noted above! Potential is there for some very exciting stuff.

The spinoff/distribution may provide a jump start to HGD's langishing price!

AGM gets closer - happy equity (share/warrant/option) holders wanted ; )

Jess9
16-07-2006, 12:28 AM
Gold up US$14/oz, now $666.30/oz as at 16.7.06

Bodes well for an IPO and/or spinoff : )

Jess9
16-07-2006, 09:15 PM
Croesus, why WID over ASN directly?

croesus
16-07-2006, 10:02 PM
Several Reasons,
WID have other investments
I know C.C and value his judgement.
With the no of shares I hold even a 2c increase will have a healthy increase on my N.A.V
Their aftermatch function is a treat.

cheers Croesus

Jess9
17-07-2006, 12:42 PM
Is C.C. still bullish then on ASN?

croesus
17-07-2006, 06:55 PM
Will have a chat at the AGM,
Re HGD wonder when this spin off will be announced...anyone out there privy to that.
Croesus

Jess9
17-07-2006, 08:37 PM
Thanks. Watching ASN, may get a few for fun, shortly, will watch/readup a little longer through.

Back to HGD. Gold - now US$673.50/oz!

Not sure about Waihi spinoff - does this mean; an in specie distribution? Or rights issue/capital raising? If the latter, why pay for what we own currently. I reckon any change would need 75% shareholder approval at the AGM - therefore expect detail soon. I understand HGD management have been working hard on spinoff detail for months already (so should be well thought through - incl warrant/option impact).

Re AGM. I'd vote for a (free) in specie distribution (incl part allocation to warrant holders for portion of partly paid shares), plus 1/5 renouncable rights to an IPO for more equity at market price. New coy to have independent Board and new team of focused management/staff to take Waihi prospects into production. HGD to retain a 33% (or min 10% blocking) stake.

Crappy news item in Sunday Star times on Penny Dreadfuls, re HGD. Outdated info...straight out of the "2005 Investment year book" - old stuff, with no mention of JORC resource, huge gold price increases over the last few years.

Lastly - HGD chart is looking brighter : ) To early yet to tell, but could be the turnaround point.

trackers
17-07-2006, 09:07 PM
If HGD can 'sell' a tiny part of their business to new investors, to fund further necessary exploration expenditures, then I'm cool with that - It's that or face another dilution or two before they start digging (imo)

Jess9
18-07-2006, 08:19 PM
Gold pulled back a little today from it recent run up, now back to US$647.70.

Good buying volume however (for HGD on ASX today and depth building back again slowly, sellers (that show) are also lite on upside depth.

On another point, the quality, manner and form of the previously mentioned spinoff will also give us all some insight into the quality/thinking of the current HGD Board. Fingers xed for a pleasant surprise eh?

Jess9
19-07-2006, 06:00 PM
Increasing trade volume today (compared with daily average for several months).

Fodder
20-07-2006, 05:33 PM
Good day for HGD...Up 11.3%... sellers clearing out...perhaps good news on the horizon???

Jess9
20-07-2006, 06:06 PM
Rising price on rising volume, classic signal : ) Strong break above 30 day moving average too, this must also be quite... positive. Will it have another good jump up tomorrow, or a wee pull back down first?

My short term (<12m) high is a target (and quite possibly over optimistic) of 20c/share...go on market just prove me right for a change ; )

The gold bull was all go on the ASX as well today, gold itself seems to be consolidating nicely above 600, I assume this is why.

jonny5
20-07-2006, 06:19 PM
you guys bailing out or still hungry for more?

i dumped a bit of dough on this early in the week as i saw no negatives. Tempted to jump out now and call it a win

thoughts?

I've noticed we don't have much of an audience in this thread

Jess9
20-07-2006, 06:32 PM
You could wait until the spin off detail, then make the call to stay or go.

Jess9
20-07-2006, 06:35 PM
Maybe when these guys (HGD) do 'something solid', there will be more to talk about, till then it is a bit quite...however on the bright side I'm well on my way to earning a "new star" :)

jonny5
20-07-2006, 06:44 PM
any ideas on time frame?

I gather you're holding on?

trackers
20-07-2006, 07:01 PM
quote:Originally posted by jonny5

any ideas on time frame?

I gather you're holding on?




I got tripped out today so I'm gone - I'll be accumulating again next week -prob wont get lucky again with a 4.8c buy in though :(

Snow Leopard
20-07-2006, 07:06 PM
quote:Originally posted by Jess9

...however on the bright side I'm well on my way to earning a "new star" :)


quote:Orginally posted by jonny5

any ideas on time frame?

I gather you're holding on?

At the current rate of posting 28th Feb 2008*

[*Joined 6 jun 2004, currently 284 posts]

jonny5
20-07-2006, 07:07 PM
tripped out?

Snow Leopard
20-07-2006, 07:10 PM
quote:Originally posted by trackers

I got tripped out today so I'm gone - I'll be accumulating again next week -prob wont get lucky again with a 4.8c buy in though :(

It only went up today. How did you get tripped out?

trackers
20-07-2006, 07:20 PM
quote:Originally posted by Paper Tiger


quote:Originally posted by trackers

I got tripped out today so I'm gone - I'll be accumulating again next week -prob wont get lucky again with a 4.8c buy in though :(

It only went up today. How did you get tripped out?


Yeah...tripped out with a stop win lol - I'm pretty gutless when it comes to riding my wins, I normally set a sell order in at roughly 10% higher than buy price when I buy a share (generally on the theory that I might randomly hit it at some intraday point when I'm not watching) [}:)]

jonny5
20-07-2006, 07:31 PM
ya think I'll set a stop at 5% below current tomorrow and let it ride for a few weeks

see where the wind blows me.

Jess9
20-07-2006, 08:07 PM
Jonny5 while your new to this site, how new to investing are you?

If you care to, take a read of the following (link) posted by Phaedrus...


Posted - 10/07/2006 : 8:26:41 PM
----------------------------------------------------------------------

I stumbled across this set of really good trading rules. (ie ones that I agree with!)

http://spahiu.wordpress.com/

Page through about 4 pages of junk at the start.

--------------------------------------------------------------------

Also, lots of interesting stuff within "All forums" "Investor Strategy".

jonny5
20-07-2006, 08:24 PM
Will try and give it a read before beddy-byes tonight.


Relatively new to investing. Have a head as big as a balloon though. Look for my bankruptcy announcement :)

I'm definitely a TA guy though.

Oh and what can only be described as "gut"

shasta
20-07-2006, 08:35 PM
Since that NZ herald article came out the share price has had a nice wee spike, so im interested in the details of the spin off coy & what HGD shareholders will get, incl options etc.

Disc: Nil HGD, but awaiting the pending announcement

jonny5
20-07-2006, 08:45 PM
Rule #6 really has me thinking, not sure that I agree with it wholeheartedly. I mean there comes a time to sell, and a time to buy. What this guy is saying is to bail out of dwindling stocks and buy into those on the rise.

Definitely investment, not trading

trackers
21-07-2006, 06:38 AM
quote:Originally posted by jonny5

Rule #6 really has me thinking, not sure that I agree with it wholeheartedly. I mean there comes a time to sell, and a time to buy. What this guy is saying is to bail out of dwindling stocks and buy into those on the rise.

Definitely investment, not trading



Ssshh! trading is a dirty word around here ;)

Fodder
21-07-2006, 12:47 PM
Just shot up to 6.5 cents.. 10.2% gain.. not bad..down 11.1% on the ASX though at 4cents.

trackers
21-07-2006, 01:00 PM
quote:Originally posted by jonny5

you guys bailing out or still hungry for more?

i dumped a bit of dough on this early in the week as i saw no negatives. Tempted to jump out now and call it a win

thoughts?

I've noticed we don't have much of an audience in this thread


well lets hope you didnt

Jess9
21-07-2006, 01:37 PM
Day off today - so have been keeping a weather eye open, quite exciting.

Market price is jumpy today. Depth shows buyers/sellers not too sure if this is a false start, or the real thing!

IMO HGD was long overdue for a good catch-up anyway, just to get back in line with other goldies healthy rises over the last six months, HGD's likely IPO's may further spice things up - but who know's, until the details come out anyway.

Watching on with interest.

jonny5
21-07-2006, 01:42 PM
Hesitant to jump out as I have no "real" money in on this. If I'd put the house fund in I'd be out and jumping for joy.

Tempted to stick around and watch it plummet. up 2% followed by 11% 2 days in a row can't really complain.

What you guys "reckon", to use the kiwi slang!

Jess9
21-07-2006, 03:29 PM
Picking immediate term (e.g. daily) is simply betting. That accepted, the market in general today is down, so HGD has done remarkably well.

Sellers emerging now at 7c. Buy depth really still not changed (low 5c), therefore IMO odds are more for a pull back, or a standoff for the remainder of the day/Monday.

But who cares, my time frame on this is (at this stage) 9 months +

I also know there will be many more ups and downs in this one, before my time limit. And in my view there will be more, and higher ups than downs.

jonny5
22-07-2006, 11:08 AM
Hrm, nothing more to it than betting you think? =P

Think I'm out come monday. Hope for another low to come back in, probably a bit stronger

Jess you're still holding? what did you buy in @?

Jess9
22-07-2006, 11:56 AM
Betting = jumping in or out without really knowing why, and hoping to fortune!

My (betting) comment was only in regard to Friday's (daily) movement question. Hence the link/comment to investment strategies section above also.

