Fine must remember when next researching that when companies present plans to implement in two years that they really mean five or six years. This is a smallish open cast mine in a mining country not HS2.
I agree your point. Not only a statistical calculation of anticipated metal in the ground qualified by an overlying perception of the effects of prevailing market conditions and future expectations.
As PIs this is what we do for all our shares........I think.!!
In the past 6mths I believe market expectations have changed from a downtrend to what we may see as a bottom in front of the establishment of an eventual up trend .........we shall see !
If this is the case then clearly this will have a contrasting effect on the perceived value of metal in the ground. The greater quantities in up to date calculations will have a high gearing effect on valuation as the trend changes and matures.
But I add my opinion to the other posters who are putting a 2 year minimum time line on it.
Thats the risk you take as a long term investor. The added value isn't showing itself as Her are not in production and at the same time miners in general have fallen 70% due to the economic situation. You either wait and take the risk that the investment in Her bears fruit or you bale.
Yes but unfortunately the value concept doesn't apply HERe. Q - What is the "added value" of the extra assets and all that development effort of the last three or four years (yes three years+) ? A - The total value of the company has fallen by c 70% as Herencia has succeeded in wiping more than £20M off the market cap. Now the timeline is being conveniently pushed out to the two years plus window again.
There is a bit of a misnomer here. Provided the assets increase more than the dilution then come production time the one share is still worth more. Double the shares in issue quadruple the assets….. work it out
New HK owners: "We look forward to all of the Company's projects advancing and potentially making the transition to production over the next 24 to 36 months." So that means producer 2016 earliest = considerably more development $ along the way with H2 2014 + 2015 funding required = lots more dilution to look forward to.
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