HDG - Hodges Resources

[springhill]

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?

 

[aroe]

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.

 

[springhill]

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.

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

 

[aroe]

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.

 

[springhill]

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.

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

 

[aroe]

Wouldnt you know it.. HDG up 10%

 

[Vader]

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).

 

[springhill]

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

 

[springhill]

[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

 

[Vader]

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

 

[burglar]

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

I'm a visual person!

 

[springhill]

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.

 

[Vader]

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)

 

[springhill]

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.

 

[burglar]

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.

 

[Vader]

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.

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.