# HDG - Hodges Resources



## chris1983 (16 April 2007)

My latest uranium play.  Based in Sweden.  Very speculative just like my other new Uranium play being ECH.

If you buy these do realise the risks.

*HDG : Total Class Issue: 21,709,978 
HDGO : Total Class Issue: 19,980,025 *

Currently at 57 cents.

*Fully diluted the company is just under 24 million dollars.*

In short the reason why I have bought Hodges is

Nathan Mcmahon and Clive Jones are both involved in this company.  They also are major players in BMN.  Looks interesting.  The reason why I bought these is pretty simple.  Some historical exploration with some good grades from the historic sampling/small amount of shares on issue/a large range of permits obtained.  Downfall is that I think there are some issues with uranium mining in Sweden.  Nuclear Power reactors power 50% of the counties energy though and I think if there are any issues they will all eventually change.  Everyone is trying to help the world be cleaner and Uranium mining is not such a bad thing anymore because it will help achieve a cleaner planet.  This is why HDG is my next speculative play.

Below was their recent announcement.

*Option to Earn Majority Interest in High Grade Sweden Uranium Projects*

_• Ability to earn up to a 70% interest in four projects with demonstrated uranium mineralisation in Sweden.
• Previous surface results up to 4.7% uranium oxide. IOCG and stratiform uranium potential exists over a significant area.

The directors of Hodges Resources Limited (ASX: HDG) (“Hodges” or “the Company”) are pleased to announce that the Company has reached agreement on four uranium projects in Sweden. The projects are:

*Asnebogruvan Project (1 permit)*
The area is prospective for iron oxide hosted uranium–gold mineralization as evidenced by the presence of hematite breccia and highly anomalous uranium, gold and rare earths in association with granites. Sampling by the Swedish Geological Survey (“SGU”) in 1980 within two pits assayed 4.7% uranium oxide (U3O8), 28 g/t gold, 0.32% wolfram, 2.7% tellurium, 0.15% yttrium, 10g/t silver and 25% iron oxide whilst a grab sample from a second pit assayed 12.6 g/t gold, 0.11% wolfram, 1.0% tellurium, 10g/t silver and 30% iron oxide (uranium was not analysed in this case). Pitchblende-bearing mineralisation was noted to occur within fractures and faults within a hematite brecciated sandstone. Within the local area seven more uranium bearing fractures were noted.  The area was also explored for stratabound uranium mineralisation in 1970 by the SGU. One and a half kilometres east of sampled pits, still within the claim area, drilling discovered an irregular uranium horizon averaging 0.054% U3O8.

*Norr Dottern (4 permits)*
Norr Dottern hosts an extensive uranium mineralised boulder field extending for over 3.5 km. Historic sampling of only a small set of boulders averaged 0.32% U3O8 and ranged up to 1.0% U3O8. Follow up trenching was completed in 1974 which  exposed a high grade uranium–bearing zone that assayed up to 28.2% U3O8 over 0.2 metres with an average grade of 3.5% U3O8 over 3 metres width along the 5 metre long excavation. A magnetic survey showed that the mineralised area was characterised by a pronounced magnetic low anomaly and additional magnetic lows were identified that were recommended for drill testing but never undertaken.

*Harrejokk Project (2 permits)*
Uranium mineralization was discovered at Harrejokk by the Swedish Geological Survey in 1970. Uranium mineralisation occurs within a granitic syenite and high uranium grades are common. Sixty five boulders averaged 0.25% U3O8 with values ranging from 0.1% to 4.2% U3O8. The Swedish Geological Survey drilled nineteen drillholes in the area to test for the primary source of the high grade uranium mineralisation. This drilling did not locate bedrock uranium mineralisation, which the Company will aim to locate. Two kilometres away at Harrejokk East three boulder trains have been defined. The Swedish Geological Survey drilled twenty five drillholes in 1974 to test the boulder trains, eleven of which intersected uranium mineralisation. Two moderately southeast dipping uranium mineralised structures were discovered. Best drill results included 4.5m @ 0.14% U3O8 from 85m and 5.3m @ 0.11% U3O8 from 34m.

*Sjaule Project (1 permit)*
Uranium mineralisation at Sjaune is hosted within north east trending, steeply dipping fractures zones over an area of 700m by 950m. Twenty-eight surface samples across the project area were measured with a gamma radiation detector. Five samples assayed by the Swedish Geological Survey in 1976, ranged up to 0.57% U3O8 and averaged 0.22% U3O8 over the main mineralised structure which is 20 metres wide and 300 metres long zone. Uranium mineralisation is characterised by pitchblende and brannerite. Pitchblende is a naturally occurring uranium oxide (UO2) and brannerite is a complex oxide of uranium, calcium, titanium and iron. The project is located in a remote location in a nature reserve where exploration is permitted subject to particular environmental procedures. The project was considered by Swedish governmental geologists in the 1970s to be the most prospective project within the Hotagen inlier and has yet to be drill tested.

