AIMs best Exposure to EV13 Jul 2019 09:54
The past 6 -12 months I have been amazed with how the market has overlooked this opportunity given HZM one of the best lowest cap Nickel mining stocks globally, with all the buzz surrounding EV's Im surprised people haven't been taking positions. The EV industry and noise surrounding it is gathering momentum now and soon everyone will want exposure in some shape or form to this huge seismic shift, probably one of the largest of our generation. Vermelho PFS being battery grade Nickel may be the catalyst to wake the global wider market up to HZM. I think it will be headline stuff... and this news is due imminently, could land Monday or any time..
Finally City Financials overhang has been absorbed and we have no loose stock, the SP here showing its first signs of rerating to fairer value. Fairer value to me here is 8-10p as a first stop but on any T/O if Onca Puma is anything to go by and we have 3 equivalent Onca Pumas according to JM then 20--30--40---50p is cheap! That isnt a ramp, thats fact... that sold for $850m for a similar spot in the Nickel cycle, near ideantical size and grade to Araguaia, same jurisdiction and same stage in the asset development. Perhaps offtakes landing for large sums $$$$ will wake the market up to the fact Araguaia is going ahead and can be funded by Debt and offtakes... equity is not going to be getting involved anywhere near these low levels.
The fact that HZM also have Velmelho which is arguably even bigger, higher grade and EV focused is just a screaming a BUY here especially given this company has cash well in to 2020.
Patience here I feel is about to be rewarded.