Investing (to me) is about identifying a fundamentally (significantly) undervalued coy, with an element, or elements of upcoming (positive) change, then getting in when the price trend either is either stable (i.e. not in a down trend), or has begun to rise (start of an uptrend). Also, the coy must have low to med shares on issue (better rise when it happens per share). Then if “all” lines up, sitting tight (or better yet accumulating if it’s a good run) and letting such a winner run (i.e. get maximum exposure to the bull trend you have identified – almost nothing worse than bailing on a multibagger, at 10 or 20% etc and watching it for the next 6 months double and triple and double again etc).

Or, alternatively if wrong, accepting this and cutting the loser (based on a set time limit etc)).

Entry price? My average is low 5's, also hold a few warrants (better leverage, but riskier, as nil/low liquidity). I'm still accumulating, here and there in FPO’s, as the story is still all-good at present, in my view.

Finally, technical (chart) also looks good on Friday's close. I don’t know heaps about this side of things, but it did have a nice clean break over the 30 day MA (strong buy signal I understand). But...will it get through recent past highs (around 7c – this would be hugely significant, me thinks) or stumble back to 5c...were I may bid on a few more ; )

Jess9
22-07-2006, 08:34 PM
Croesus, any educated guesses about the Waihi spinoff?

Jess9
22-07-2006, 10:11 PM
Looking at the paper tonight, NZX wrap-up etc, noted total volume (HGD) this week was 1.5m - from memory, this is several times greater than a usual weekly volume.

trackers
23-07-2006, 06:56 AM
Well I must say I find that a little interesting...Anyone not engaged in long term investing using FA is a gambler? ouch.

I'm in my third year of over 100% returns p.a. I put a lot of work into identifying where I think the share price is, compared to where I think it should be, and quite often arbitraging the difference. Whilst I do sometimes hold stocks for the long haul, I do keep my eye out for opportunities to arbitrage on intra-day pricing. I would only invest in a company short-term if it met certain criteria in the first place. Take HGD, I was looking at an entry for a long time, and eventually it hit a intra-day price that I knew that (in the absence of bad news) was highly likely to make upside without the need for any positive information.

Calling anyone that doesn't invest like you do a gambler seems a bit rough there Jess

Jess9
23-07-2006, 08:24 AM
Trackers, I like your style.

My "gambler" comment seems to have been misconstrued, though. Each to there own in strategy, as one size never fits all.

I understood 'the question' to be; 'do I sit or sell on Friday' (this I assume triggered by the recent surging price - as not much else was given or inferable), and with discussion asked for. I gave a reasoned response, trying to encourage a wider view, than that implied. Full stop.

Maybe I missed the J's point? If so I apologise.

I still think betting on a fall after a rise is, well betting. It may pull back sure, but I have (and I assume you would have too) also seen such shares carry right on up again for another surge, before taking any breather.

steve fleming
23-07-2006, 11:42 AM
Hi Jess9,

this looks kind of interesting, esp at current market cap...very strong board, and I was pleasently surprised to see Geoff Hill, who is a very well regarded and connected Sydney investment banker as an independent...

I guess the major concern is the current JORC resources of 200K oz only supports a 4 year mine life....which may not be worth the capex...i am guessing this mine life (or lack thereof) would be a major factor in the conclusion of the Feasibility study to mine...do you know what stage the company is at in respect of the F/S?? are they waiting to firm up additional resources before proceeding with a F/S? if drilling is still continuing and there has been no F/S to date (is this correct??) then production must still be at least 12-18months away at a minimum...

at this stage, given lack of resources, still very much an explorer, though they seem to have plenty of projects on the go, as well as the corporate action, gives potential for plenty of upside

cheers

Jess9
23-07-2006, 02:55 PM
Hi Steve, great to hear a new voice. Welcome!

Responses below (bold);

this looks kind of interesting, esp at current market cap...very strong board, and I was pleasantly surprised to see Geoff Hill, who is a very well regarded and connected Sydney investment banker as an independent...

J9: Agree. I also note the Board is paid very modest fees at present, admirable at this stage of development, as many other such coy's Boards charge like they have already delivered an OXR style result, and are producing!

I guess the major concern is the current JORC resources of 200K oz only supports a 4 year mine life....which may not be worth the capex...i am guessing this mine life (or lack thereof) would be a major factor in the conclusion of the Feasibility study to mine...do you know what stage the company is at in respect of the F/S?? are they waiting to firm up additional resources before proceeding with a F/S? if drilling is still continuing and there has been no F/S to date (is this correct??) then production must still be at least 12-18months away at a minimum...

J9: My understanding is that increasing resource is a key project (termed phase 3) at the Karangahake Project – most advanced (K. contains the previously worked Talisman mine), and HGD are aiming to at least double the existing JORC compliant resource (and have indicated a further goal is to later add more resource (further drilling etc) of surrounding permits to support a 20 yr mine). A BFS was to be part of Phase 3 or 4, I think (leading on from underway resource upgrade).

J9: Also remember Golden Valley and Waihi North projects are likely to also be incl in the spinoff, these both surround Newmont's Martha pit/Favona mine. HGD have already disclosed that within these two projects there are several "major structures and geophysical anomalies, similar to those associated with the Martha and Favona gold deposits" – pg 2 of the 2006 Annual Report. So while this is still pie in the sky stuff, at this stage - there is real potential to significantly add new resources to a Waihi spinoff, later. Also a Waihi spinoff coy (NZX listed) may be a likely t/o target for Newmont - considering the obvious synergies.

J9: The above info are my guesses based on past quarterlies/annual's etc, take it as you will.

J9: RE resource work/BFS progress, I understand 'phase three', may have been overtaken by the planning for the Spin-off coy containing the the Waihi projects, so p3 could be a little behind, but this is just a guess! However considering that Karangahake is likely one of the three assets within the spinoff coy/IPO, I would expect detailed information to be released shortly. Any more said on this now is purely speculation, hence I stop.

at this stage, given lack of resources, still very much an explorer, though they seem to have plenty of projects on the go, as well as the corporate action, gives potential for plenty of upside.

J9: Yip, Northland - exciting raw untouched new permits, and of course Broken Hill Cobalt LTD (33% HGD – at cost/associate coy, in a/c’s presently), IPO – value realisation, indicated to occur later in the year.


PS sorry cannot get to bold, added J9 in front of response.

steve fleming
23-07-2006, 04:59 PM
Thanks for those commments Jess9.

Re your comment: "J9: My understanding is that increasing resource is a key project (termed phase 3) at the Karangahake Project – most advanced (K. contains the previously worked Talisman mine), and HGD are aiming to at least double the existing JORC compliant resource (and have indicated a further goal is to later add more resource (further drilling etc) of surrounding permits to support a 20 yr mine). A BFS was to be part of Phase 3 or 4, I think (leading on from underway resource upgrade)."

That is the key...They really need to get their resources up hopefully to the 1mil oz range - ie to support a 20 year mine life @ 50K oz a year...that would clearly place it as a decent size resource amongst other ASX gold explorers...even a doubling of the existing 200K oz resource should generate a nice re-rating...

Given the company's positive statements, the history of the Waihi area and the fact that Newmont, the worlds largest gold miner, is next door in Waihi - a resource upgrade sounds to be not too far away, hopefully leading on to a postive F/S...maybe this will be anounced prior to the spinoff??

Just noticed the options aren't listed on the ASX, but are listed on the NewcastleSX...any idea why they maintain listings on 3 exchanges??

croesus
23-07-2006, 09:07 PM
Hi Jess, been away from a computer for a few days, re Waihi do not know enough yet to warrant a guess...suffice to say I am bullish on HGD and hope to buy more this coming week.

Interesting posts over the last few days looking forward to an announcement before the AGM
regards Croesus

Jess9
23-07-2006, 09:17 PM
Hi Steve.

I thought they were (options)listed on the ASX, maybe re-check the code? Re the NSX thing, I think this occured back in 2002, when HGD was a foreign exempt coy on the ASX and had to drop off due to a listing requirement change back then, they then made arrangements to trade on the NSX to assist AUS investors etc, I assume since then HGD/HTM (obviously) applied for, and obtained a new general listing (back on the ASX) and I can only assume the benefits associated with maintaining the additional NSX listing still outway that cost.

J9

Jess9
23-07-2006, 09:25 PM
Hi Croesus, aye its good to get out.

(Announcement) before AGM is a must, as we will likely need to vote to approve any of the above discussed.

Should be a interesting week.

I may bid on a few more also - if the price is right

Jess9
23-07-2006, 09:34 PM
Steve, HTMO seems to work.

steve fleming
23-07-2006, 10:39 PM
quote:Originally posted by Jess9

Steve, HTMO seems to work.


thanks Jess...although no HTMO on offer at the moment!!

BAPP
24-07-2006, 08:36 PM
Hi to All ,

I’m new to the forum and probably don’t have the experience of many of the readers, however I do want to make the comment that I believe Heritage Gold has been overlooked as a potentially attractive investment for the latter part of this year.

With gold hovering upwards of the US$600/oz there is surely significant potential for the share price to increase against it’s recent values, especially with some good news and HGD reports suggesting bigger plans for the second part of the 2006 year.

I understand from media releases and this forum that HGD management are trying to create an IPO ‘spin off’ of their Waihi permits and that they have also stepped up their North Island exploration programmes.

This is combined with the huge potential of their Broken Hill investment in Australia, which also has IPO listing potential. The timing of IPO’s could be just right and hopefully advantageous for the existing shareholders who have been extremely patient over the past year.

With an AGM just around the corner and further announcements probable due these recent news/media releases there seems to be plenty of upside for this share, especially at the present price.

I believe that investing is about vision and realising potential, so I see no reason not to add the my present shareholding in HGD at it’s present price. There is obsoletely no way I will be selling my shareholding while these positives completely out weigh the negatives. There seems to be little downside in my view.

