Hemisphere Resources (HEM)

[Huang Chung]

Here's a junior explorer that could be in for a bit of excitement in the not too distant future.

They've got various bit of ground prospective for gold, nickel, uranium, but the thing that could set the market alight are their iron ore interests, where drilling is set to commence in May. There tenements look to be at the right address.

Here is a summary of their iron ore interests:

http://www.hemisphereresources.com.au/hemisphere-mining-projects/iron-projects

And todays announcement that the way is now clear to commence drilling at Yandicoogina South:

http://www.stocknessmonster.com/news-item?S=HEM&E=ASX&N=487868

At the current shareprice of 82c, market cap around $57m.

Disc: Bought a few today.

[shasta]

Here's a junior explorer that could be in for a bit of excitement in the not too distant future.

They've got various bit of ground prospective for gold, nickel, uranium, but the thing that could set the market alight are their iron ore interests, where drilling is set to commence in May. There tenements look to be at the right address.

Here is a summary of their iron ore interests:

http://www.hemisphereresources.com.au/hemisphere-mining-projects/iron-projects

And todays announcement that the way is now clear to commence drilling at Yandicoogina South:

http://www.stocknessmonster.com/news-item?S=HEM&E=ASX&N=487868

At the current shareprice of 82c, market cap around $57m.

Disc: Bought a few today.

Website could do with an update!

Could only find a very outdated company presentation

Surely there are better Iron Ore plays about?

[Huang Chung]

Define better. This one interests me as a punt on them getting some very good channel iron drill results in the not too distant future, combined with a lowish market cap.

Could all go pear shaped though.

[shasta]

Define better. This one interests me as a punt on them getting some very good channel iron drill results in the not too distant future, combined with a lowish market cap.

Could all go pear shaped though.

Fairly tight capital structure, is there much liquidity in this?

How about CAP's announcement today?

[Huang Chung]

Something like 70 million shares. Liquidity is very good ATM, and there seems to be a bit of interest in the stock.

Potentially shades of UMC in this, should they (and that, of course, is a big 'if') prove up a quality resource (i.e. being taken over by a big neighbour who wants to consolidate).

CAP seems to have turned 'nothing' into 'something'. GIR holds something like 15% of CAP.

[shasta]

Something like 70 million shares. Liquidity is very good ATM, and there seems to be a bit of interest in the stock.

Potentially shades of UMC in this, should they (and that, of course, is a big 'if') prove up a quality resource (i.e. being taken over by a big neighbour who wants to consolidate).

CAP seems to have turned 'nothing' into 'something'. GIR holds something like 15% of CAP.

Trading Room said 57m undilluted, that sound about right?

You have had alot of success of late, so im following you with interest HC.

Good to see GIR push thru $2.50 too

[Huang Chung]

Shasta

See attached:

http://www.stocknessmonster.com/news-item?S=HEM&E=ASX&N=486894

(PS..I've had my share of dud, too.....)

[shasta]

Shasta

See attached:

http://www.stocknessmonster.com/news-item?S=HEM&E=ASX&N=486894

(PS..I've had my share of dud, too.....)

You're too modest HC!

I see like your previous favourite GIR, they are looking to spin off some gold assets

[shasta]

Couple of Anns out today from HEM

HANCOCK RANGE: DAVIS TUBE RESULTS ENCOURAGING
http://stocknessmonster.com/news-item?S=HEM&E=ASX&N=546974

Fantastic FE grades at 66-68%, thats DSO quality :)

YANDICOOGINA SOUTH PROGRESS REPORT
http://stocknessmonster.com/news-item?S=HEM&E=ASX&N=547014

 Offtake discussions underway including Chinese steel producers
 Consultant Mining Engineer appointed
 Next stage of Metallurgical Testwork underway
 Environmental Studies prepared

[drillfix]

Sounds wild shasta.

Its a pitty many of these Iron Ore Juniors have taken a complete flogging of late.

The Chart for HEM is terrible in a complete downtrend, you would think with what news coming out and by looking at the chart that this would be a completely different company being discussed.

