HER 0.00% 88.5¢ herald resources limited

her up 20% in the past 48 hours.

  1. 2,839 Posts.
    HER's distribution must rank as one of the most generous to shareholders since the giddy days of the Dotcom boom.
    To provide shareholders with 1cent stock, prior to a major investment bank (MBL) moving in is ample reward for our patience.
    It is most unfortunate that new readers to HC are regularly peddled the same mumbo jumbo and then, when a stock of this calibre gets coverage it only takes one line in “bold print“ to turn people off it.
    Sorry Chuck, but it had to be said.

    The facts are, as I interpret them now and have mentioned in previous HER posts:

    That HER has a Market Cap of around $25m

    Share Structure: 52m on issue (company listed in 1948 and has paid dividends in the past). HER possess’ an ideal structure to provide multiple percentage upside.

    As far as Gold sales go, when the A$ price ran up HER locked in Call Sales at $650 and $600 whilst possessing adequate sales at $606.
    (The gold price is presently around A$536).

    Last report, HER had around $5,000,000 in cash

    Herald are in Coolgardie and I know I’ve mentioned this before, but it bears repeating…..there are 800,000oz in JV with MPI Mines (MPM).
    HER have the plant, which cost $20m on the books, running for virtually zero cost, apart from what was required to bring it back to life and also the unfortunate incidences with lightning strikes (2 separate damaging ones)
    Ironically, nature with two foul swoops has totally discredited whomever it was that said “lightning never strikes twice in the same place”.
    Anyhow, Toll Treatment is providing additional revenue as well.

    The high-grade Empress deposit last year turned one sample, amongst many, at 1017gpt, with solid numbers throughout.

    Then we have the Springfield deposit of about 61,000oz.
    BTW this baby’s in NSW, so Bart and Homer wont be involved although Mr Byrne's expertise could certainly "value add".

    But wait, there’s more…..

    The new Balfour Project in Tasmania, early days yet, but it's on the books.

    Then there’s Dairi, which is HER's zinc-lead-silver resource with in excess of 10 mt at 15% Zn. I think the majority of zinc mines operate around 5% or lower. This
    could well support 10 years or more at 1,000,000 tpa of high-grade ore, which will be generating significant income.

    Newmont also operate in Indonesia and funnily enough the Corona Gold project is starting to look like one.
    Meluak as also been compared to Yanacocha (30m ounces in Peru).
    If Newmont can do it in Indonesia, and Herald’s Dairi project is in the best regency (won an award), why can't HER.

    Assirt valued Herald’s gold assets alone at 60c per share and that was prior to the more recent drilling.
    Companies such as ZIM & AVL help to demonstrate that projects in higher risk countries can actually trade towards a reasonable level.

    As you can probably tell, I love the story…..and as a stakeholder I may have the “rose coloured glasses” on….but hey, it’s a bit hard to be negative on a company like HER, especially trading where it has been in recent times.

    I welcome your constructive comments, especially ones pointing out what I’ve missed on the “down side”.
    Currently I'm living in a bubble, somebody please tell me where/what I'm missing in the HER story and give me a dose of reality.
    Otherwise, I'm doomed to eternal positive thinking.

    HER is up 20% in the last 48 hours.

    Good luck to my fellow owners,
    Carl.

 
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