I hope I’m not being naive, so I will look forward to positive feedback or criticism.

Happy Investing to all.

Regards
BP.

Jess9
25-07-2006, 06:32 AM
Nice one BAP. Welcome to this forum!

Gold holding above US$610/oz after recent profit taking - good.

Per Kitco.Com....Barrick currently in two mining plays - to increase its gold reserves, making offers for Novagold and Pioneer Metals. I mention this in light of any Waihi spin-off, NZX coy listing - I wonder, as stated before above, if Newmont may be interested in adding reserves and high potential exploration targets to their exisiting Waihi operations? Maybe this is a canny defensive play by the Board to ensure any possible future t/o offer is fairer/better for s/holders, by splitting out Heritage's various logically grouped value components, before any such play?

Jess9
25-07-2006, 11:40 AM
Quarterly activity report should be out later this week or early next.

underground
25-07-2006, 11:43 AM
yeah.. ill be looking foward to that.. see what theyve been up to with my money.. =)

BAPP
25-07-2006, 12:28 PM
Thanks for the welcome Jess9. I have been following your HGD comments with interest.

I'm only quessing but I suggest some corporate activity may be in the 'wind' and therefore would suggest there could be some interesting announcements made following the Quarterly report and leading up to the AGM.

I'm looking forward to some positive news as I have been accumulating this share for a while now and have felt it has been overlooked by many investors. (I have followed Summit Resources for similar reasons over the past year and reaped the benefits.)

I believe HGD could follow a similar pattern if the 'known potentials are actually realised' by the management and of course I'm also assuming the price of gold will stay reasonably buoyant over the next few years.

Regards
BP

moimoi
25-07-2006, 03:53 PM
hard to have your guys fervour for HGD....it has gone nowhere for years.

What is their proven verifiable gold resource? Does anyone know.?

I seem to remember an annual report coming out some years ago that had a picture of a bit of dirt bounded by Tea Tree stakes and some fella on all fours scratching around on the surface with a fork.[:p]

Lets face it...in this country you cant prune a tree on your property without resource consent....a new consent to gold mine the coromandel?? unlikely.!!

:):)moi.

Jess9
25-07-2006, 05:15 PM
Currently a 205,000 Au JORC resource (plus 800k oz Ag I think) - all in Talisman Mine.

Assuming $600/oz and xrate of 60c US and undiluted cap (131m) - this means gross revenue per share of $1.59 (double this if/when reserves double), just on Gold (excl silver).

The above is very, very basic, gross revenue only, and over the entire life of mine (at present resource etc)... but does give some feel to the current shareprice, and potential for movement.

How do others out there compare junior goldies - resource on resource etc??

BAPP
25-07-2006, 07:16 PM
I have been basing my assumptions on HGD achieving a conservative US$520/oz with an exchange rate of US$0.50c/$NZ. That is approximately a 20% drop in the price of gold and the value of the $NZ against the $US compared to current values.

With reports that highlight a resource of 205,000 oz gold (JORC compliant) for the Talisman Mine alone, this alone suggests a reasonably attractive investment and definitely suggests it should be a better market performer based on current $ values and exchange rates.

Now calculate some of the the additional possibilities into the equation!

Without repeating what others have already highlighted in this forum, the current share price seems to be considerably under valued, even based on my conservative figures.

The additional positives I foresee with HGD are the potential of their Broken Hill Investment along with the Northland prospecting permits. The possibility of the Waihi resource being separately listed on the NZX and the associations of some of the senior management team with other mining corporates in NZ/Aus.

For example, I believe the Managing Director, Peter Atkinson, is also the main shareholder of Prophecy Mining and some of the other Directors are heavily involved with Broken Hill and have vast experience in the mining sector on both sides of the Tasman.

Another factor to consider is the life expectancy of a mine (ie: 5 years or 20 years of drilling potential). At this stage based on neighbouring resources there is no reason to think that a 20 year drilling cycle is out of the question for Talisman Mine and I believe that HGD may have already indicated this possibility.

When you look at other ‘players’ in the gold exploration/mining sector, I do not see any others that have such a vast range of options available for increasing shareholder wealth.

There is no doubt that there is a certain amount of speculation in my comments, but it is noticeable that the HGD management has several options available and the share price has lingered in the past two years compared to other similar mining companies.

When comparing I do not see any reason for the share price not to be around 25-30 cents at this point and although I am expecting the have to wait a few months for this to be realised, I see no downside while I’m still buying at around 5-7 cents.

Keep Smiling and good investing to all!

Regards
BP

croesus
25-07-2006, 07:42 PM
25 to 30c hard to imagine, but mining stocks can be volatile... what would that make my 750k of HGDCA worth I wonder.
cheers Croesus
disc also hold other varietys of HGD plus a swag of WID

shasta
25-07-2006, 07:52 PM
I'd be happy to jump in around 6c & get out @ 10c.

Still i'd like to wait & see the quarterly & the IPO details before jumping into HGD.

BAPP
25-07-2006, 08:38 PM
As I said, I'm speculating based on a few announcements and research that seems to suggest potentia. At the same time HGD don't cost the earth to buy into. (I have owned HGD shares since 2005).

I hold what I consider to be heaps of HGD shares(comapred to the rest of my portfolio that is!) and intend to buy more at present prices. I still have to acquire 250K shares to reach target.

I don't envisage making any quick money, but still believe the next 6-12 months could be exciting if existing announcements eventuate sucessfully.

Research is important, but vision is everything!

Keep smiling & Investing!

Regards
BP

Jess9
25-07-2006, 10:16 PM
Purely a gut feel, but from watching other small cap goldies (ASX) rise over the last 6 months, I think HGD has definetly been forgotten/left in the dust - when considering its relativity with its peer's market prices, today. I would of thought HGD at 10-15c not unrealistic with gold over US$600oz now. This 'overlooked' angle is one of the several reasons why I have collected a small stake, and hold/net accumulate.

I also agree with a time frame of 6-12 months. I'm hoping the Board has HGD's "moter" revving away now and is just getting ready to drop that clutch! Then we will get some traction, on action and...$$ a rolling!

Sorry that is bordering on "ramping"... Sniper, care to add a dose of healthy sceptism, as a counter balance? ;)

Posted before, but HGD has a great web site at www.heritagegold.co.nz if you have an interest take a look, and make your own mind up, and come back with comments.

J9

Jess9
25-07-2006, 10:23 PM
Nice - gold bouncing up again, now US$ 621/oz (up $8.10). Go you shiny thing!

steve fleming
25-07-2006, 10:26 PM
quote:Originally posted by Jess9

Purely a gut feel, but from watching other small cap goldies (ASX) rise over the last 6 months, I think HGD has definetly been forgotten/left in the dust - when considering its relativity with its peer's market prices, today. I would of thought HGD at 10-15c not unrealistic with gold over US$600oz now. This 'overlooked' angle is one of the several reasons why I have collected a small stake, and hold/net accumulate.

I also agree with a time frame of 6-12 months. I'm hoping the Board has HGD's "moter" revving away now and is just getting ready to drop that clutch! Then we will get some traction, on action and...$$ a rolling!

Sorry that is bordering on "ramping"... Sniper, care to add a dose of healthy sceptism, as a counter balance? ;)

Posted before, but HGD has a great web site at www.heritagegold.co.nz if you have an interest take a look, and make your own mind up, and come back with comments.

J9


Hi Jess....problem is with only 200K oz, even if POG hits 1000USD, ,mining is still unlikely to be feasible....as soon as they upgrade their resources to a meaningful size the share price will re-rate

Jess9
25-07-2006, 10:39 PM
Steve, thats a fair point. They must be up for 30 to 40m CAPEX? - so uping JORC resources is key, no question. The Board know this well however, and HGD hold the permits in the right locations to deliver this - so lets see that IPO detail!

trackers
26-07-2006, 12:12 PM
Company Announcements




Heritage Gold NZ Limited - Announcements




HGD
28/06/2006
ANNREP

REL: 1434 HRS Heritage Gold NZ Limited

ANNREP: HGD: Annual Report 2006

A copy of the 2006 Annual Report has been mailed to shareholders today and is
attached.

The Annual Report can be viewed on the Heritage Gold website
www.heritagegold.co.nz

Sue Sangster
Company Secretary


Click here for important information on prices & quotes

Jess9
26-07-2006, 06:11 PM
The next quarterly report is to be released Monday 31st July.

BAPP
27-07-2006, 06:18 AM
Has there been any indication of when the AGM will be held?
Is usually in the first two weeks of August, but I haven't seen any announcement.

BP

croesus
27-07-2006, 07:40 AM
I emailed HGD yesterday re this. 29th August but may be reviewed. Confirmation next week.
Croesus
( Never drive faster then your Guardian Angel can fly)

BAPP
27-07-2006, 08:08 AM
Thanks for the info Croesus.

BP

BAPP
28-07-2006, 07:05 AM
With the AGM date extended out to the end of September, is this an indication that management needs more time to plan for seperate listings of existing resources?
BP

Jess9
28-07-2006, 08:00 AM
Yes. That would be my thoughts. Maybe some more info tonight/Monday?

Jess9
29-07-2006, 08:01 AM
Interesting depth to sellers building back on NZX - and over a quite a range (5.7 to about 10c - several being on offer over 6.5c). Most sellers not really wanting less than 6c too. Buyers however not too sure either yet if this is cheap or not, but confidence I think is building, then... off with a hiss and roar?

ASX depth is very choppy in comparison, on both sides (buy sell etc), their market looks unsure of what to value HTM at on Friday's close, lead from NZX next week?

