Heritage Gold...HGD

[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.

[Jess9]

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]

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]

Time for a bit of analysis me thinks:

HGD Share Price (www.stocknessmonster.com)


Gold Price (www.kitco.com)

[trackers]

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]

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]

what....the hell..is going on here.....??

NZX


ASX

[Jess9]

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]

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]

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) : (