HLX - Helix Resources

[YOUNG_TRADER]

Ok guys have been wanting to post about HLX for awhile but haven't as its been in a downtrend, well I think its bottoming out and will re-rate soon,

Before I begin I should point out that what I saw with JMS 7c -20c and GOP 9c - 20c (Check the threads and the charts) I see with HLX so if you interested in a 100% + upside stock before considering Fundamentals read on,

HLX has 100m shares and 25m 14c 31/3/07 opeis,

@ current prices mkt cap is $9m
@ 20c (my inital target) mkt cap is $25m (still not demandng)

HLX hax 3 main projects

Tunkillia S.A.
This is the jewel in the crwon, discovered back in the late 90's this Gold deposit was set to become the next Olympic Dam, promptly rocketing HLX from the few cents to $2+ (like AUM/CDU) however further drilling revealed it wasn't a multi billion dollar deposit, this combined with lower gold price in 2000 led to project being put on back burner,

JORC stands at 10.5Mt@2.2g/t = 730k oz's Au

Now whats changed is that HLX farmed Minotaur (MEP) into Tunkillia, MEP is earning 51% by sole funding exploration and HLX is free carried until a decsion to mine, MEP are solid operators, they discovered OXR's Prominent Hill and are some of the best mining tech's in the business, Tunkillia is MEP's main focus as well,

So HLX holds a 49% free carried interest,
49% of 730k oz's Au @ EV of $25 oz (Avg Mkt cap $ per Ounce) = $9m or HLX's current mkt cap

Clearly MEP like what they see and have stated that they the hurdle to get the project going is a minimum JORC of 10Mt@3g/t so there trying to find some higher grade offshoots, they would do a 2mtpa operation = 200k oz's Au for 5yrs


Glenburgh Somewhere in W.A.
100% HLX, JORC 1.1Mt@3.1g/t = 110,000 Oz's Au, they're targeting a minimum 500k oz resource for a stand alone project

Lake Everard S.A. part of Tunkillia area
HLX 49% TOE (Toro) 51% Searching for uranium


I'd say that in the next few months MEP will release a new resource estimate for Tunkillia and take steps to get the project going, note that OXR (Oxiana) has an option to buy 24% of HLX's stake, reducing HLX to a 25% free carried interest.

Very undervalued, has about $2m in cash but not spending much on exploring as main project is free carried exploration up to a decision to mine

I expect it to follow the same path as GOP and JMS,

Enjoy

 

[barney]

Hi YT. Its a while since I looked at HLX but didn't they spin off all their Uranium activities into a separate Co.(IPO listed at around 20 cents; same as HLX sp) ?? I think that was when their sp started a steady decline. Does the main Co. derive any benefit from any future U discoveries? Cheers.

 

[NettAssets]

If Ive got the story right they sold their WA Uranium rights for shares in Crusader Minerals

Spun of their Platinum Assets into Platina Resources Ltd - don't know how much they still hold.

JV of the exploration of SA Uranium With Toro Energy for 51%

Minatour doing the Tunkillia job for SFA

they still have 100 % of WA Gold prospect near Carnarvon.

Have some Diamond EPs in the Kimberlies in WA
no activity here yet i think.

 

[YOUNG_TRADER]

I think it will be quite for a bit,

But Minotaur will get Tunkillia off the ground, so good 6 month punt IMO, (I only hold opies so not too much outlay)

 

[maverick11]

Announced a plaint and objection yesterday against one of their leases.

 

[maverick11]

up a fair bit today on no news?

 

[maverick11]

ok...up 20%!! Does anyone know why? insiders?

 

[Sodapop]

ok...up 20%!! Does anyone know why? insiders?

On a volume of 262,000 - i wouldn`t lose sleep... can calm down... if millions start changing hands - then you could start losing sleep...

 

[YOUNG_TRADER]

On a volume of 262,000 - i wouldn`t lose sleep... can calm down... if millions start changing hands - then you could start losing sleep...

:iagree: WOULD WANT TO SEE A FEW MILLION TRADE + Millions in the buy depth, so take it easy for now Maverick

 

[yogi-in-oz]

Hi folks,

HLX .....

Most certainly cycles DO repeat, so here's
some likely key dates for HLX, over the
next month or two:

20-23102006 ..... negative cycle

27-30102006 ..... minor news??