Monday's quarterly eagerly awaited by all, as reflected above me thinks. Hope the quarterly gives us some firm dates for Broken Hill's plan, a gold resource (drilling) progress update, and current status and short-term direction for Heritage, again with timeframes would be nice. However I would assume anything significant would need to be announced in a separate preceding announcement. That said the AGM gets ever closer, and I bet the Board wants things well underway for that meeting, so maybe NZX announcements will be full of the HGD ticker till then!

Croesus - if the part paid Warrants don't get a proportionate entitlement (and I'm hoping they will) to what ever comes on offer (spin-off related etc), the Board may choose to instead reduce the final payment to reflect the value of any divested asset (similar to the (2c?) reduction for the option entitlement last year). What do you think?

Slightly of topic, but...I see John Mowbray holds a swag of Warrants - the same JM (stamp King) as was on the front page of the Dominion Business section yesterday?? Anyone out of general interest know?

Finally, gold moving back up again slowly - US$635.30/oz. No significant movement in itself but looking like a great price for IPO gold revenue projections ; )

Anyway, have a nice weekend all, and golden dreams!

BAPP
29-07-2006, 09:55 AM
Looks to me if the Aussie market is trying to get a lead from this isde of the Tasman, but we're not sure ourselves. Everyone is still a bit cautious and is understandably wanting some positive news before committing dollars.

Not to many investors will be averaging much under 5 cents per share for their holding so I quess that may be why the sellers are all asking 6 cents or above. Time will tell whether they are getting out too early.

There are too many options open to HGD management for me to be quitting yet, so I'm waiting patiently for those announcements to start flowing through.

Happy investing and may gold keep climbing!

BP

Jess9
30-07-2006, 10:11 AM
Just noted, only 264k through this week (vz over 1m through last week) with only a minor pullback after last weeks strong surge, technical/graph must be looking better and better for a move higher, confidence growing, or the market just waiting for more concrete info?

Edit - make that 1.5m traded last week.

Jess9
31-07-2006, 07:01 PM
Well nothing completely new, as expected, but a little more detail...

----------------------------------
"The directors are planning the transfer of the gold properties in the Waihi district to a special purpose subsidiary and part of the shareholding in the new company (“Newco”) will also be spun off to Heritage shareholders. Plans for listing of Newco on the New Zealand Stock Exchange are well advanced and will involve a prospectus share issue to its shareholders to raise up to $5M.

Heritage is establishing a skilled management team for Newco to focus on evaluation of the gold projects under the direction of a separate board of directors. These steps will lead to a substantial increase in exploration and evaluation work in the Waihi district.

As part of the spin-off company process the priorities for exploration work over the next 12 months are being re-evaluated, in line with an increased tempo of exploration work."

----------------------------------

Looks like an exciting next 12 months, reading a little between the lines ; )

BAPP
01-08-2006, 09:56 AM
Yes, the Waihi 'spin off' sounds exciting, but I was hoping to see a bit more info on the outlook for Broken Hill. I think there is huge potential on both sides of the Tasman.

I will be hoping for some new details to be announced over the next few weeks leading up to the AGM.

Does anyone think there could be a takeover/merger proposition by another mining company?

BP

moimoi
01-08-2006, 10:38 AM
exactly what is "exciting" about it??

as an existing HGD holder you are being asked for further cash to pay for what you already "own"

this is a capital raising exercise....

they have been "evaluating" waihi for years with no significant announcement in relation to what they have "evaluated" for years also.

moi.

Jess9
01-08-2006, 12:11 PM
Exciting.. is that the spin-off will likely take the Waihi prospects to an operating mine with nice cashflow : )

Cap raising..yes but only partially; At present the Waihi Prospects are simply that, prospects. The $5m goes a little way towards building an operating mine/plant etc. Also $5m does not buy alot of CAPEX, perhaps allows HGD holders to get in at the start. Newco will need to borrow/leverage up, and or private place to fully develope. Getting extra shares in Newco as part of the cap raising (maybe with options attached) could be the cheapest entry - if Waihi is even moderately sucessful.

A spin-off will highlight HGD's Waihi assets to the market.
Newco could be a likely t/o target if the prospects are as good as HGD have alluded to in the past.

HGD share price should rise if Newco's value is realised on market (and HGD retains a decent chunk), and HGD has the other assets/prospects to focus on and progress, while Newco/Waihi is being pushed forward by a seperate dedicated Management/Board.

This is HGD's chance to shine, especially with gold almost 2.5 times more valuable than a few years ago.

BAPP
01-08-2006, 12:34 PM
I totally agree that on past news there seems little evidence to support a further cash input from existing shareholders.

However I also assume that the existing management would realise that unless they can show quantified prospects ahead then a further IPO of the Waihi resources will likely need to be supported by a significant other party/shareholder. I understand that the Directors have a broad network of contacts in the mining industry.

As noted I am more interesetd in what is happening with the Broken Hill venture as it was indicated a few months back that an IPO was being considered. It was disappointing that there was no further news of this in yesterdays report.

BP

Jess9
02-08-2006, 09:51 AM
Gold up again, now US$646.30/oz.

Wonder if Newco will be recruiting from Newmont's Martha staff. I heard, with the wind-down of the Marth Pitt coming up (and Favona not operating yet)there maybe experienced hands available in Waihi shortly. Might be good timing for hiring etc.

Jess9
02-08-2006, 06:00 PM
Hi BAP,

---------------------------------------------------
BROKEN HILL COBALT LIMITED (New South Wales)
BHCL has continued to consolidate its tenements in the Thackaringa Cobalt project and is reviewing opportunities for further exploration, including drilling, over the next 12 months.

Heritage has 33% equity in Broken Hill Cobalt.
---------------------------------------------------

Agree, be good to get a firm steer on where this one is heading.

Maybe no change (from the previously mentioned IPO intention) but HGD Board are wanting to focus themselves and investors on the Waihi spinoff for now?

Alternatively, maybe after Waihi is spun-off, more resource/time will be available to advance Broken Hill to a producing stage. Maybe this can then be developed into a key AUS dollar asset for HGD, rather than being flicked as is.

Some interesting possibilities, especially with the current metals bull supercycle infront of us!

BAPP
02-08-2006, 10:00 PM
Agreed Jess9.

I've liked HGD due to the many possibilities and I believe Broken Hill could be the key to making HGD shares sort after and appealing to the market. Of course the prospect of the gold price increasing further is also another very positive factor.

I believe the success of the Waihi 'spin off', will depend on how well the management can sell the future prospects to existing and potential investors. The share price would easily esculate if they could can show they have gold and silver resource that can be profitably mined for ten plus years. Hopefully the Northland permits can eventuate into significant finds also.

Like you I have been surprised that this share has been overlooked by many, but that has been OK while I have been accumulating at the recent low prices. I quess past history makes people wary, but I've always believed in buying shares on potential especially when they are undervalued compared to other same industry players.

I will be staying positive about HGD while the price of gold holds above US$550 and will be waiting patiently for those important announcements over the next month or so.

Looking forward to good news before the AGM.

Good investing!
BP

Jess9
02-08-2006, 10:22 PM
Hi BAP. Assuming eventual production etc etc...producing cobolt would add a nice diversification to HGD's proposed outputs, currently purely a gold and silver play. Also as Broken Hill is an Aussie coy when/if this operation shows some leg and lists on the ASX, those Aussies (who love mining stocks etc) may really go ($$) for BHCL! If this happens as you note, HGD's share price should re-rate quickly to reflect BHCL's success : )

BAPP
02-08-2006, 10:25 PM
PS:
I'm still wondering about the takeover/merger potential, by another mining company that may be interested in the Waihi region and want additional exploration areas to add to their own resource.

Wouldn't the proposed Waihi IPO be an ideal opportunity for such a company??

BP

BAPP
02-08-2006, 10:40 PM
Hi Jess9,

Part of my enthusiasm for HGD is that it is listed on the ASX (HTM) and that the success of the company isn't solely dependant on gold.

As noted earlier I believe Broken Hill is the key to taking this share to another level.

As you say, the Aussies love their mining stocks at the moment and I'm sure most commentators expect this to continue for some time yet.(at least another decade)

HGD's share price would most definitely be re-rated if Broken Hill was to list.

Exciting times, I think!

BP

croesus
03-08-2006, 06:22 AM
Hopefully that will happen within a year.......before my HGDCA,s suffer a terminal illness

Jess9
03-08-2006, 07:12 PM
quote:Originally posted by BAP

PS:
I'm still wondering about the takeover/merger potential, by another mining company that may be interested in the Waihi region and want additional exploration areas to add to their own resource.

Wouldn't the proposed Waihi IPO be an ideal opportunity for such a company??

BP


I to was wondering whether the spin-off is in part a smart defensive play from our Board. Benefits maybe;

1 Waihi's value becomes more apparent in a few weeks (hopefully not NOG weeks :D)

2 Following 1, obviously positive for current HGD share price

3 A reward of free(?) Newco shares. And the likely right to subscribe to more Newco shares (at an entry level price, maybe with options attached etc) if you want more exposure to this specific asset.

4 If Newco (as opposed to HGD now) is later taken over then HGD/it's shareholders retain the Northland prospects and the investment in Broken Hill Cobolt.

5. Following 4, HGD likely gets paid out handsomely (from selling up its Newco blocking stake at a premium price etc), and hopefully after adding significant value by establishing a viable mining operation. Again, very positive for HGD holders.

Just a few thoughts, maybe way of mark.

J9

Jess9
03-08-2006, 07:16 PM
Mentioned before, but wonder if Oceania or Newmont are a little interested?

