HLX - Helix Resources

[toc_bat]

jtb

lets assume the Yalleen results a very good, then surely the director buying would be obvious insider trading, and he could obviously get busted, im a novice so havent seen too many of these stories eventuate, but i would think if something really good was afoot, wouldnt it be risky for the director to buy now? if i was a director and i knew something i think id get my friends or exs or distant family to buy for me,

i dunno i just keep finding it hard to be swayed by director buying, maybe theyr ebuying cos the share price is low or to keep the confidence in the company up,

buuuuut then again a director would also know that the co is heading nowhere and has a dim future - so why would he buy? ohh this is just too hard,

 

[jtb]

jtb

lets assume the Yalleen results a very good, then surely the director buying would be obvious insider trading, and he could obviously get busted, im a novice so havent seen too many of these stories eventuate, but i would think if something really good was afoot, wouldnt it be risky for the director to buy now? if i was a director and i knew something i think id get my friends or exs or distant family to buy for me,

i dunno i just keep finding it hard to be swayed by director buying, maybe theyr ebuying cos the share price is low or to keep the confidence in the company up,

buuuuut then again a director would also know that the co is heading nowhere and has a dim future - so why would he buy? ohh this is just too hard,

Hey TOC,

Lab results don't have to be known for indicative information to be available to a company.

Pisolites, which are little ball bearing sized bits of iron that have been rolled around and ground against each other and in my experience occur in channels around protruding structures. Can be a f#ckin nightmare to drill due to their mobility and weight. ie they would rather roll around in the hole and gradually weigh on your drill string then lift out of the hole- read, eventually resist lifting the rods out (bog them) and require drilling fluids to assist the air lift.
The more of a problem this is the more Fe there is in the pisolites (heavy)

As you can assume, if the drilling crew can tell you that you've got thirty meters of pisolites per hole and your hitting them every 50-100 meters over km long lines then theres plenty of iron there.
You've also got a geo there smashing them open on a rock to look at the structure - licking them, dripping acid on them etc to get an idea of the quality.
He then goes home at the end of the day and logs his results, draws some profiles and talks to the boss or faxes his results.

HLX's last activities statement mentioned 100MT among other things for near term results.

@ $3 a ton in ground value thats $90mil or 90c a share (have a look at some other Fe companies with 30MT JORCs).

Considering CUL is being valued only on its Fe prospectivity (imo) @ around 55mil then that equates to >40c per share for HLX.

After seeing Mr Wheeler and our new compatriot (Mr #6 Top 20 CUL holder) buying nearly 10 million shares on market over the last week is enough reason for me to start loading up.

I have felt for some time that HLX will divest the SA gold resource (>400K Oz) to OXR or Minotaur and think the whole SA show may be up for auction now with the OXR/TOE Nova thing going on.

Even at a paltry $25 an Oz for the Au resource and the rest for free thats another $10 mil cash in the warchest.

 

[Sean K]

Hey TOC,

HLX's last activities statement mentioned 100MT among other things for near term results.

@ $3 a ton in ground value thats $90mil or 90c a share (have a look at some other Fe companies with 30MT JORCs).

Cheers jtb, but I think you're underestimating what HLX think of the potential in Yalleen.

Also from their last activity report:

 

[jtb]

Hey Kenna's,

No mate thats all cream on the cake as far as I'm concerned.

Bought again @ 20c today after it looked to hold again

Did you see the 188K order wizz through in the morning (not me) theres been quite a few like that lately whenever a few pop up on the sell side

 

[jtb]

OK fellow conspiracy theorists.
Can anybody help me out in regard to my previous post concerning our new significant shareholder?
Have finally got my ASX link to function again today and after discovering that my #6 CUL shareholder is actually now the #1 CUL shareholder bar this difference-

Wythenshawe #6 CUL holder 2003/4
Wynthenshaw #1 CUL present



Have read all the CUL announcements from 2003 to try and find a 'ceasing to be significant shareholder' notice or similiar and didn't find anything, so I guess its one and the same company?