TERMS OF THE AGREEMENT
The agreement was reached with Widerange Corporation Pty. Ltd.. Under the terms of the agreement, Hodges can initially earn 47.5% by completing the following:

 payment of US$60,000 cash on execution of the agreement
 issuing of 1,500,000 fully paid ordinary shares
 Issuing 1.5M Tranche A options exercisable at $0.50,
 1.5M Tranche B options exercisable at $0.75, (the Tranche A options must be
exercised before the B tranche is allotted),
 Issuing 1.5M Tranche C options exercisable at $1.00 (the Tranche B options must be exercised before the Tranche C is allotted),
 Spending US$1,000,000 over four years This agreement is conditional upon various regulatory approvals as well as shareholder approval. Hodges has the right to increase its equity to 70% by fully funding a successful feasibility study. The vendors’ free-carried interest will remain until completion of a bankable feasibility study.  Hodges has the exclusive right, until 22 April 2007, to conduct due diligence prior to entering into the binding arrangement outlined above. Currently there has been insufficient exploration over the projects to define mineral resources and it is not certain that further exploration will result in the determination of a mineral resource. The results have been reported in a range of technical reports sourced from the Swedish Geological Survey dating from 1969 to 1991. It is the Company’s intention to commence a more systematic evaluation of the projects following final due diligence once the field season commences.

Sweden has an estimated 15% of the world's uranium deposits and ten nuclear power reactors which provide approximately 50% of the countries electricity. The Company considers this to be a particularly exciting opportunity to earn a majority interest in four very promising uranium projects in a country which has a very advanced nuclear industry as well as a well developed mining culture and regulatory system._


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## chris1983 (16 April 2007)

I must also say in these high risk plays I dont buy heaps and heaps of shares.  I hold a small parcel of 10,000 oppies.  I'm willing to have a go in these grassroot explorers but Im not willing to risk all my money.  Good luck if you invest in these.


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## exgeo (5 July 2007)

Not sure why these have dropped so sharply on the July 3rd ann. Perhaps due to the general pullback in uranium stocks? The results seem excellent to me, with plenty of walk-up drill targets. Hopefully as it is Sweden, getting approval to drill won't take forever (I'm also a frustrated holder of CTS). Anyway, I took the opportunity to load up on HDG while awaiting drilling.


*5th June 2007* - Excercises option over Swedish uranium properties.

*3rd July 2007* - High Grade Uranium Results in Sweden. The *Asnebogruvan *rock chip results include a peak value of 7.7% uranium from old workings at *Langvattnet*. This improves on the previous maximum reported value of 4.7% uranium by SGU work. Also, assays at *Langvattnet *confirmed the anomalous rare earth element and gold signature of the prospect with thorium values peaking at 0.1% and gold at 1.6g/t. The Langvattnet anomaly is a high priority drill target for the company with the potential for discovering very high grade uranium mineralisation and associated rare earths and gold similar to iron oxide copper gold (“IOCG”) style deposits. At *Norr Dottern*, three samples from radioactive bedrock and boulders averaged 0.14% uranium with a peak value from outcrop with visible mineralisation of 0.19% uranium. This area represents another priority target for future exploration drilling along strike and at depth as few holes have been drilled to date.


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## Bushman (9 July 2007)

Ann today - HDG hold option to purchase 90% interest in Moliagul Victorian Molybdenum project. According to the website, the project has 'the real potential to host significant resource of economic molybdenum'. 

*195 mt @ 0.07 Mo, 50 mt @ 0.15% Mo, 30.5m @ 0.11% Mo. *

Great timing given the renewed interest in Moly given likely global supply issues and the spike in Mo prices that should follow. Good diversification to the current uranium exposure. Like it most as it shows the management are on the ball.


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## P.O.D (9 July 2007)

Moly is the next big resource this stock is extremely undervalued. There will be huge demand for Moly in the next 1-2yrs l'll be getting on any stock with Moly exposure. I'm on this one!!!!


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## doctorj (9 July 2007)

P.O.D said:


> Moly is the next big resource this stock is extremely undervalued. There will be huge demand for Moly in the next 1-2yrs l'll be getting on any stock with Moly exposure. I'm on this one!!!!



If it's undervalued - what would you 'value' it at? 

Please provide support for these types of claims.

Thanks,
The ASF Team


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## Bushman (1 November 2007)

Is this stock on anyone's radar? 

Current activities from Sep activities report:
*MOLIAGUL (Victoria) MOLYBDENUM PROJECT*
• Drilling programme commenced.
• Option to earn a 90% interest in a major Moly project situated in Victoria.
• Large widths of high grade mineralisation reported from historic drilling.
*SWEDEN URANIUM*• Hodges exercised its option to earn up to a 70% interest in four projects.
with identified uranium mineralisation in Sweden.
• Securities issue to the uranium vendors approved by shareholders.
• Potential for IOCG style uranium mineralisation confirmed.

Current share price of $0.285 @ 43m shares gives a market cap of $12m. Cash in the bank is $6.8m - so more than half the current marked cap! 

There are no buyers at the moment. Orders in at 28c down to 14c. So it is fair to say it is very illiquid. 

Now I know this is highly speculative given no drillings have been finalised. But they are cashed up and look ready to spend. They only spent $40k on exploration in the last qrt (presumably on the drilling due dilligence report). 

Anyway I don't own any of these. Much lower and there does not seem to be any risk to me from a balance sheet point of view. I am watching like a hawk.

** Edit: I should add that the company is currently conducting due dilligence on the Vic moly tenement. Due dilligence period end 30 November 2007 at which point they need to excercise their right to the moly project. Option is for 90%. So might be too early to call on this one.


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## lazyfish (7 November 2007)

Bushman said:


> Is this stock on anyone's radar?




Bought some yesterday and saw a bit of sporadic action today, at one point it was up more than 25%. Director just bought some more ($48k worth) today at over 30 cents. 2 good prospects for the price of $7M is quite reasonable. The management salary is also ridiculous low, 109k for 5 people, performance options are all above current sp. Well I won't complain.


