Jack, I haven't been avoiding HD of late. I have good positions now in ANO and GBN bought on avg slightly above these 1.10-1.15 levels, and am prepared to buy more on stinky bids below that. I agree with the cons expressed here that HD mgt tends to be self serving, and the stock seems poorly placed and held, but they've also make shrewd deals on their properties, and now the market values everything nominally, discounting I'm not sure exactly what.
Setting aside SA in the case of GBN, they have HL taking them into low cost production at Ivanhoe, it's permitted, and GBN will get 100,000 oz, generating (including a royality) about $35m cf a year at current POG. Plus it's quite expandable. When I calculate shares based on what's in or near the money, and the 5.5 m wts, I get a mkt cap of $108m @ 1.12 US. They have cash of $23m, so EV is $85m. That's way too low for $35m cf in Nevada starting in 07, and Burnside to boot.
Are you in Vancouver now, probably not huh, winter? I will likely be coming up for the gold show there next week, perhaps we can hook up, been awhile, and might be a chance to get to the bottom of some of this. You asked me about QRL, seems a little too high cost, although not an expensive stock at all. I've always leaned toward sub-200 production prospects, just my philosophy, and right now the market isn't valuing even those for much. BTW, the recent cvt bond financing AGI just did is exactly the way to do it now. |