Anyhoo - considering the # of shares that CUL's executive director Mr Graham Hamilton holds, then HE is Wynthenshaw P/Ltd

So getting around to my HLX related point.

Crunching some numbers today in relation to the fellow API JV peers Red Hill Iron and Cullen Resources I see that HLX is getting very little love atm.

Hoping not to breach any YT copyright-

RHI
40 Million shares @ $2.30 = 92 mil MC
20% of 130MT @ 58.5% Fe = 15.79MT of Fe
EV = $5.82 Fe/T

CUL
475 M shares @ 10.5c = 49.8 mil MC
30% of 68MT @ 56% Fe = 11.4 MT of Fe
EV = $4.37 Fe/T *

*Considering RHI's cash position I think a $1.50 premium is fair enough

Now if we only look @ HLX's 'Kumina Creek' target and the conservatively stated >100 MT @ between 57% and 60% Fe.

HLX
114 M shares @ 21.5c = 24.5 mil MC
30% of 100MT @ 57% Fe = 17.1 MT of Fe
EV = $1.43 Fe/T

If we were to use CUL's implied value per ton then we arrive @ $74,727,000 or 65c per share.

In regard to the Au, if we halve someone like NAV's MC than

Conservatively its gotta be worth another 8 - 10c (as per our friends A1)

Reading between the lines after Mr CUL's recent 9,000,000 FPO gobble. I'm wondering if the API PFS due this quarter will contain the 'Kumina Creek' JORC of at least the dimensions used in my calc?

Go HLX

 

[Sean K]

OK fellow conspiracy theorists.
Can anybody help me out in regard to my previous post concerning our new significant shareholder?................

HLX
114 M shares @ 21.5c = 24.5 mil MC
30% of 100MT @ 57% Fe = 17.1 MT of Fe
EV = $1.43 Fe/T

If we were to use CUL's implied value per ton then we arrive @ $74,727,000 or 65c per share.

In regard to the Au, if we halve someone like NAV's MC than

Conservatively its gotta be worth another 8 - 10c (as per our friends A1)
................

I think you can add in a couple more spec cents into the valuation for their other projects too.

West Pilbera, north of Yalleen
Radio Hill style Nickel target + numerous au targets. We should see some work done on the Nickel target this quarter
Diamonds - 3 x kimberlites, 6 anomalies

Northampton precious and base metals, nth of Geraldton
2 x ELAa covering 1200km, excellent infrastructure
Rock chip samples have returned 17% Cu, 9% Zn, 41% Pb and 56 g/t Ag

Any idea what's happened to the Lake Everard JV with Toro (51%). Toro were supposed to be drilling 5 priority palaeochannel targets last quarter but I can't find any record of this anywhere.

You are right though, the kicker at the moment is the iron ore project. Maybe add a cent for these.

 

[jtb]

Hey kenna's,

Yeah you'd reckon wouldn't you.

"Toro Energy Ltd has been carrying out a regional aircore drilling program during the quarter on its neighbouring
JV projects. This drilling program is expected to be completed shortly wherein the rig is scheduled to move to
other palaeochannel targets which include the Lake Everard JV targets. However as this area is located on the
eastern edge of South Australia’s Yellabinna Regional Reserve, several environmental access conditions must be
met prior to drilling."

From my experience the main conditions to be met in this situation is washing down the rigs and vehicles (tyres) prior to access and your not allowed to leave the track at all.
ie: single line traffic - drive in forward and reverse out
Samples have to be bagged and removed, not laid out on the ground, that sort of thing

Although a pain in the ar$e for the drill crew its no biggy

 

[jtb]

And Mr Wheeler continues buying................

http://aspect.comsec.com.au/asxdata/20070813/pdf/00747830.pdf

 

[Go Nuke]

And Mr Wheeler continues buying................

http://aspect.comsec.com.au/asxdata/20070813/pdf/00747830.pdf

OK!
I need someone to explain this too me please?