Take a look at the chart, all the EMAs lined up whilst declining. Caution needed for any reversal on these downtrends as you can see previous breakthroughs the 13ema and 30ema only to fall below again.


HEM daily and weekly >> http://img.myph.us/fwJ.png

What could be different here is the fact that it has had 7 touches supporting at 20c which could justify the recent up thrust being a potential reversal.

I would put a short term target of 29.5c on it where the 90ema resides. And anything above this, would be considered a breakout and possible change of direction/reversal but this would also be confirmed on the weekly chart if price were to break past the declining 30ema on the weekly.

Very testing markets at the moment as you know for many stocks though.

[shasta]

So todays action from 21c to 24.5c hasn't crossed the blue 30ma indicator?

HEM now has an EV of $3.3m for a small, but high grade JORC Iron Ore resource

[drillfix]

Yep, on the daily chart (left chart) it has crossed the blue 30ema.

I suggested that on the weekly it had not though, as well as the caution on the daily because also shown on the daily chart is previous attempts and success crossing the 30 ema line, only to fall back again, only to continue a decline below the 13ema in a down trend.

Now, should this punch through and stay above the 30ema for 3+ candles or days, then this could signal a potential for reversal (hence the weekly eventually showing a move to and past the 30ema on the weekly chart to the right).

The story sounds good, but again Shasta, seems to be some relentless selling going on in these markets. Lots of money going into blue chip high profile liquid stocks yet small caps getting flogged and sold out on any news be it good, average or excellent news, as an excuse to take profits or exit positions, which seems to be happening quite a bit.

Had said in the All Ords thread about a huge concern on the American Debt problem that will need to be addressed. If we are completely honest with ourselves or if the US are completely honest with themselves, and ask themselves how are they going to repay this? Then the real problem is that there is no way to go but to continue to Kick the can down the road so to speak. But there are others over there whom do no want this to occur and legally the cannot borrow or print any more money, unless they change the law by August, so they can kick the can so to speak.

If this fails then the greece defaulting will be of No Significance in comparison to what may or could happen in the US, and personally I am becoming very alarmed by it all, like its some time bomb that potentially is going to go off. What even continues to rock me is that there does not seem to be no real fix for this except to face the music and take the Medicine so to speak, which if they do, we all know what will happen, but even if they dont, they just prolong it and then we all know whats going to eventually happen, and meanwhile, everybody is just a happy to pretend that it will all just go away or solve and fix itself, which in both truth and reality, it will not.

What are your thoughts on this Shasta? you are more of a numbers man than me I believe and I would love to hear your view even be it speculation to that US issue which time is running out.

[shasta]

Yep, on the daily chart (left chart) it has crossed the blue 30ema.

I suggested that on the weekly it had not though, as well as the caution on the daily because also shown on the daily chart is previous attempts and success crossing the 30 ema line, only to fall back again, only to continue a decline below the 13ema in a down trend.

Now, should this punch through and stay above the 30ema for 3+ candles or days, then this could signal a potential for reversal (hence the weekly eventually showing a move to and past the 30ema on the weekly chart to the right).

The story sounds good, but again Shasta, seems to be some relentless selling going on in these markets. Lots of money going into blue chip high profile liquid stocks yet small caps getting flogged and sold out on any news be it good, average or excellent news, as an excuse to take profits or exit positions, which seems to be happening quite a bit.

Had said in the All Ords thread about a huge concern on the American Debt problem that will need to be addressed. If we are completely honest with ourselves or if the US are completely honest with themselves, and ask themselves how are they going to repay this? Then the real problem is that there is no way to go but to continue to Kick the can down the road so to speak. But there are others over there whom do no want this to occur and legally the cannot borrow or print any more money, unless they change the law by August, so they can kick the can so to speak.

