# HIG - Highlands Pacific



## junmonkey (23 April 2007)

Some quick information to start off the thread if anyone's interested.

HIG is a Papua New Guinea (PNG) based miner focused on its 95% owned Kainantu Gold Project, 400km NW of Port Moresby. Annual production of 110koz of gold in concentrate is planned over nine years. Upside is from conversion of some of the 2.0Moz resource to reserves, exploration and potential expansion. HIG has substantial option value from minority interests in the Ramu nickel laterite and the Frieda River copper gold projects in PNG.

Market Cap: 129 million (23/04/07)
Current price at $0.21


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## Synergy (10 May 2007)

Seems to be heading south at a pretty dramatic rate. No real obvious reason for it that i can see. They assured ASX nothing was abnormal this afternoon causing a huge vol spike. Anyone know more?


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## junmonkey (15 May 2007)

a little late to reply, but yeah, it could be the crappy cash flow, or the fact that aspect huntly downgraded their rating from a spec buy to a "under review"


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## Ruprect (15 May 2007)

Very interesting really. They have a couple of decent looking joint ventures in PNG, one with Xstrata. Their gold production is well down on expectations (its running at a loss), and they do still carry some financing debt of US $22 million. Cash at hand is somewhere near US $24.5 million. But that only came about after a placement of $20 million in March. 

But the placement to Resource Capital Fund was at 29 cents. Thats just 2 months back.

Trading now at 14.5 cents, as far as i can tell, almost an all time low.

If they can get their gold production back up (which is unclear at this point), or if the joint ventures show some promising results, share could jump back up fairly quickly. That is, if there isnt something they havent been telling us! 

One to watch. I dont hold....yet.


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## YOUNG_TRADER (15 May 2007)

$70m EBIT loss I read somewhere due to *poor hedging*,

Whenever I hear those words I run, loss due to poor hedging (Giants Reef, Croseus, BMA Gold, Sons Gwalia)


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## junmonkey (16 May 2007)

YOUNG_TRADER said:


> $70m EBIT loss I read somewhere due to *poor hedging*,
> 
> Whenever I hear those words I run, loss due to poor hedging (Giants Reef, Croseus, BMA Gold, Sons Gwalia)




HIG's loss due to hedging was a result of production problems, producing at its Kainantu Mine only 21,000 ounces of gold from Jan 2006 to Feb 2007.

It had a forward sales contract at Dec 2006 comprising of 250,000 ozs to be fully settled by December 2008. The contract has since been restructured and rescheduled to 2010.

Under the accounting standards, operating loss was 27.5 million usd and the foward contract loss that was brought forward amounted to 36.2mil USD. 

I don't own the shares of this company yet, but am extremely interested in view of the 2.0 million ounces of gold at Kainantu and the recent huge price drop, which has since recovered a little after the new MD was appointed. Market cap is 114 million currently. Considering the asset that HIG currently holds, I think there is potential  once production shows indication of a turnaround.


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## Holdon (17 May 2007)

What is the actual market cap on this one,my uncle is a staunch supporter   of this from it's highs and tipped it to me.
I would consider buying if the fundamentals stack up on 2 mill oz, if only to rile him up and say I finally bought his recommendation........


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## TheRage (22 May 2007)

*HIG (HNG)*

Anyone holding. I have been for several years. Currently on 6% dividend yield. Not really as exciting as the yellow cake but the earnings are transparent and easy to understand. Kevin Ealy is doing a great job as director and discloses more than most. Net profit up 150% yesterday but mainly due to sale of MMC contrarian ownership. Excluding this significant item core profit was up 15% for the half year but this was mainly due to interest earned on securities owned by HNG. Net profit from Import business actually fell by about $800,000 which is the earnings which are the most reliable given that income from listed securities will fluctuate as the market does. However receipts from customers was up about 5 million and the fall in net profit probably due to the increase in expense in raw materials. This is promising, while operating efficiency has declined perhaps with the acquisition of two new businesses, economies of scale maybe achieved with clever management. 

