Heritage Gold...HGD

[liffey len]

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]

Hi Liffey Len

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

[Jess9]

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]

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]

HGD has been moving in the last couple of days up.9 of a cent which is a hefty percentage.

[Jess9]

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]

When are these guys going to get their shovels out !

[Jess9]

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]

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]

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.