07-10112006 ..... a big rally here???

14112006 ..... positive finances(??)

20112006 ..... positive light on HLX

01122006 ..... a short rally here??

05122006 ..... last of positive news
in this set of cycles

happy trading

yogi

 

[YOUNG_TRADER]

with 100m shares currently HLX is capped at about $8m

What a joke! MEP are solid operators, they wouldn't focus their exploration efforts on Tunkillia unless there was alot of value in the ground, they have continued to extend/outline the resource,

I reckon as with Prominent Hill (and as this agreement allows) MEP which is earning a 51% will introduce OXR (Oxiana) as they have an option to buy 24% of HLX's stake, reducing HLX to a 25% free carried interest.

Now what would big bad multi billion $ mkt cap OXR be willing to pay for HLX's stake?

 

[Sean K]

Looks like it found a bottom at @0.065 I reckon.

Good ann today pushing it up 8%.

Bit of resistance at $0.088-0.09 ish.

Looks good, although I do prefer goldies with potential for more than 2m oz. Do you reckon they could get there with these results YT?

 

[YOUNG_TRADER]

Looks like it found a bottom at @0.065 I reckon.

Good ann today pushing it up 8%.

Bit of resistance at $0.088-0.09 ish.

Looks good, although I do prefer goldies with potential for more than 2m oz. Do you reckon they could get there with these results YT?

Hey Sean,

Good to have you back,

Not sure, but given the fact that MEP is sole funding the project = 0% risk to HLX, also as I have said MEP are solid operators and they wouldn't piss fart around with any old project, I think they must have liked what they saw and continue to like what they see, 1moz resource is nothing to scoff at especially when the company that holds 50% of it (HLX) is trading at less than $9m = EV of $20oz not including other gold and cash assets, probably closer to $12-$15 oz,

All in all I reckon its worth a small punt, at worst it'll have a JMS/GOP type run

 

[YOUNG_TRADER]

Don't mean to go on and on about this one,

But if you have a look at MEP's presentation today, the first project they talk about is their Tunkillia Gold project, in past presentations Tunkillia has always been the focus,

SP looks like its heading back to 10c

 

[moses]

I ran about 25 spec stocks through the Neilson Smart Money Indicator today and HLX stood out as the *only* stock that was consistently being bought by smart money and ignored by speculators. Most significantly the recent price rise is purely driven by smart money. So...I'm tipping that this stock will rocket when the scumbag speculators like us discover it. :

 

[Sean K]

I ran about 25 spec stocks through the Neilson Smart Money Indicator today and HLX stood out as the *only* stock that was consistently being bought by smart money and ignored by speculators. Most significantly the recent price rise is purely driven by smart money. So...I'm tipping that this stock will rocket when the scumbag speculators like us discover it. :

Scumbag? That's a bit too complimentary I reckon.

I'm putting this on close watch Monday for a break up. Looks like it's ripe to shoot up.

Broken that down trend and now looks to be going up though $0.10 which will be very positive. Chart looks better than it did on my last post with MACD looking better, volume OK, plus YT is on it!

 

[moses]

Scumbag? That's a bit too complimentary I reckon.

I'm putting this on close watch Monday for a break up. Looks like it's ripe to shoot up.

Broken that down trend and now looks to be going up though $0.10 which will be very positive. Chart looks better than it did on my last post with MACD looking better, volume OK, plus YT is on it!

So he is, but then, so am I, which pretty well stuffs everything. See the JMS thread, YT reckons he ought to short my picks in future.

 

[Sean K]

So he is, but then, so am I, which pretty well stuffs everything. See the JMS thread, YT reckons he ought to short my picks in future.

LOL. Can't get em all right. YT was a big fan of JMS too. It even looks like it's got off the canvas....

So what else you on Moses, so I can avoid them.

 

[moses]

So what else you on Moses, so I can avoid them.

Why avoid them? Short them instead!

PNN was my stockpick, I see its actually positive atm, but nevermind, it'll fall to sleep like JMS, or bomb like FNT now that Moses points his staff at it.

 

[Sean K]

Why avoid them? Short them instead!

PNN was my stockpick, I see its actually positive atm, but nevermind, it'll fall to sleep like JMS, or bomb like FNT now that Moses points his staff at it.

Thanks mate, I'll have some short positions ready to go on Monday, if I'm conscious. cheers.