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## Bushman (19 December 2007)

Interesting recent announcement - 14/12 - MD appointed. 

HDG recently appointed new MD Mark Major. 

Following this information, the company provided the following update on the Moliagul molybdenum project - 
1. Due dilligence programme has now been completed on 'major moly prospect'.
2. Drillling program was 3 diamond drill holes over 446m. 
3. Drilling is to confirm grade/structural orientation of Mo mineralisation identified by previous explorers. 
4. Results will be received in January; thus option (to earn 90% in project) has been extended to 31 January 2008. 

As a quick recap - HDG: 
- current mkt cap $13m (44m shares at 29 cps). 
- cash approx $6m.
- Significant drill intercepts included:
o MM-06 192m @ 682ppm (EOH in mineralization)
including:
• 49 m @ 0.11%
• 14 m @ 0.11%
o PMM01 36 m @ 0.16%
o H 3 D 15.3 m @ 0.19%
o PMM01 10 m @ 0.17%
o MM-001 10 m @ 0.12%

So we will know by end of January whether these grades have been repeated. Note the original drill program was 4 diamong drill holes for 600m so they have scaled back the due dilligence drilling. Wonder why? Either they found what they were looking for or ran out of time (dd was meant to be finalised by November/December).


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## Bushman (28 April 2008)

HDG now has a market cap = cash blance ($5m). Market obvioulsy does not rate its exploration ground. Shocking marketing and PR by mgt. However the option has also been taken on the moly project and the Swedish uranium project is still on the books. 

SP has been smashed over the last 6 months due to the stock being very illiquid.

Maybe I am silly about this one but it is starting to get an exploration pipeline together and it has cash in the bank. Back on my watchlist...


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## springhill (28 April 2010)

Time to revive the HDG thread.

http://www.asx.com.au/asxpdf/20100427/pdf/31pyz4zxjfjnhc.pdf

Hodges announced yesterday the completion of their Ã–stra JÃ¤rntjÃ¤rnbÃ¤cken bedrock uranium target in Sweden. Results expected to be released by June 2010.

Very tight capital structure with 47,354,029 FPO shares and 16,250,000 unlisted options with the next batch of options becoming available in July 2010 with strike prices ranging from 35-60 cents.
ATM has $4.2 million dollars cash at hand giving a current cash value per share of 8.8 cents.

Worth keeping an eye on.
Any other holders/watchers here?


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## springhill (22 July 2010)

Since last post on Hodges, there have been a few interesting, but not earth shattering announcements.

5 of the last 7 announcements have been director buying on market. Not in massive amounts, but this stock is thinnly traded at best. They seem confident purchasing around the 13c mark.
Director Nathan McMahon has an indirect interest of around 5.5m shares.

One of the other anns was the purchase of a gold project in Ghana, within the Ashanti Gold Belt, approx 1.5km down strike from Adamus' 1.1moz Salman deposit. Other deposits in the region include; Konongo (5.6Moz), Obuasi (42Moz), Bogosu (3.3Moz) and Presta (10.7Moz).
http://www.asx.com.au/asxpdf/20100511/pdf/31q8qxhjwtqbbs.pdf

The next ann confirmed the presence of uranium in their Ã–stra JÃ¤rntjÃ¤rnbÃ¤cken project in Sweden, with best results of 17m @ 0.1% U3O8  from 63m.
Further results are expected this month, or next.
http://www.asx.com.au/asxpdf/20100601/pdf/31qml6y136q715.pdf

Cash on hand at the moment is worth roughly 9cps, last trade was at 15c.

No drilling program announced for the Ghana project, but will be looking for a potential timeframe in the coming quarterly.

Disc i'm holding @ 12c.


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## prawn_86 (22 July 2010)

springhill said:


> Cash on hand at the moment is worth roughly 9cps, last trade was at 15c.




Any idea as to how they are planning to spend the cash? A lot of the time small explorers will just whittle it away, so unless they spend it well then it may not be of any benefit...


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## springhill (22 July 2010)

prawn_86 said:


> Any idea as to how they are planning to spend the cash? A lot of the time small explorers will just whittle it away, so unless they spend it well then it may not be of any benefit...




I would assume we will have to wait for the next quarterly prawn for any further info, but if their excitement at attaining the Ghana project is justified then i assume there will be some action in that area. Further drilling at Swedish project not expected to continue until *their* winter.


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## springhill (21 September 2010)

HDG had a nice little breakout today (+30%) on low volume. No announcement out, but i'll bet London to a brick there is a drilling program in the Ashanti Gold Belt, Ghana, soon to be declared. My thoughts only, can't think of any other reason why it would move at this point.


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## springhill (3 March 2011)

HDG has gone into trading halt today on the back of an acquisition transaction
http://www.asx.com.au/asxpdf/20110303/pdf/41x6jy31sknw44.pdf

Possibly in Africa if you read their latest quarterly under New Project Activities.
http://www.asx.com.au/asxpdf/20110131/pdf/41wgspb1vm8cz6.pdf

Chart looks good to me.
Holding.


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## springhill (8 March 2011)

HDG announced yesterday, they are adding coal to their portfolio. They have reached an agreement to earn up to 99% of the Morupule South Coal Prospect in Botswana, targetting a potential resource of 1.4 billion tonnes coal.