Also nice to know the MD has a significant stake in HGD (approx 8.7m per 2006AR)

BAPP
03-08-2006, 08:57 PM
Hi Jess9.

I would have to agree on most points as I have similar thoughts to those you have listed.

There is plenty of upside in your comments although I think the reward of freebie shares may be a bit hopeful ( discounted maybe, but not by much).

I also suspect that there may be some interest from Oceania and possibly others and will continue to search for a bit more info on this scenario.

Would also like to hear what other readers think about this!

It's always nice to know that the Directors have close connections in the same industry especailly when consolidation in mining is taking place.

I would also assume an announcement of some consequence is likely in the near future, otherwise potential investors will turn their backs on this share as their patience runs out.
(See comment by Croesus)

Look forward to your feedback.

Gold price still improving steadily-just they way I like it!

BP

BAPP
03-08-2006, 09:12 PM
PS.
Also wondered about a link up between Glass Earth (St Andrews Goldfields)due to similar exploration areas, including Northland.

Yout thoughts!

BP

BAPP
04-08-2006, 09:06 PM
Volume very quiet this week, bit of uncertainty from both sellers and buyers it seems.
Still a waiting game (patience is a virtue some say) I don't think so!
Maybe some announcements towards the end of the month might improve the appeal.
What do you think Jess9?

I'm still looking to get more HGD to make target, hopefuly if timing is right it will be just before the big news around the last few days of the month.

Hope you all have a good weekend and all the best for the next week of trading/investing.

BP

Jess9
05-08-2006, 03:01 PM
Hi BAP,

Why do you think Broken Hill is the asset more likely to take HGD to the next level, as opposed to the Waihi area gold reserves/and prospects (to become Newco Ltd etc)?

J9

PS Gold looks to be gaining good support low to mid 600/oz, nice. Roll on Newco prospective financial statements - gold/silver revenue projections etc.

Jess9
05-08-2006, 03:04 PM
With the above coming together , and a little bit of luck too, you might be able to retire early on your share Warrant gain, Croesus!

croesus
05-08-2006, 03:39 PM
I must admit I am quietly confident that Heritage S/P will increase in the next 6 months,my end game plan on HGDCAs is if they run up to 6 or 7 c would be to then sell 400,000 and turn the other 350,000 into headshares..... for that to happen though the heads will have to at least double in value .

WID is my retirement hope, and failing that TPC or TAG (au).

The real plan has a bricks and mortar factor.

cheers Croesus

Jess9
05-08-2006, 09:43 PM
Croesus - reckon CA holders will get a portion of the Newco spin-off?

Warrants are usually excluded - but as they are currently partly paid, i.e. the warrant is now represented by a partly paid share (2c paid of 8.5c from memory), maybe the CA's will get a 1/4 allocation (to reflect the partly paid share etc) to any Newco distribution?? If not I would hope the Board reduce the final payment to reflect any asset distribution (Newco etc).

J9

croesus
06-08-2006, 09:56 AM
I don't know Jess, but as this is not the Feltex board I am sure all shareholders will be treated equitiably...... though I hasten to add I have not held shares in Feltex... when they floated I thought it was a bit smelly....

BAPP
06-08-2006, 07:36 PM
Hi Jess9

I think it is more about the psychological effect that will impact on HGD on the NZX market if Australian investors get behind HTM when and if a Broken Hill listing is successful.

The Aussies seem to be a bit more at ease with mining and exploration companies and I think NZ investors will follow their lead if the see the share price climbing on the ASX.

As I noted earlier I have also followed SMM for about a year now and I believe the NZ buyers of SMM take the lead from the Aussie market each day. I foresee a similar trend with HGD, (maybe not to the same value unless the provide solid evidence of long term gold resource in Waihi and Northland) but never the less a significant increase.

It wasn’t long ago that the SMM share price was around 20c and now look at it. Plenty of NZer’s buying too.

I could be way of track, but I believe HGD could follow a similar rise in fortunes, but I think it will be lead by confidence from our trans Tasman neighbours having confidence in Broken Hill and then wanting a bigger slice of the action over here.

That's when the share price will go to another level and I will be able to retire.- But there is a long way to go yet.

We need some good news to get things rolling. I really think it is important that significant news is released over the next month leading up to the AGM, otherwise a lot of warrant holders and head share holders will be really despondent and they have been pretty patient to date.

The price of gold obviously helps, but we need more investor interest(more buyers compared to sellers).

BAP

BAPP
06-08-2006, 09:29 PM
While there is the possibility of exciting news in the next month or so, I also see little downside in buying HGD at the present share value. The share has definitely been overlooked by investors as the price of gold has progressed significantly over the past two years. At around 6 cents per share HGD is at half the price it was two years ago. (I think the charts show a range of about 4.8c to 12c over that time from memory.)

Most news 1-2 years ago seemed to indicate that the potential of this share would be revealed late 2006 and this still seems to be the case. So at this stage I see no reason to doubt that the management of HGD isn't on the right track. (With pending announcements one could say they are right on track.)

As Jess9 mentoned, it is always encouraging to see an MD who holds a good parcel of shares and I reiterate that the other Directors have significant experience also. (and Broken Hill has great potential)

I do not see a significant risk in comparison to the possible return. Maybe I'm being naive, but I am quietly confident that may shareholding will pay handsomely over the next 6-12 months.

BP

BAPP
06-08-2006, 09:57 PM
Sorry, I missed one last point in my last post. Neither the MD or Directors seem to get paid extremely high salaries, so I quess it is in their interest to improve the share value too.
Even though the MD may hold 8.7 million shares, their value is not that great at present (based on 6 cents/share). I'm sure he would like that value to increase. I hope so anyway!

I hope everyone has a good week, especially HGD stakeholders.

BP

Jess9
07-08-2006, 07:55 AM
Nice one BAP :), good wrap up comments, and I think your assessment re AUS investors influence may be right on the money. Anyway, let's see how this week unfolds.

Jess9
07-08-2006, 09:04 AM
Congrats BAP! on SMM - just looked at it's chart, did you get in low 10c and hang on till recently?? Well done on spotting SMM, must be close to a 20 bagger!? Bye bye mortgage : )

If HGD is another "sub 10c SMM" now (as both you and I hope...), then things will be very exciting over the next two years!!!

Go HGD!!

BAPP
07-08-2006, 09:23 AM
Unfortunately I was too hesitant to get into SMM that early, however bought in early 2006 and sold last week. Did quite nicely over past 7 months and have put most of the proceeds into HGD(so mortgage is still there.) Have been building on HGD for past year and hope to make target before AGM. Should reach goal this week the way sellers are lining up.

Still think SMM will go significantly higher also, so will probably look at buying back in, if I have any spare dollars and the price weakens slightly.

No hesitation with HGD!

Have a good week
BP

Jess9
07-08-2006, 01:01 PM
Yip, some sellers stacking up, but still no trades. Announcement re Newco spinoff required!

J9

BAPP
07-08-2006, 02:10 PM
I am surprised at the number of sellers leading up to what could be an interesting AGM. With announcements only weeks away it would seem prudent to at least see what the outcome of these announcements regarding a Newco are likely to be. I don't see any downside, but if the sellers out there would like to drop their sell price just a little more I'll be buying.

BP

BAPP
07-08-2006, 04:39 PM
Target holdng reached. - Now to sit back and wait for the good news to flow through.
I don't think I'll be waiting long, but then I'm fairly patient when it comes to investing.

Hope all HGD shareholders start to get some payback for their long wait.

It was interesting to see that todays SMH had an article about the merger of mining companies being the hot topic at their conference over the weekend. Only mentioned high profile companies, but smaller ones(companies) often think the same way and can generally get the wheels moving faster with regards to merger and acquistions.

Seems to be heaps of options open for HGD management to take. I think Jess9 is on the right track with some of his/her scenarios and I'm just hoping the aussie factor plays a part soon.

Unfortuately I'll miss the AGM now it's to be held in September but will be reading the announcement boards via the internet with interest every day.

Hold tight if you have not sold already, there could be an interesting few months ahead and what have you got to lose!

BP

croesus
07-08-2006, 06:25 PM
Good for you BAP, I respect those who put their money where their mouth is...HGD is worth the punt..... if you have any spare do the math on WID....I am planning a Special Shareholders Meeting at Marmont Ridge in 2007.... ( Mongolia)
cheers Croesus

Jess9
07-08-2006, 07:52 PM
Joined, and was reading over at Hot Copper this afternoon also, searched HTM... a poster there a few months back thought a larger N. American Miner was looking over HGD as a possible t/o target and was asking if anyone else had heard anything...no more than that said to date, so who knows...(apart from Newmont ; )

One thing to consider through, HGD has not been able to negotiate a toll treatment arrangement to date, seems silly for Newmont not to allow this, extra cash for them and they have plenty of spare capacity...wonder if Newmont prefers to mine HGD's gold for themselves!

Maybe this is one reason for the "Newco" spin-off...a purpose built t/o target, that would leave HGD/shareholders with lots of cash and allow HGD to retain Northland and Broken Hill etc??

Be interesting to watch the Newco register!

BAPP
08-08-2006, 06:22 AM
An educated quess would tend to support the idea that Newmont Mining would be a probable suitor for a sizeable share of any Waihi ‘spin off’ by HGD.

Existing exploration by HGD in the Waihi area would tend to indicate resources that are not dissimilar to the Waihi / Martha Hill Mine owned by Newmont Mining. Historically this mine has been one of New Zealands largest gold mines and has the capacity to mine the resource from HGD exploration finds.

However my only question with regards to this suggestion is why Newmont haven’t made a move in that direction already.?