If this fails then the greece defaulting will be of No Significance in comparison to what may or could happen in the US, and personally I am becoming very alarmed by it all, like its some time bomb that potentially is going to go off. What even continues to rock me is that there does not seem to be no real fix for this except to face the music and take the Medicine so to speak, which if they do, we all know what will happen, but even if they dont, they just prolong it and then we all know whats going to eventually happen, and meanwhile, everybody is just a happy to pretend that it will all just go away or solve and fix itself, which in both truth and reality, it will not.

What are your thoughts on this Shasta? you are more of a numbers man than me I believe and I would love to hear your view even be it speculation to that US issue which time is running out.

If Greece was to go bankrupt, all hell would break loose within the EU (Spain next?), putting Western countries into another recession, & the first to feel the hit will be the spec end of the market when credit/access to capital, becomes tight, & DEBT becomes a bad 4 letter word ;)

I've heard that France is happy to convert there debt in Greece into 30 year govt bonds, so if Germany comes up with a similar arrangement a financial meltdown will be averted, but all eyes will be on the Greece Austerity budget - they simply cannot afford to go on like they have been!

Lazy bloody Greeks dont pay there taxes, & with such a large Govt workforce, they work 12 months but get paid for 14 months this is crazy & not sustainable!

The American's simply cannot afford to be fighting wars either when there own healthcare system is a mess, the $US600b injection into there economy over 8 months must nearly be over, so long as the Saudi's & Chinese don't call in there debts, the US may be able to refinance there debts via a long term bonds agreement, like France is doing for Greece. (Thats one of a few options they have available).

Even though the ASX in general is weak at the moment, there are still plenty of undervalued resource companies, & those with cash, or large JV partners should be able to ride out any flow on effect of the US economy & whatever the EU does with Greece. The NZ & Aussie markets/economies will feel the pinch, if there are any debt issues with the EU, North America, or closer to home with the Asian markets.

I keep reading that BRIC is where the global growth will come from, as China & India must make up ~40% of the worlds population, it's there demand for resources which is driving the Aussie market, but how long can they sustain double digit growth for?

HEM has ~$10m cash, & investments worth $3.6m, not bad for a MCap @ ~$17m, so they are well positioned for a while now. When the market is weak, i tend to look at specific companies with short term newsflow/upside, which is very selective, but theres always companies bucking the general trend!

Had the Japan nuclear disaster not happened i would have been looking at Uranium for energy, but it seems dirty old coal is here to stay meantime!

I do follow what goes on globally, & try to use any insight to postion myself accordingly, personally im looking at resource producers/near term producers either with plenty of cash, or generating positive cashflows, should there be another mini credit crunch, i want those to be able to ride it out, & maybe snap up some bargins when the dust settles...

[shasta]

HEM @ 22c, with $10m cash & $4m in AAJ shares has an EV of just $1.5m, for a small but JORC high grade Iron Ore project

Ok, the markets arent flash, general sentiment isnt great, but HEM is worth placing on watch, they have some very ambitious plans about getting there JORC project into production in the near term, even if its to blend with other companies lower grade Fe.

HEM & CXM are my interests in the Iron Ore sector, both as advanced explorers with JORC high grade resources

[shasta]

HEM @ 22c, with $10m cash & $4m in AAJ shares has an EV of just $1.5m, for a small but JORC high grade Iron Ore project

Ok, the markets arent flash, general sentiment isnt great, but HEM is worth placing on watch, they have some very ambitious plans about getting there JORC project into production in the near term, even if its to blend with other companies lower grade Fe.

HEM & CXM are my interests in the Iron Ore sector, both as advanced explorers with JORC high grade resources

HEM @ 20c now has a rather ridiculous EV of just $0.1m for there JORC high grade Iron Ore projects!

[Huang Chung]

HEM @ 20c now has a rather ridiculous EV of just $0.1m for there JORC high grade Iron Ore projects!

Now trading at a quarter of the price from when I started this thread......ouch!

[shasta]

HEM - Company Presentation

http://stocknessmonster.com/news-item?S=HEM&E=ASX&N=555939

YANDIGOOGINA SOUTH is there main Iron Ore projects (of the 4) & contains the JORC resource

Page 20 highlights the timelines & forecast production in 2013