More info here.
http://www.asx.com.au/asxpdf/20110307/pdf/41x8kc338lb9k5.pdf


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## 5haretrader (18 March 2011)

Hi Sprinhill, you seem to have been an avid follower of HDG over the years. Do you have a HotCopper account by any chance? You seem to know your way around this company quite well, and your thoughts on that forum would be really welcome given how much potential these two prospects add to Hodges as a whole. I've posted an email from management and a few comparisons to AFR over there. Could be worthwhile having a look 

I jumped in big time with an average price of 28cents after the updated announcements this week. It's now a long term hold for me, and occupies the 4th largest weighting in my portfolio. This one should fly during 2011 in my opinion.


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## springhill (19 March 2011)

5haretrader said:


> Hi Sprinhill, you seem to have been an avid follower of HDG over the years. Do you have a HotCopper account by any chance? You seem to know your way around this company quite well, and your thoughts on that forum would be really welcome given how much potential these two prospects add to Hodges as a whole. I've posted an email from management and a few comparisons to AFR over there. Could be worthwhile having a look
> 
> I jumped in big time with an average price of 28cents after the updated announcements this week. It's now a long term hold for me, and occupies the 4th largest weighting in my portfolio. This one should fly during 2011 in my opinion.




Gday 5haretrader, sorry to say i am not a member on HC (signed up a couple of years ago, but there was too much chatter and 'blue sky' posting), maybe it's different now?
Anyways, yes i am a fan of HDG in terms of structure, project acquisition and the fact they don't p!ss money up against the wall or deal out shares like cards.
Definatly due to latest SP increases, this is moving more to mid-long term position but still have exciting drill programs to come.

Are you willing to post your HC thoughts here? I'd be interested to read them.
Cheers.


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## youngone (20 March 2011)

Hi Spring.

Thank you for the updates. I wouldnt have known about the little gem, if it werent for your updates. Keep it up


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## 5haretrader (20 March 2011)

Sure thing springhill. I'll copy over my posts from HC to this date that I feel could be of interest.

Here's what I was thinking based on the original announcement over a week ago. I liked what I saw and I took a small position in the company based on some rough comparisons between HDG and AFR.

_Posted March 10

Here are some comparisons with AFR...

*AFR's "raw coal"*Calorific Value: 19MJ/tonne
Ash Content: 27%
Seam Width: 8.8m
Sulphur: 1.8%

*HDG's "raw coal"*Calorific Value: 19.7MJ/tonne
Ash Content: 33%
Seam Width: 7.8m
Sulphur: 0.86%​So as you can see, it's fairly similar, and while everyone seems to be asking about the ash content, let us not forget that HDG's coal has less than half the sulphur than what AFR have their hands on.

Now let's look at what AFR and HDG are hoping to beneficate their product into...

AFR's "beneficated coal"
Calorific Value: 22MJ/tonne
Ash Content: 18%
Sulphur: 0.35%
HDG's "beneficated coal" - Moruple Power Plant stats
Calorific Value: 23MJ/tonne
Ash Content: 22%
Sulphur: >1%​AFR have a JORC resource due in April, HDG have a JORC resource due "within 6 months". HDG have a wash plant right on their front door, and while AFR have a superior stripping ratio which will make for lower operating costs, I cannot see how HDG is trading with a market cap of $14M while AFR is up there at over $200M.

Looks way to cheap doesn't it... 
_

I then went quiet for a few days until the stock went back into a trading halt pending a re-release of the announcement. Supposedly some of the values weren't JORC complient and they had to be omitted, but low and be hold, we got an inferred resource out of the correction!

_Posted March 15

*Prospect One*
414Mt JORC inferred resource
5.5m seams
21MJ/kg
30% Ash
1200Mt resource target

HDG will aqcuire 75% of the above by expending $0.5M, and spending $3M on drill costs over the next 24months, of which $1M must be spent in the first year.

HDG has the option to acquire a further 24% stake (net 99%) if it pays 10c for each tonne of measured (not inferred) resources and funds another $2M worth of exploration/development costs over a two year period.

In my opinion, this fee on the measured resource will be around $20M-$30M depending on the measured resource at the time. In two years, it will probably stand at around the 200Mt-300Mt JORC measured figure.

Total costs of approximately $3.5M for a 75% stake, and about $30M for a 99% stake.

*Prospect Two*
2.5m to 23.7m seams
~22.5MJ/kg
~28% Ash
1300Mt resource target

HDG pays an upfront fee of $0.02M for exlusivity to the deal until May 13. On election to take up the prospect, HDG can spend up to a threshold of $7M on exploration costs for the next 18 months.

At the end of this period (November 2012), HDG will pay between $6M and $9M dending on the JORC measured (not inferred) resource at the time.

Once this payment has been finalised, the remaining difference between the costs on the second prospect and $70M will be paid by HDG to acquire 90% of this second prospect, and 90% of any remaining interests in the company.

Total costs of $70M for a 90% stake.

*Conclusion*
At first this deal sounds confusing, but I can guarentee that this is an opportunity of a lifetime for this company.

HDG can expend $3.5M for a 75% stake at the first prospect which should itself have an inferred resource of around 1Bt in 6 months time. We can also expend a further 10cents for every JORC measured resource tonne of coal at the prospect, and pick up a lazy 99% stake in the prospect!

Furthermore, between $13M and $16M will be spent at the second prospect for exploration up until November 2012. At this time, any balance between the funds spent on the second prospect so far will be handed over to Jaguar to complete a $70M transaction. This would hand us a 90% stake in the second prospect!