It seems there is already a lot of interest in this permit area by international mining companies. Just look at St Andrews Goldfields taking a significant interest in the Glass Earth company which also focuses on exploration in the Coromandel and Northland region.

St Andrew ‘s has indicated that they are acquiring shares for investment purposes and depending on market conditions and other factors they may increase or decrease their holdings in Glass Earth in the future.

So there is plenty of interest mounting and I suspect that HGD management with their experience in mining and exploration will be well aware of this interest and will be working hard to get the most value they can from the Waihi resource for HGD shareholders which includes themselves.

Along with many other HGD shareholders I'm sure the MD will want to see his 8.7 million shares increasing in $ value and of course he is also a major share holder in Prophecy mining which also has a signifcant stake in HGD.

There’s only a month or two to wait before the prospects start to become much clearer to all and I think we can be reasonably confident that it will be an upwards trend from then on. Lets hope so anyway!

BP

Jess9
08-08-2006, 05:18 PM
BAP, Croesus, Trackers and other interested shareholders. I have requested a senior staff member, or Board member, consider contributing to this forum, when appropriate, and only to valid questions raised etc.

This could be a very good additional way for HGD to clarify investor related questions and raise the company's profile and communication with investors/potential investors.

Digger, was good enough to suggest a similiar arrangement to NZO (who accepted), and BWR's contibutions (to the NZO thread) have been well received and appreciated by all shareholders.

HGD are considering the above at present.

BAPP
08-08-2006, 05:36 PM
Thanks Jess9.
That's a great idea. It must be a beneficial option for both HGD along with existing and potential shareholders alike. Appreciate your move on behalf of all interested parties.

Lets hope HGD management look at your request favourably. What have they got to lose!

BP

Jess9
08-08-2006, 05:38 PM
Perhaps interested investors/watchers could also indicate their support (or not, and if so why - if that is the case) to the above - this may allow HGD to better gauge an appropriate response, as they will be looking on.

BAPP
08-08-2006, 07:30 PM
Just a follow up on my comments yesterday I thought the following article in SMH may be of interest to readers who are following mining and exploration companies. www.smh.com.au/news/business/miners-search-for-aussie-gold/2006/08/07/1154802819024.html.

BP

Jess9
08-08-2006, 07:51 PM
Hi BAP, good article. Reading that, knowing Martha is winding up - with Favona not on line yet and with heaps of additional production capacity spare (not to mention sunk CAPEX), ...looks too simply.

Maybe Newmont is shorting to get a deal...then swoop in at 9c/share for 90%+, and take all of HGD!! OK, back to reality ; )

Jess9
08-08-2006, 07:55 PM
...and reality is 15c+ :D

croesus
08-08-2006, 08:31 PM
Hi Jess, yep keen on the idea of some executive input on sharetrader, HGD could take a leaf or chapter from C/C aka the Examiners... WID's book on that regard.
regards Croesus

BAPP
08-08-2006, 08:51 PM
If price of gold stays at above US$550 and HGD provides further info to show significant resource for 5-10 years mining then 15cents is an understatement. A lot depends on the life expectancy of the resource.

If these oppotunities eventuate and if a Broken Hill IPO is successful I think we are looking at ten x present share price. There are lots of 'ifs' in this equation, but as I keep saying little downside. I've always been taught to look for potential while limiting the risk. HGD fits that criteria for me. Worse case scenario is I lose $50K, however the outlook I forsee is gaining at least $200K. (yes I have my fingers crossed too!)

Has happened before!

BP

BAPP
08-08-2006, 09:26 PM
PS: I don't think many of the top 20 shareholders will be selling their stakeholdings for 9 cents either. They know the business and will generally be there for the long term and they know the potential is greater than that. So for a prospective buyer to get hold of 90% of HGD may be rather difficult, especailly given the present top 20. (Maybe 15-20 cents would be a temptation, but then who would really know?) Unless that is the reason for the Waihi IPO?

BP

Jess9
08-08-2006, 09:38 PM
Hi BAP, looking over a few past quarterly's...noted Broken Hill is not purely cobolt, they seem to have several JV's and wholly owned permits for other base metal permits (gold and copper I think). Be interesting to see the detail and get more about these prospects, and there status when/if BH goes IPO.

BAPP
08-08-2006, 10:22 PM
Jess9, I think you are correct again.

The following is an extract from an announcement by HGD regarding their Broken Hill Stakeholding in the last quarter-

BHCL has executed an agreement to acquire the entire interest of Western Metals Copper Ltd (Receivers and Managers appointed) in EL5679 adjacent to the Thackaringa cobalt project. BHCL is now consolidating its enlarged project interests under one exploration licence and considering stock exchange listing of the company, which has interests in attractive cobalt and base metals properties.

From the reading I have been doing, the exploration area consists of cobalt, copper , lead, zinc and gold.

So plenty of options open to HGD management.

BP

croesus
09-08-2006, 02:25 PM
Purchased more just now at 5.5c.... if these discussed floats come to pass, I doubt if there is any downside at this price.
Looking forward to the meeting.
Cheers... Croesus.

BAPP
09-08-2006, 04:35 PM
Totally agree Croesus.

I will be happy to pick up another parcel of shares if the price drifts below 5.5 cents. The price may drop 10% on no news, but it will rocket on any good signs and the management of HGD has clearly stated to the markets and media that announcements are close.

Of course it remains to be seen just how significant the news is for the investors amongst us.

HGD is still trading at relatively low levels when comparing the charts for the past 2-3 years against other exploration companies. Others seem to have moved upwards reasonably consistent to the price of gold. HGD has lingered behind and yet seems to have more potential than most.

Maybe this share is about to have a change of fortune.

BP

BAPP
09-08-2006, 09:54 PM
Another interesting article in today's SMH regarding Newcrest Mining. Seems there is a common theme/trend amongst mining and exploration companies at the moment. Hope HGD management are forward thinkers in this respect.
BP

Jess9
10-08-2006, 06:48 AM
Hi BAP, could you pls post that link?

I see gold attempting to break through 650 USD again, and almost maintaining the push! (was approx 648 USD at 7.45am 10.8.06).

Let's get those shovels ready, and hire hands to use them!

BAPP
10-08-2006, 09:35 AM
Hi Jess9,

The links are:
www.smh.com.au/news/Business/Newcrest-Mining-looks-to-future/2006/08/09/1154802946833.html

and also
www.smh.com.au/news/Business/Shield-Investments-to-raise-15m-in-IPO/2006/08/09/1154802941464.html

BP

Jess9
10-08-2006, 05:04 PM
Thanks, BAP. I see gold going just above 650 USD again! Thats over $1,000 NZ per oz!!

Not much happening on the share price today - as expected, still floating up and down on market whim, at least until we hear and digest some solid information about the coming corporate actions and hopefully the production plan for Waihi.

I think it's best not to look daily at price, rather weekly, if you can that is. It's too easy to buy or sell on herd mentality, rather than on HGD's significant prospects/potential...you may sell to soon ; ) Anyway enough rambling.

BAPP
10-08-2006, 05:17 PM
I want to keep my average price around 5.5 cents per share so I'm still happy to pick up a few thousand shares if price drops below 5.5 cents as it did today.
Gold price isn't quite sure which way it is heading just yet, but I think we will get a clearer indication by the end of the month.(obviously I'm bullish about gold price, but I wouldn't risk my house on it skyrocketing)
Just patiently waiting for significant HGD announcements, but still need to check out share prices each day to satisfy my 'need to know'.(the days always seem longer when your waiting for something to happen)
Sometimes you have to go by 'gut' feeling and I have a good feeling about HGD.
Time will tell.

BP

croesus
10-08-2006, 07:28 PM
Yeah, I know what your saying re gut feeling Bap, I am a contrarian by nature... i don't put a lot of cadence on charting, fundamentals are ok, but every other investor can work those out its not rocket science... the deal with being a contrarian is just that...
obviously you, or I, have to leaven it with a helping of commonsense ie I would'nt be a contrarian on Feltex ever...the other gut feeling boxs need ticking... sure I get it wrong at times....but, but when it works, it works big.
cheers Croesus

Jess9
10-08-2006, 07:43 PM
Hmmm... three good "Gut Feelings". Well, we'll either all be alot richer next year then, or their's a gold bug going round:D

Jess9
10-08-2006, 08:06 PM
BAP, the key to a rising gold price is logically that every additional dollar per oz increase, likely leads to a whole dollar also being added to a producers net profit!! (as no additional prodn. cost is incurred etc).

Then, start multiplying this additional revenue/oz (remember at no additional prodn cost - straight to your bottom line) produced per year (and also to value in ground reserves), and there is serious potential to make some very serious coin during a gold bull...hence likely hot t/o action into this run, which again logically fires up target share prices even further... then finally add in "the late herd" jumping in just because everyone "already in" has/is making money hand over fist!...any thing becomes possible during a bull run...!!

BAPP
10-08-2006, 08:08 PM
Hi Croesus,

I like to research chart analysis as a tool to asessing the historical trend of the share price, however this is secondary to researching the likely future potential of the company and the fundamentals of the market/industry it operates within.

Historical figures are just that, they do not tell you the future prospects of a share, only what has happened in the past. While historical info should never be overlooked it should not be your single source of reference for making a purchase decision. There are many successful businesses operating that would have never even started if the owners had only looked a charts.

Share purchasing, operating a business, buying property is about balancing the level of risk you are prepared to take for a probable/possible return and understanding the fundamentals and market perception of the product or service.

As for HGD I believe the risk or downside is limited compared to the potential return if the announcements already indicated by management become reality.

