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I cannot think of any situation when private investors would be offered shares in a company at this stage. We are not in the boys club of multi million pound deals (collectively maybe) that are offered at a discount.
Shame but true.
It’s a very small amount to raise and will be already done out of small change for II’s . However at first glance seems unnecessary, cash in the bank nickel flying etc.
Could it be to cover the Orion position of major works needs to be started by end of March 2021 or they (Orion)could potentially lose their 2.5% royalty deal according to the original contract.
And if they are the cornerstone investor don’t want to compromise their position.
Or is it simply the board saying hang on a minute the game is changing upwardly almost daily, there is a lot of interest in our product and therefore our company value is increasing daily as well. So let’s assess what we need financially to ensure our progress in building the mine is not stalled and reassess our options going forward.
It suggests new inbound interest which could be for any one of or all of the valuable assets within the hzm portfolio.
Time will tell and probably be to everyone’s benefit.
Opportunity knocks unexpectedly again.
Great posting I have spent today going through notes files etc to put together a synopsis of Hzm as to where it was, how it arrived at this point and where it is going. Haha could have saved myself a couple of hours by having a cup of tea and reading yours which is great.
Something that I had forgotten was that Araguaia stage one is only RKEF to utilise the ferro nickel.
But Araguaia also contains limonite and cobalt which I knew but forgotten it is not included in any cash flow models.
So limonite resource 233,200 tonnes nickel 25,600 tonnes of cobalt. The limonite can’t be processed by RKEF so the limonite and cobalt will be stored during the mining of Araguaia 1 in a permitted mining site with all the infrastructure in place so it represents a low (effectively zero) cost source of nickel and cobalt that could potentially add significant upside to the overall operation.
To quote back in 2017 “this new development positions Horizonte with exposure to the fast growing nickel cobalt ev battery market”
Now we have all been looking purely at Vermelho for the ev market but it is in stage 1 just can’t be utilised without Hpal.
Someone tell me this is something everyone is aware of and is included in all other updates. And I have simply spent too long on the Roskill report and years of notes and Old rns that have scrambled my brain and these figures are of course included and it’s not just another area within the company that defies the logic of its current share price.
I’m off to find a bottle of red.
Park boy a bit confused as to what you are asking as EBA (European banking association I assume) is more concerned with financial stability within the banking sector rather than trade.
But as far as Europe nickel is concerned it is small in production terms compared to other regions and small even when compared to Araguaia and Vermelho.You have terraform in Finland and some Greek production but ultimately it will be simply a question of supply and demand. There will not be sufficient supply to be selective, I believe it will be more of a case of ,get it where and when you can.
Also Strum mentioned the price being below what he expected. Let’s not forget that a month ago we were at 6.45 close, tonight 8.75 close 35% in a month I’ll take that.
But yes , it is still so unrealistically below what it should be that it’s almost laughable.
Fund managers even Aim and Small cap funds are dictated by their mandated strategy which are designed to protect the investor. So are generally percentage based and risk averse so they can’t over expose. The supposed maestro Neil Woodford proved , that writing your own mandate can go tits up (technical term) but generally it is unlikely and irresponsible that funds will invest until the risk is reduced and that is even the case with high risk fund.
In Horizonte’s case some small positions may have taken place to gain a foothold by institutional investors but you can guarantee that the company will be on all small cap, aim , mining and special situation fund managers as well as much larger funds radar all waiting for funding to be announced so that as soon as the stock is derisked they can pile in.
You are right strum we all know the board will become a very different beast once the jump on the bandwagon punters get on board.
And there have been a few here over time but they tend not to last very long because a factually based reasoned and informed discussion is something they are incapable of being involved in.
If I ever need to be reminded of the crass nature of the majority of the human race I just log in to whatever is the flavour of the month BB and spend a few minutes reading unsubstantiated nonesense full of vitriol and playground talk then go and make myself a coffee, pour a beer or malt whisky depending on the time of day of course.
And always ask myself why do these people spend their time doing this , particularly those that are so obviously clueless and hide behind uninformed hope and stupidity pretending to be the second coming of Warren Buffet.
When, and it will happen this year ,the board is no longer an interesting and informed place to be ,very few of those who have been involved posting during the growth stage and invested wisely will be seen on here. There will be better places to be , and I suspect we will be there.
Also even though not a trader (did a lot years back) when hzm hit 10p a had £700 spare so I bought 7000 well a bit less because I had to pay 10.15p as a celebratory trade. Weird but I enjoyed it.
But I simultaneously put a £600 a point short on because the rise was not sustainable in the short term and I havnt done that for a long time.
Knocked the short off today for a profit of £835 so paid for my little share purchase.
Perhaps I should start trading again. Not a chance.
I like the thought process strummer a lot of it is true but in this case I think there was a simple explanation. There was almost a straight line upward trajectory for 13 days and the fuel ran out so had to drop back.
Nice bit of liquidity still not huge but beneficial.
What I am saying is that I made a calculated call based on what was realistic.
And believe me I felt hugely for those particularly the local population who had invested because it had potential to be an economic game changer in the region.
My point is very much that nothing is given, always have an objective view.
Sirius , I was in heavily ,loved the story even watched the planning committee on an illicit feed.
However it was not a blind call , yes a gamble without planning but it was always too vast a capex to complete the process which I realised and got out.
I also did very well having bought in at 7p and sold at 39p.
It’s about not being too in love with a share otherwise you are in danger of being blindsided. Research , don’t take advice from others feel comfortable and back your convictions.
Also continually reassess your reasons for investing and analysis any changes to markets or fundamentals.
This is a great story and has timing , product and management that has succeeded before. So ticks many many boxes and should reward all its investors by several multiples.
Be comfortable not greedy.
Agree wholeheartedly $14000 base case unlikely to be retested with all the pressure being upward $20k plus will be the norm as the mine is built. Which makes hzm a highly sought after and valuable commodity. Set up perfectly for 2021.
Thought the nickel price maybe exaggerated but no,pulled the live feed up and flying. I was pleased when it broke $16000 resistance recently be nice if $17k held.
Makes a mockery of the share price but realistically nickel will be averaging over 20k for a number of reasons over the next few years so the current price is almost immaterial.
Obviously some twitchy investors because of minor delays but from my perspective it is simply the company not ramping because they are focusing on the end product (A hugely successful and valuable company) and being realistic and importantly, honest about when everything will come together. I can look at a number of Aim companies who are seriously overvalued continually promise and never deliver contracts ,have offices that don’t exist or produce anything apart from pipeline business which never materialises. Yet still loved.
This is a genuine professional company maybe not savvy with the modern spin in terms of Facebook twitter with a false identity , it will frustrate but it will deliver.
By the way we’ll done luke for your leap out and in for a nice profit always satisfying.