Long story short, this is an absolute no brainer. The grades are comparitive with AFR who have gone on a massive run of recent times, and we have tonnages of coal coming out of our ears.

Think about this for a minute. Prospect one alone has a JORC inferred resource of 400Mt, and we can have 300Mt of it for ourselves if we pay a measly $3.5M, and we have just opened up a $3M debt facility to help this cause.

Thermal coal companies normally attribute an EV of 10cents-15cents per tonne of JORC inferred resource. That would value HDG right now at $30M of 60cents per share. If we infer up 1Bt of the stuff, then I see no reason for HDG to be trading under $1 in 6 months time. Infact I will go as far to say that this has such massive potential here that this will be a 10bagger in 12 months in my opinion._

On the back of this news I tripled my position in the company. I then went on to email the managing director of Hodges to see what he was thinking. His response spoke wonders!!

Here is his response...

_Dear Charles,

Firstly let me welcome you to Hodges. 

To answer your question, there have been minimal wash tests completed thus far; however, those that have been done have shown we can get Grade A export coal at viable yields. The percentage and yields are the critical thing over the entire deposit, not just a few holes. It is true we do have similar (if not better) raw coal qualities as many of the other companies which are in the area; and we do expect to get similar results, but until we do the work, these are all just assumptions. 

Hodges is a tightly held company that has been flying below the radar for years. It will take time for the news to flow out into the broader market, but we will be working hard to increase our profile once we complete the due diligence on both projects. We will definitely take up the options if there are no issues with the titles/companies and technical review. Only time will tell on this.

You mention AFR. They are at least a year ahead of us, and if you look further out we have CIC Energy at the forefront of successful Botswana coal companies. I too believe we are undervalued at the moment. If we take the option we will be aggressively exploring and converting the targets into JORC resources, as well as initiating mining studies. It could be a very exciting 12 months for all our shareholders.

I hope you find this email to your satisfaction.

Kind regards,

MARK MAJOR 
Managing Director
HODGES RESOURCES LIMITED

Level 2 / 38 Richardson Street, West Perth, WA, 6005 
Tel: +61 8 93226412 | Fax: +61 8 93226398 | Mbl: 0447954112
_

Having heard Grade A coal spoken from the man himself, I put up a comparison of the various coal grades that are in the market right now...

_For those who are wondering, here are the common paramaters used in depicting export grades.

Obviously you have to wash and beneficate the raw coal to get it up to these standards.

Grade A (Newcastle) coal has a calorific value of 27.5MJ/kg, and an ash content of no higher than 19.5%. This currently sells at $130/tonne. Most thermal coal companies would make profit margins at these prices over $60/tonne.

Grade B (Richards Bay) coal has a calorific value of 26MJ/kg and an ash content of no higher than 24%. This currently sells at $118/tonne. Most thermal coal companies would make profit margins at these prices over $45/tonne.

Grade C coal has a calorific value of 23.5MJ/kg and an ash content of no higher than 29%. I believe this is sold domestically moreso than in export, and most African based companies make margins of about $7/tonne.

Most importantly, we should be able to look forward to at least some export sales down the track if Mark's sentiments are anything to go by. Obviously a very long way to go before that, but it doesn't hurt to look ahead!
_

On Friday, I did a bit of TA on the stock. A close above 38cents should leave little resistance up to 48.5cents. We also have that gap at 50cents to fill on the way up.







That's pretty much it for now. But I am sure that this stock will be keenly followed throughout 2011.

If you have a change of heart about HC, your thoughts over there will be warmly welcomed. You don't even need to worry about the other forums on there if it is too 'optimistic' for your liking.


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## springhill (21 March 2011)

5haretrader, i'm sure there is a thread here for 'Post of the Year', that will be my nomination without hesitation. Excellent work, and i'm sure very time consuming. Worth every second.
Congrats mate! Fascinating reading.
Only wish i could reach that level of detail.

HDG continuing to reward it's shareholders today


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## springhill (25 March 2011)

HDG directors buying shares on-market lately, it's good to see these boys putting their money where their mouth is.

Mullens
http://www.asx.com.au/asxpdf/20110324/pdf/41xn3w9qdsgrm0.pdf
http://www.asx.com.au/asxpdf/20110318/pdf/41xjfljwrtlc3r.pdf

Mcmahon
http://www.asx.com.au/asxpdf/20110324/pdf/41xmsf8s53ypwz.pdf

Major
http://www.asx.com.au/asxpdf/20110318/pdf/41xjfjy18jwknx.pdf


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## springhill (1 April 2011)

HDG proposed capital raising will add another $8m to the balance to fund coal exploration in Botswana.
7 million allowed @ 32cps and another 18 millions shares @32c pending shareholder approval.

