HDR hardman resources limited

Onwards to Thon, page-13

  1. 3,800 Posts.
    who would have believed after the recent drilling results that HDR would still be 70 cents?

    One of the issues is capital. the share price is the same but HDRs market cap has actually gone up via the placements. By holding its price the ciomapny has actually gone up in value. High drilling costs etc will keep sucking up more cash and more placements will come. The two Chinguetti wells have cost many millions - for what?- to prove that the first well wasnt a one off hit. So these wells are not adding any more blue sky to HDR, more so reducing development risk. Yes this point could be argued against as reserves have been increased but the principle of my discussion I believe is correct.

    I agree that if more hits in a new frontier keep occurring eg Thon the blue sky in HDR will keep getting reinforced to those and perhaps more capital gain may occur . This is the key now to future price gains. But the story is more muddied now and price action will be less reliable.

    Dont get me wrong. I do believe the new frontier story. But holders should no longer see HDR as a true oilspec it was when at 5 cents with big market gains to be had on drill results. It is a mid tier stock in the league of AWE AYO ROC. What is a common element of these stocks? Arguably they are all extremely undervalued.

    As HDR make more hits, the odds of a WPL takeover increase by the day. However you would have to be a very patient person to by a stock on the basis that one day it would get taken over.


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