BP

BAPP
10-08-2006, 08:17 PM
Gut feelings combined with a lot of research and plenty of common sense thrown in to! How could we be wrong! We will know soon!
( oh yes, I'm crossing my fingers as well):D

BP

BAPP
12-08-2006, 07:38 AM
Hi Jess9,

Have you had any feedback from HGD regarding your suggestion for them to contribute to this forum?

Hopefully one or two of the Directors may have been at the Miners(Diggers & Dealers)conference in Kalgoorlie in the last week finalising some important deals for the future success of HGD.

Apparently this is the time and place to meet the who’s who of the mining world and link up the mining industry with the corporate and finance world.

I hope a Broken Hill listing was on someone's agenda. May be some interesting news in the next few weeks?

Still hard to foresee which way the gold price will head in the short term. Trading very much in an even band over the past few weeks. Still think price will head upwards in the medium to long term with increased demand.
Anyone own a good crystal ball?

BP

Jess9
12-08-2006, 12:11 PM
Hi BAP, I also sent a link to S/Trader (specifically this forum). I would imagine senior management/board members/MD, either have, or will take a little look over this thread, then go from there.

Nothing back from the coy secretary as yet, re above.

More input is definitely better on this thread to keep discussion active, and real. Therefore it would be an even better discussion forum if it included monitoring/input from a coy representative - to clarify reasonable questions (around publicly disclosed information) and allow all investors here to share in such responses.

Go HGD! Exciting weeks to come soon.

BAPP
12-08-2006, 12:59 PM
Yes, we definitely need more input from existing and potential HGD investors along with other forum readers so if the HGD management do consider the suggestion of being involved or replying to forum questions they can see there is interest from a broad sector.

IMO it must be beneficial to the company and investors alike to have an opportunity like this to understand the direction the company is heading and I'm sure it wouldn't hurt the share price or it's trading volumes.

(if I could find a good crystal ball I'd probably just buy a lotto ticket or two).:)

BP

Jess9
12-08-2006, 01:36 PM
From a quick look over past charts, I reckon between 5ish c to 6.5c is where HGD will bang between, till clear direction/news emerges, then if/when this news/progress pushes buyers well through 6.5c with support at that level on pullbacks, I reckon that would be a huge technical sign, that this one is in full take off mode (then watch it jump!) - this is just from keeping it simply, so anyone with better charting skills I would be keen to hear from...till then HGD simmers ; )

BAPP
12-08-2006, 02:56 PM
Agreed Jess9. Do you also think the HGD may 'play' a bit of 'catch up' % wise on other gold stocks if good news was to prevail?

As we have noted earlier HGD seems to have been overlooked at this stage by investors while other mining/exploration companies have increased somewhat in line with the price of gold.

I understand this stock still has a lot of sceptics for whatever reason, however this would change very quickly with the right news being released.

As I mentioned previously I watched SMM for a long time and I remember many critics making their thoughts known back then. If you look at the charts for SMM over the past few years you would have every right to have been sceptical, but both trading volumes and share price tell a different story today, especially over the past year.

While HGD will probably never reach the price levels of SMM I think the trading pattern will increase along similar lines if the Waihi & Broken Hill IPO's are implemented in reasonable time frames and are beneficial to all shareholders.

BP

Jess9
12-08-2006, 08:17 PM
BAP, I wonder if part of the reluctance is related to about 5-6 years ago, when HGD lost motivation to drive Waihi to production, mostly I would say for good and reasonable economic reasons back then - gold price being around USD $250ish etc.

I understand the HGD Board then went after the IT bull, with IT related IPO's and spin-offs. While they made over $1m for s/holders by doing this back then, I wonder if they may also have lost some faith with past gold investors who wanted to see a producing mine by now (not IT etc) as they believed in contrarianism and that a likely new gold bull run was just around the corner - and would have preferred focus retained on delivering a viable producing gold mine by now.

That said, I currently think HGD over the past 2-3 years have been quietly and diligently progressing their key prospects forward as the gold price has turned up – kudos to the MD and Board for this. Progression, that has gone un-noticed by many maybe… in terms of mine planning, resource knowledge improvement, identifying likely resource increase targets, and working through the RMA/and other required consent issues with central and local government, and beginning allowable mine upgrades (ventilation etc) all towards re-opening Talisman (i.e. the point I make is that long red tape lead in time to mining could be well underway). This “perceived inaction” I think is partly why HGD have been overlooked.

I hope to have the ‘quite progress angle’ proven when the “Newco” investment statement detail etc is released, hopefully soon. This angle may also be the case for Broken Hill, as even less is said in Quarterly’s yet it has been held since 2000ish. Therefore I think HGD is a market sleeper… about to awake!

Thinking back to paragraph two, one advantage of being “late” to production for this gold bull run, is while no gold has been dug up yet, the gold price has sky rocketed (200+ to 600+) - with no bank/risk requirement to hedge away these huge gains! I see Oceania a few months back even bought back there whole hedge book – a very good indication that gold is only going one way for some time yet. So…back to my point, existing resource (of 205,000oz – with a likely doubling of this with more drilling) is still waiting in the ground to be sold at full market price, for patient investors in HGD!

Finally, going back to my last post (above), I would really like to see HGD clearly communicate its "new strategy" (as noted in the 31 March Quarterly Report this year) to shareholders. Some clear up front goals and timeframes, for e.g. gold production in Waihi within 12 months, resource upgrade to 500,000oz gold, Broken Hill IPO by 31 December etc. I know my view here is probably too simplistic, but if something towards this was communicated to the market then shareholders and new investors could more easily understand the direction and planned timeframes going forward, and show this by voting with their feet (or broker in this case ; ).

I think the last paragraph sums up where we are right now, new investors watching and standing on the sideline, waiting for this direction to be shown.

J9 needs a cuppa after all that, good night all!

BAPP
12-08-2006, 08:45 PM
Hi Jess9,

Following your earlier comments I have spent some time checking charts from the past 3 years and read the posts on this forum and come to the conclusion that we have a lot of traders/investors sitting and waiting for a clear sign and direction from HGD management.

They are reading our posts, checking the charts, but they are not yet willing to commit to buying in just yet!. They will all have their own reasons for this, but obviously there is not enough positive factual news yet, so they are not willing to put their money on the line(understandable I suppose).

The management of HGD needs to show some integrity here and follow through with the announcements they have already indicated to the markets. (ie: Broken Hill & Waihi) and they need to provide the information within a reasonable time frame. Within the next few weeks leading up to the AGM would be preferable.

I have just reviewed a media article where the MD, Peter Atkinson indicates further announcements within a few weeks, that was a month ago! Investors get suspicious and annoyed when the people in top management positions don't front up. A few weeks can pass by quickly!

Maybe this could be a good reason for HGD management to join the forum and start dialogue with other forum readers and investors as you have suggested.

HGD has great potential, (that's why I promote the share and have ‘put my money where my mouth is’) but the management needs to show clear outcomes before the AGM, otherwise the share will continue to linger around its present value.

I believe the share price can and will exceed 25 cents in the next 6 months if my indicators are correct and the management follows through on their current announcements.

As I keep saying there is minimal down side and heaps of upside, actually I don’t even think you need luck with this share, we just need further confirmation/clarification of what has already been announced by HGD.

Actually HGD has been one of my easier share decisons to make recently, although I have to admit I would not have considered it 3-4 years ago.

BP

BAPP
12-08-2006, 09:09 PM
Jess9 are we reading the same manual. You deserve the cuppa, I'm having a wine.
I have a similar opinion, here's hoping we are on the right track!
BP:)

steve fleming
13-08-2006, 11:39 AM
Hi Jess & BAP

am still looking at HGD...i think as you say limited downside given the JORC confirmed resource of 200K oz, which gives an in situ value of gold of $200mil...mkt cap should be say 5-10% of in situ value...equal say 10 -20 mil....so plenty of upside (given that HGD have targeted a resource of 5mil oz - which is seriously massive), minimal downside, so options should be a good play.

that said, i think the info disclosed by the company is absolutely dreadful...i think the quarterly reports are some of the most uninformative reports released by an explorer...there is no info released detailing any progress towards producing from Talisban...are they currently drilling? if so how many holes? where are they drilling? Infill or testing? By last quarter (Phase Three) they had targeted a resource of 4 – 600,000 ounces - yet there is absolutely no mention of where they are in relation to acheiving this target...

Same with the Broken Hill company, i can't find anywhere any basic info such as maps of the EL's detailing targets/prospects/ surrounding mineralisation, proposed areas to soil sample/drill...just basic stuff you would expect an explorer who has been sitting on a project for a number of years to have/disclose. The fact that they don't can lead to the conlcusion that there is nothing too much of value there - esp since the company they picked up most of the EL's from was in receivership.

I think you guys are right in your assessments...until management shows that they are really committed to a well funded exploration program to substantially increase the resource size leading to the production of gold....rather than stuffing round wasting time on ipo'ing off their only assets, then investors are going to sit on the side lines.

Jess9
13-08-2006, 12:15 PM
Hi Steve. Agree, lets hope the HGD board fully appreciate the need now to release the level of detailed information and planning you refer to above - for Newco/Waihi mine, so the market can make an informed decision, and soon.

croesus
13-08-2006, 12:45 PM
Fair Comment Steve,BP and Jesse if information is not forthcoming shortly, we should discuss on this forum, what hard questions, unambigious questions which can't be watered down with weasel answers.. we will put to management at the AGM.
Which leads to the next question... who amongst us will be at the AGM, I hope to be, but I may be overseas that week.
regards Croesus

P.S Lookingto buy more HGD next week to add to my long term mining portfolio.. have recently dusted off and reread "Hot Commodities" by Jim Rogers (Random House 2004) its a must read IMHO
cheers Guys.