This from proactiveinvestors, which i find a good source of information.

http://www.proactiveinvestors.com.a...m-for-coal-exploration-in-botswana-15129.html


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## springhill (12 April 2011)

Company presentation released by HDG.
Interesting side note to see that Coal-to-Liquids is in the mix in the future plans.

http://www.asx.com.au/asxpdf/20110412/pdf/41xzt3hbvvr7j4.pdf


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## springhill (22 April 2011)

McMahon continuing to buy shares on-market.
http://www.asx.com.au/asxpdf/20110421/pdf/41y6s3l0dlqstq.pdf


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## springhill (13 May 2011)

Resource Stocks Magazine have published a company report on HDG, titled "A MULTI-BILLION TONNE COAL PLAYER"

Link to PDF format here.
http://www.resourcestocks.net/profi...startDownload.asp?File=Hodges.pdf&Size=374160


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## springhill (13 May 2011)

Hodges has announced that it has exercised it’s option under an agreement with shareholders of Jaquar Ventures Ltd, for the acquisition of up to 90% of theequity of Jaquar. Jaquar owns 100% of the Moiyabana Coal project.

http://www.asx.com.au/asxpdf/20110513/pdf/41yn22k232mzsy.pdf


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## springhill (25 May 2011)

Hodges also exercises option for up to 99% interest in Morupule South.

http://www.asx.com.au/asxpdf/20110525/pdf/41yv88jgr2k178.pdf

Plus McMahon continues to buy on-market.

http://www.asx.com.au/asxpdf/20110524/pdf/41ytpmhpqzr39b.pdf


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## springhill (7 June 2011)

HDG has announced today an increase in exploration target from 800Mt-1300Mt to 1400Mt-1650Mt for the Moiyabana Project, Botswana.

http://www.asx.com.au/asxpdf/20110607/pdf/41z2v4ld7k9lg2.pdf


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## springhill (15 June 2011)

Board Room Radio interview with Mark Major begins in 16 minutes.
http://www.brr.com.au/event/81698/h...an-coal-industry-mark-major-managing-director


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## springhill (15 June 2011)

Hodges is pleased to announce that resource definition drilling has commenced at the company’s Moiyabana Coal Project (“Moiyabana” (PL93/2008 and PL94/2007)). Moiyabana, with a recently upgraded range of 1,400Mt-1,650Mt of in situ coal within
the Exploration Target, is Hodges’ flagship coal project located in central eastern Botswana.

With Board approval received for the Company’ largest drill campaign to date, the resource drilling program is planned to consist of 125 drill holes for a total of 14,000 meters and be completed over three consecutive phases.

Phase One drilling will initially focus on the definition of a maiden JORC compliant inferred resource over the central southern target area while subsequent drilling phases will be aimed at both upgrading existing resource categories and defining the extent and continuity of new resource areas.
During the course of the drill program average and maximum hole depths have been modelled to be in the order of 125 meters and 180 meters respectively. It is expected that Phase One drilling will be completed within 2 months while the greater program will be completed over a 6 month period.

Currently one reverse circulation and two diamond drill rigs are present at site however, an additional two diamond drill rigs are expected to arrive at site within approximately one month.

http://www.asx.com.au/asxpdf/20110615/pdf/41z7443bky8qqr.pdf


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## springhill (16 August 2011)

Nathan McMahon continuing to buy shares on market over the last couple of months.
$206,000 purchased in this period, plus what has been bought in previous posts.

8th August
http://www.asx.com.au/asxpdf/20110815/pdf/420ddqlwzr83gd.pdf
1st & 3rd August
http://www.asx.com.au/asxpdf/20110804/pdf/4206mnrvm00ngt.pdf
18th & 19th July
http://www.asx.com.au/asxpdf/20110725/pdf/41zydss0plsk0n.pdf
8th June
http://www.asx.com.au/asxpdf/20110624/pdf/41zdsp39nympnc.pdf


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## springhill (19 June 2012)

Sold my last parcel of HDG back in March, so it had slipped to the back of a secondary watchlist, but upon looking again was suprised to see it down to 15.5c.
Apparently after all this time they are struggling to announce a JORC resource, through lab delays, not a fault of their own i believe. A JORC should see this re-rated?
This could be due for a re-entry soon if it comes back to my original purchase price of 12c.

Nathan McMahon has continued to purchase on market right up until the 29th of last month (May). He either truly believes in HDG, or wipes his @ss with $100 notes!

Still a tight structure with 78m shares on issue and after this quarterly they should have around $1.6m in the bank.

For those interested in overseas coal, worth reviewing this thread and their announcements over the last 12 months.


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## springhill (20 June 2012)

Seems it was a good time to update HDG, they have entered a late trading halt. JORC could be imminent.

http://www.asx.com.au/asxpdf/20120620/pdf/426yg7pgshdzp9.pdf


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## springhill (25 June 2012)

http://www.asx.com.au/asxpdf/20120625/pdf/4270m01gzdz0yg.pdf

HDG has posted a JORC inferred at Moruple South of 2.3Bt, a whopping 485% above expectations.

Pre GFC coal was being valued at roughly 40c per tonne in situ. Even at 10c tonne in situ thats still $230m valuation without being touched. Not bad for a company with a market cap of $13m


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## Vader (25 June 2012)

springhill said:


> HDG has posted a JORC inferred at Moruple South of 2.3Bt, a whopping 485% above expectations.




It's important to note that the 485% reflects the growth from their initial statement (May 2011), the actual upgrade from the last figure reported in their quarterly report is only about a 44% increase... but, that's a 44% increase on what was already a huge number... it's now a very huge number 

It also needs pointing out that they have still got a very long way to go before the resource gets to any stage nearing production (like 2-4 years probably), so there is a lot of water yet to go under the bridge.

...but, I do like the the fact that a lot of it is fairly close to the surface and the energy values (and low sulphur/ash) look as though they are going to be pretty good (more definition around those numbers should be coming in the next six months hopefully). No debt, enough money for another year or two, only 78m shares on issue... definitely worth keeping an eye on IMO, I grabbed a small amount at 15.5c today, but I wouldn't be surprised if it drops quite a bit lower in the next couple of days as the buy orders seemed to dry up quite quickly by the end of the day, which I'm sure they would have been a bit disappointed over (was bit of a weird day though).