The pro's of this company include large return of income to shareholders, steady capital growth a very solid return on equity and management that disclose more than required on their financial statements as well as give candid opinions of the companies earnings (no pie in the sky forecasts)

Cons include a heavy reliance on listed securities to make up earnings. Lack of interest in this stock, average turnover less than 20,000 shares per day therefore low liquidity.


Disclaimer this is not financial advice DYOR.


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## junmonkey (5 June 2007)

This stock is at 0.225 now, with quite a bit of volume. Is there something going on that we don't know?


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## J.B.Nimble (27 October 2009)

Some nice movement recently for HIG. Garampeiro has covered them several times this year, most recently with their Nong river announcement. Two advanced projects with deep pocketed partners and some good exploration ground to boot...

http://www.theage.com.au/business/nong-river-no-joke-for-highlands-pacific-20091025-henz.html



> Nong River no joke for Highlands PacificBARRY FITZGERALD
> October 26, 2009
> The Macquarie Dictionary tells us that ''nong'' is a shortened form of ''ning-nong'', an Australian way of saying someone is a bit of fool.
> 
> ...


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## Gringotts Bank (2 September 2011)

HIG looks ok at the moment.  At some point, may want to test the double bottom breakout possibility, which is at 34c.  Can put on 10% reasonably easily but won't get there in one move.


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## pixel (20 February 2012)

been very quiet around here.
My scans detected the possibility of some accumulation in recent weeks; could be worth hopping on board. Which I've started doing. Once the recent High is broken, it's probably away.


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## greggles (23 May 2018)

Highlands Pacific Limited breaking out this morning after announcing that it has entered into binding agreements relating to a streaming arrangement, private placement and strategic relationship with Canadian battery metals company, Cobalt 27 Capital Corp.

HIG is currently up 50.54% to 14c, and has convincingly broken through its previous 12 month high of 12c.


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## Cam019 (13 July 2018)




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## karlh (28 December 2018)

HIG - Highlands Pacific has issued a voluntary suspension order due to a potential change in control.  There are a number of parties that would be interested in taking Highlands Pacific out of play with the sum of the parts being worth significantly more than the whole.  Two significant stock holders are Cobalt27 and PanAust.  Cobalt will be interested in the Ramu project.  They recently paid more than the total current market capitalisation for a streaming deal that only represents a portion of the total.  Also, there is now a proposal to ramp Ramu up further and possibly extend the mine life.  So this will make it even more attractive.  The other, PanAust, would obviously be interested in the 20% of the massive Frieda River project that they don't own.  PanAust must guarantee the project financing for Highlands, so cheaper just to buy them out.  Then there is the Star Mountains project and this could attract the owners of Ok Tedi that are looking for new feed into their current infrastructure that is running out of resources to feed.  Then we have the Sewa Bay project.  Sojitz could be interested in what Ramu has on offer so could also be a potential.  

So will Highlands Pacific have a similar destiny that its former namesake Highlands had!

Watch this space in the coming days as it should get interesting.


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## greggles (2 January 2019)

Highlands Pacific is to be taken over by its largest shareholder Cobalt 27 Capital Corp. Current holders will receive 10.5c cash per share, increasing to 11.5c if the closing spot price of nickel exceeds US$13,220 per tonne over a period of 5 consecutive trading days prior to 31 December 2019.

According to this morning's announcement, HIG's largest shareholders, representing 30.1% of Highland's shares, have stated their intention to vote in favour of the scheme in the absence of a superior proposal. The company's independent Directors have also stated that they intend to unanimously recommend that  all Highlands shareholders vote in favour of the acquisition.

In my opinion, 10.5c seems pretty cheap for HIG, and I wouldn't be surprised if many holders vote against this. Many current holders would have bought in at a much higher price, as HIG was trading above 10c for much of 2018. Given that the deal has the support of the company's Directors and major shareholders, I would imagine that it is pretty much a done deal at this point.


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## System (21 May 2019)

On May 20th, 2019, Highlands Pacific Limited (HIG) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement whereby all of HIG's shares were acquired by Cobalt 27 Capital Corp.


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