Jess9
13-08-2006, 12:54 PM
Steve - I also think your "in situ" comment is key.

If HGD double or can triple the current JORC resource within 6-12 months, then so will follow the share price. With "Favona style" targets mentioned/identified in prior quarterlies - on HGD's Waihi permits, and with the Newco concept, a vehicle to "raise the tempo of evaluation work" in Waihi, now the hard yards need to be done, as MacDunk I think says...we need some more "drill and thrill"!!

HGD have shown they can deliver - and on time, when you look back at there progress and results on phase 1 (initial resource of 109,000 oz) and then again on Phase 2 (lifting this to current 205,000 oz). Time to do this again...

Jess9
13-08-2006, 01:11 PM
Croesus, I also was thinking along your lines, the AGM is likely to include voting on some special resolutions (maybe to approve the Newco spin-off etc)??

Prior to the AGM could be a good time to send in, in advance etc, a list of pertinent questions for the Board to respond to at the meeting, during Q&A time. This may provide a meeting of minds and be good for both shareholders and the Board - direction wise.

Lets see what develops/and or is announced prior to the AGM? Maybe interested s/holders via this site could contribute, and a brief combined list could be sent through? I would assume several questions from individual investors would be along the same lines.

Anyway, food for thought.

BAPP
13-08-2006, 03:00 PM
From the end of August I will be in the UK for the two months, so I will have to give the AGM a miss.

I was disappointed when they announced the AGM being delayed, however on the 'bright side' I assume they have plenty of strategic planning to do before then.

It looks fairly evident from today's responses that we are all looking for some real announcements that give a clear direction for HGD and Broken Hill.

I have read most of the HGD announcements over the past two years and while they may not be very elaborate they do show some steady progress, albeit a bit slow for most of us.

IMO more announcements will start filtering through before the AGM, otherwise existing and potential shareholders will lose their patience, become disgruntled and look to other stocks to realise returns.

Any half decent board of Directors should appreciate that they need to be proactive with releasing clear information especially when they have publicly announced (hinted at)IPO’s, further exploration programs and acquisition of permit areas.

I have no doubt that HGD management will deliver on these scenario’s at some stage as It is in their vested interest to! They are the largest shareholders and I am sure they want to see significant returns just like us.

Lets hope someone at senior management level takes up on Jess9’s suggestion to be involved in this forum and and maybe provide some reassurance regarding any questions.
However, to get this happening I still think we need more readers/posters to show their interest in this topic.

I’m still looking forward to the next few weeks and feel confident about the future of HGD and it’s share price.

BP

Paddie
13-08-2006, 03:01 PM
Are the options treated the same as the head shares for IPO's etc?

Cheers
Paddie[?]

Jess9
13-08-2006, 03:13 PM
Hi Paddie, my thoughts (without opening the CA) would be, probably not directly. However I understand the Board were looking at whether or not warrants could be directly included in someway (as a warrant now represents a partly paid share), so I would assume they would also be cognisant of options also. Not sure of the outcome to date, awaiting those announcements… : )

BAPP
13-08-2006, 05:49 PM
I keep wondering about HGD as a takeover/merger target by another mining company that needs/ wants to increase or obtain increased levels of activity in the Waihi/Coromandel region.

Maybe HGD management is quietly confident about the levels of gold resource available in their permit areas and will be leveraging off this when they announce the IPO details for Waihi.

They need to present some good news to attract investors to this newco listing, especially with the lack of exciting news over the past few years. A majority stakeholding by a significant mining company would be just what this share needs to improve interest and price.

Each time I have read the SMH over the past few weeks there has been an article on mining and exploration mergers or acquistions, maybe this will be an outcome for the 'Waihi Newco.'

Broken Hill is a joint venture also, so this type of scenario is not unfamiliar to HGD management.

Look forward to your feedback

BP

Jess9
13-08-2006, 07:30 PM
Hi BAP. I'm definitely no expert in this field (so this is not a prediction – just a ramble after a glass of wine... so take full warning now!!), but just thinking out loud, so to speak on your last topic - you’re HGD, you know Waihi is worth a lot more than the whole current market cap of HGD – but yet you can't show it via JORC to the market, as you need $$ first to JORC it up and get Waihi started… yet the HGD s/price is too low to raise new equity without unacceptable dilution...what do you do???

Maybe you decide to spin-off a New co (holding Waihi assets only). Then you set a target value for this New co., say $50m cash needed to JORC up and produce. Then you settle on a debt equity split (say 50%), therefore you need a $25m equity stake, so you find a key stake holder (maybe one with future t/o interest and additional mining skill/experience to add to your own) then you show them the value you perceive and that will be able to be proved up shortly with said cash, they agree, and buy in at a reasonable price (factoring in some exploration risk etc), say 30% of the New co for $25m cash?? (peanuts if the resource is proven up). Note this then values New co. to the market at $83m on listing. You freebee off 20% of Newco to HGD holders (goodwill for patience to date), but you (HGD) retain a 50% interest for later…

Possible result:

1. New co is worth at least $80m+ on listing, as HGD owns 50% - therefore HGD’s market cap is immediately greater than $40m (vs $6.5m as of Friday for the whole of HGD) – this is independently supported by the New co market value/share price alone.

2. HGD shareholders/option holders/warrant holders all very happy as s/price has bagged 6 times, over a few months...and takes there hat of to very smart Board ; )

3. HGD shareholders have “free” New co. shares to play with, on top of the healthy HGD share price rise.

4. The cornerstone shareholder later makes a t/o offer for New co when full value starts to becoming apparent and a generous offer is made to HGD for the remaining key stake, up goes HGD again price now 25c + ; ) hey who knows, look at AUM this year (code?)

5. Win win for all!!

OK, very likely way way off, so change the equity %,$ to cornerstone inv. a bit, and maybe the real grand plan is not too far off???

BAPP
13-08-2006, 08:25 PM
Jess9,

I like your thinking and I wouldn't be surprised if your reasonably close to the mark.
I believe the HGD management must have 'something up their sleeves' to have any confidence with regards to a Newco listing of Waihi resources, otherwise there will be few takers and they may find it difficult to raise the required capital.

Most of the neighbouring Waihi mining resources far exceed 205k oz and I suspect HGD management are confident that they will be able to announce larger finds at the time they sell an IPO to the market.

If we see a mining company as a cornerstone investor in the Newco then I would think your scenario may be correct. That could see a lot of happy HGD shareholders indeed, especially if we see the price of gold staying at present levels or increasing and investors like to see the gold actually being mined!

The additional benefit to shareholders would be if the Broken Hill IPO proceeds and some of those Aussie investors and mining companies see HTM as a real prospect also.

The Broken Hill investment is not only gold resource, but copper and cobalt and supposedly in high quantities also. This would create a flow on affect and IMO a further spike in the share price as investors get excited about the extent of the prospects.

One of my reasons for investing in HGD is the amount of options that seem to available to management.

IMO we could see HGD as a ten bagger in that instance and within a reasonable time frame (ie:6-12 months) if our scenarios are even partially correct. Either way this share could be favourably revalued soon.

BP

steve fleming
13-08-2006, 08:40 PM
quote:Originally posted by BAP

I keep wondering about HGD as a takeover/merger target by another mining company that needs/ wants to increase or obtain increased levels of activity in the Waihi/Coromandel region.



I would be very much surprised if HGD has not already engaged in reasonably high level discussions with Newmont...it makes so much sense - HGD has the gold, while Newmont has the infrastructure, the capital and needs the gold....

HGD have already sugested a Newmont JV as a production option - "The various scenarios for HTM to earn revenue from underground gold production include two possible approaches;1. Cooperative efforts with Newmont involving the treatment of ore at the processing plant in Waihi;"

As for the structuring of this - could take many forms...would think the obvious one would be for Newmont to earn an interest in HGD/"Newco" through funding further exploration,feasisbilty study etc and development up till production.

steve fleming
13-08-2006, 09:06 PM
quote:Originally posted by steve fleming



I would be very much surprised if HGD has not already engaged in reasonably high level discussions with Newmont...it makes so much sense - HGD has the gold, while Newmont has the infrastructure, the capital and needs the gold....



Ok...just noticed that HGD acknowledge they have already talked to Newmont....this may have already been posted from their website before.

"The Company has had discussions with Newmont. The Waihi Mine has produced around 8.0 million ounces of gold and is a ‘mature’ operation with a need for new ore to process in the coming years. The synergies here offer considerable potential to both parties but will be subject to negotiation and HTM management’s decisions as to what is best for HTM shareholders"

Hmmmm....so this may be what the whole IPO approach is about....Newmont takes a stake in NEWco or earns an interest through funding

Seriously, if Newmont (the worlds largest gold producer - or is it maybe the 2nd largest now,anyway) does get involved (giving HGD instant market credibilty) the 5-10 bagger that you are talking about will just about be a certainty

steve fleming
13-08-2006, 10:46 PM
Followers of HGD may also like to follow the progress of Ballarat Goldfields Limited (BGF)...BGF are developing a mine based around the old mines in the historical Ballarat gold district in Victoria...kind of similar to what HGD is attempting to do with the previously mined Talsiman mine in Waihi

One of the problems that BGF encountered upon developing their mine was the existence of unexpected voids - that is gold that should have been there based on the BGF JORC model...however when BGF mined it was found not to exist, presumably because it had already been previously mined, but had never been properly documented/recorded.....maybe an issue for HGD?

BGF is down about 50% since the start of the year