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## springhill (26 June 2012)

Vader said:


> It's important to note that the 485% reflects the growth from their initial statement (May 2011), the actual upgrade from the last figure reported in their quarterly report is only about a 44% increase... but, that's a 44% increase on what was already a huge number... it's now a very huge number




Well spotted Vader.
Never let the truth get in the way of a good announcement! 




Vader said:


> It also needs pointing out that they have still got a very long way to go before the resource gets to any stage nearing production (like 2-4 years probably), so there is a lot of water yet to go under the bridge.




I can't for the life of me find it, but i distinctly remember reading some time back HDG targeting 2015 for production.


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## springhill (27 June 2012)

Nathan McMahon continuing to purchase HDG.
http://www.asx.com.au/asxpdf/20120627/pdf/42728xtxr59y3m.pdf


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## springhill (28 June 2012)

HDG's Botswana Resource Conference Presentation.
http://www.asx.com.au/asxpdf/20120627/pdf/4272cqyqq83g2j.pdf

Production target for Moruple South is mid 2014 at best, though in the presentation there is a question mark over engineering and construction timing, so mid 2014 is a best case scenario.


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## springhill (29 June 2012)

McMahon buying on market again.
http://www.asx.com.au/asxpdf/20120628/pdf/4273d1hqpry647.pdf

If you scroll back through this thread, have you ever seen so many director buying notices from one guy?


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## aroe (2 July 2012)

Hi Springhill

I see you have listed HDG in your low cap / low liquidity thread too

I have also been watching HDG for the past few weeks, and have been thinking about picking up a small parcel.

However, the 2.3BT they've come across at Morupule South won't be coming out of the ground for years. Is your intention to buy now and hold on for a long while?

Cheers.


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## springhill (2 July 2012)

aroe said:


> Hi Springhill
> 
> I see you have listed HDG in your low cap / low liquidity thread too
> 
> ...




Hi aroe, 
Such is the nature of dealing with low cap/ low liquidity, none will be in production for years, but that is not really my aim - to hold til production. There are always many SP slumps between discovery and production, it's up to you when you feel your sell price is right.
My take on it is pick the right undiscovered, little known stock and let its own results, bring it to prominence.
The recent dips below 15c are super attractive (IMO!) and obviously it is to McMahon aswell.
I have one or 2 infront of HDG atm but a price closer to 10c would have my trigger finger itchy.
It's your money mate, look after it and research to the point you have faith that stock is the best place to put your cash

P.s. don't forget to take my signature below into account


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## aroe (2 July 2012)

Thanks mate.

I appreciate your input to these forums, it is very interesting indeed.

I think I will keep an eye on HDG for the time, I agree though, that the price is getting very attractive.

Cheers.


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## springhill (2 July 2012)

aroe said:


> Thanks mate.
> 
> I appreciate your input to these forums, it is very interesting indeed.
> 
> ...




Thanks for the kind words.
Please, if you feel inclined, keep the thread posted with your thoughts and actions along the way.


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## aroe (2 July 2012)

Wouldnt you know it.. HDG up 10%


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## Vader (2 July 2012)

aroe said:


> Wouldnt you know it.. HDG up 10%




It's more a factor of low liquidity than anything else - that 16c sell order has been next in line for about a week now (but it does signal someone buying at the spread rather than selling into the spread - which is where the volume has traded at for the last few days).

...and also another announcement today that McMahon bout another $35k worth of shares last week (his purchases are getting bigger).


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## springhill (2 July 2012)

Vader said:


> It's more a factor of low liquidity than anything else - that 16c sell order has been next in line for about a week now (but it does signal someone buying at the spread rather than selling into the spread - which is where the volume has traded at for the last few days).
> 
> ...and also another announcement today that McMahon bout another $35k worth of shares last week (his purchases are getting bigger).




McMahon's latest buy notice.
http://www.asx.com.au/asxpdf/20120702/pdf/4275pm04wmh0bp.pdf


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## springhill (10 July 2012)

[h=1]Hodges Resources advances on Morupule South Coal development[/h]Hodges Resources Ltd (ASX: HDG) has advised that the Company is now focusing on its mining and power integration economic viability studies designed to establish the viability going forward of the Morupule South project in Botswana. This move takes Hodges one step closer to the decision to develop the coal mine, and follows the completion of the first phase of infill drilling at the Central Block of the Morupule South project.

*Highlights:*


Morupule South project in Botswana moves a step closer to production decision with conceptual studies on a variable staged mining approach with associated integrated power projects.
Focus on areas amenable to open pit operations; Central, West and East blocks.
Currently located in Botswana’s only power infrastructure hub with potential for low cost mining expected.
Significant resource identified with premium domestic power generation raw product and benefit of greater product beneficiation.
Measured and Indicated JORC Resources anticipated in late 2012.
The Company aims to complete concept studies and commence prefeasibility studies on various mine and integrated power projects before the end of the year.
Hodges Managing Director Mark Major said: “This is another positive step for the Company as it moves towards a production scenario
_*Click here to view the full announcement*_


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## Vader (16 July 2012)

Some reasonable volume in HDG today... not sure whether it was just a couple of people selling that moved the price down (as can be the case with infrequently traded shares) or whether a slight momentary panic set in for a couple of traders, but it dropped quite quickly on only a couple of trades - got as low as 11c (-26%) today before one of the directors (McMahon again), added some more shares to his kitty and propped the price back up a bit so it's now only down 6% on the day.

...it's usually a lot more quiet than that


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## burglar (16 July 2012)

Vader said:


> ...it's usually a lot more quiet than that




I'm a visual person!


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## springhill (23 July 2012)

McMahon buying again.
http://www.asx.com.au/asxpdf/20120723/pdf/427jtxsjlxb02x.pdf

*Hodges to Expand Coal Presence in Botswana*

Hodges announce that it has entered into a joint venture agreement with Meerkat Energy Ltd (“Meerkat”), for the acquisition of up to 80% of Meerkat’s two main coal prospects in Botswana.
The two coal prospecting licences are located in the Kweneng and Central Districts. The Lokgwabe prospect (PL168/2010) covers 501.6 km² and is located adjacent to the 4.2Bt Takatokwane Project (Nimrodel Resources Ltd (*)). 
The second prospect (PL604/2009) is located near Rakops and covers a total area of 932km². It is strategically placed to provide an energy source to the rapidly developing copper industry in Botswana.
Managing Director Mark Major said the Company believes that Botswana will be the next major African coal provider and will play an integral role in catering to southern Africa and the world’s burgeoning power needs, with the country already being on the radar of industrial groups out of India and China.


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## Vader (15 August 2012)

Massive investor presentation released today updating current activities and plans for the next few years as they get serious about developing the Morupule South project.

http://www.asx.com.au/asxpdf/20120815/pdf/42819gn9mmgpw0.pdf

Well worth a read if you're interested in these guys - or in the growing interest in Botswana coal resources in general. IMO these guys are sitting on a fantastic coal resource, shares are tightly held and only 80m on issue.

The next activity on their agenda (short-term) is to upgrade a small parcel of their resource to 'measured' status. They are initially aiming for approx 100 million tonnes in the small area being targeted - have finished drilling, results expected in October. Further drilling to increase the measured resource will also recommence in October.

They are also looking to secure a strategic partner in the near term.

(...and yes, I hold these shares and will continue to do so for the foreseeable future)


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## springhill (27 August 2012)

*Hodges to focus on Morupule South Coal Project in Botswana.*

• Hodges Board will not be exercising its option to increase its holding in the Moiyabana project.
• Maiden 768 Million tonne resource for Moiyabana Coal Project:
 358 Million tonne Indicated Resource within the depths amenable to Open Cut mining and
 410 Million tonne Inferred Resource.
• An additonal 614 - 897 Million tonnes of inventory Coal has also been estimated.
• Mining strip ratios range typically from 1.5 to 3.

Hodges Resources announced the maiden resource statement for the Moiyabana Coal Project in Botswana (as per JORC Code and guidelines).
Hodges has the right to earn up to a 90% stake in the equity of Jaquar. Jaquar owns 100% of the Moiyabana coal prospecting licences. However, following the completion of the recent drill campaign at Moiyabana, the Hodges board has decided that it will not exercise its first option in October 2012. It will seek to reclaim its expenditure in the project via an allocation of Jaquar shares and has also requested a repayment of the refundable $US3 million option fee originally paid to existing Jaquar shareholders.
The decision not to take up the first option means that Hodges is not required to pay the balance of the first option fee (up to $US9 million) in October this year. The Company is now not required to pay any further funds (approximately $US58 million) for the second option fee in July 2013.
Hodges Managing Director Mark Major said the confirmation of a maiden resource for the project was pleasing for the Company however, given the solid progress and recent developments at Hodges flagship Morupule South Coal Project, the board had decided not to increase its stake in the Moiyabana project.


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## burglar (11 February 2013)

springhill said:


> *Hodges to focus on Morupule South Coal Project in Botswana.*...



Latest report well received, up 62% today!

Positive Morupule South Scoping & Conceptual Studies:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01380991





Disc. Don't hold.


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## Vader (11 February 2013)

burglar said:


> Latest report well received, up 62% today!
> 
> Positive Morupule South Scoping & Conceptual Studies:
> 
> ...




Yes, very positive scoping study out today - definitely a first class coal deposit (big thick seams, good quality, close to surface, huge tonnages)... the biggest challenges:

1. Trying to get back $3m they are owed from another project... so far the other company hasn't ponied up the cash, legal action starting (this is a bit of a distraction really - see next point - but would sort things out for the next 12 months or so)

2. $3m is the least of their worries... they need to bring on board a financial partner (preferably a big Indian or Chinese power company who will be interested in completing the takeover at a nice price at some point in the future)... scoping study lists stage 1, contractor run op, capital costs @ $56m (cheapest option), so at some point (perhaps later this year, although still a few more milestones to reach first) they are going to need to do some serious cap raising.

3. The biggest problem with attracting a big hungry Indian or Chinese company is that Botswana need to sort out their rail infrastructure in order to be able to reliably export coal... that's not something that looks like it'll be resolved in the next couple of years, but odds are it'll happen eventually... one of the big Indian companies recently took over a similar company (Sept 2012 - don't have the name handy, but google it if you're researching further) that was a bit further along than HDG, but similar orebodies.

HDG are my biggest holding at the moment (bought some more on the recent drop, av buy price 0.105), so had a bit of fun today watching the portfolio jump substantially... I wouldn't be surprised if it pulls back to around 10c in the next couple of days though, wasn't a huge amount of volume there today, but tomorrow could be interesting once a few more analysts see the spike and read the scoping study report.


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