How is this announcement saying that Mr Wheeler is buying HLX shares?
Im really confused. Doesn't it say "Indirect" and that its Gee Vee Pty Ltd?

I'd really appriciate some insight on this.

Thx
GN

 

[doctorj]

OK!
I need someone to explain this too me please?

How is this announcement saying that Mr Wheeler is buying HLX shares?
Im really confused. Doesn't it say "Indirect" and that its Gee Vee Pty Ltd?

Disclosure is, or atleast should be, about disclosure over form. Refer the listing rules (3.9A2) and section 9 of the Corps act for what are notifiable interests and what a director should disclose.

Because the director is both related party to Gee Vee P/L and a beneficiary (ie shareholder) of the HLX shares, it needs to be disclosed. Often you'll find directors have private companies of which they solely (or with their family) wholly own to hold their shares for tax reasons and to give the shelter of segmenting their liability.

 

[Go Nuke]

ok thanks....but what does jtb's comment about Mr Wheeler still buying have to do with HLX at the moment then??

Thats where I'm confused.
But thank you for answering my question.

*Edit* Its ok..I found my answer.

Mr Wheeler is buying more shares in HLX though the comapny Vee Gee Pty LTD, which is in 4th spot of the Top 20 Shareholders of Helix (as of 1st July 07)

Hmm guess if the market falls over again i might look at increasing my position.

 

[jtb]

ok thanks....but what does jtb's comment about Mr Wheeler still buying have to do with HLX at the moment then??

Thats where I'm confused.
.

Hey Nuke- what I'm getting at is I find it quite profound that an executive director of Cul and # 1 shareholder buys into HLX to the extent that his combined holdings (Wynthenshawe + Warramboo) then makes him HLX's # 2 shareholder also.
During the same couple of weeks (correction) that our esteemed Mr Wheeler also buys on three separate occasions

PFS due this quarter......................you know the rest

Looking at my calc's I see mega upside on peer comparisons and the above gentlemen seem to agree.

On another note, send me a PM if you were serious about coming west for work (i see you mentioned it sometime ago) Boilies are starting around $30 an hour down here atm and if your coded or have experience on HP stuff then >$40. Mega $$$ up on the gas stuff atm (North)

 

[powerkoala]

any thought of today sp action?
looks like someone try to cap this price with two big buy orders.
is it daytrader speculation or something fishy is going on?

 

[moses]

I bought into HLX late yesterday on the strength of the Neilson SMA chart which to my mind shows that there are a lot of buyers hanging around hoping to pick up falling fruit. Something looks up, I agree, lets hope its good news on the way. This morning its up 15% which is very nice.

 

[jtb]

Good on you moses,

Yes I think something is definately coming.

Keep an eye on them for me, off to Exmouth fishing for week

Go HLX

 

[powerkoala]

anyone knows (roughly) when is yalleen news will be announced?
i think today's movement is also effected by increase in others iron ore shares such as umc, yml.

 

[Go Nuke]

Good on you moses,

Yes I think something is definately coming.

Keep an eye on them for me, off to Exmouth fishing for week

Go HLX

Oooh nice Exmouth, good fishing there. Caught my first Parot Fish there

Yeah i think something is in the wind. I hadn't noticed much price action with the other Iron ore players myself. ( My CFE isn't moving much)
I really thought that HLX would rebound from that 17c range alot faster like most of the other stocks did...but it just sat there

I would have thought that people would value Helix at between 20-22c based on their current projects with expose to Gold,Iron Ore {a bit of silver now which was a nice little add on} & and apparently Uranium...not that we've heard much on that front!

Perhaps it news on Yalleen or API is going to release more info which will have a flow on to Helix?
Either way BIG volume today and a nice clear candle.....all looks good to me.

 

[powerkoala]

this is strange.
market up strongly but now hlx is down.
what is happening?
market volatility? of daytrader heaven?
jeez.

 

[moses]

This is weird I agree. The SMA chart is virtually unchanged (positive buy) but the dark cloud cover on the candle is saying "sell". I sold. Nice profit, but didn't sell at the top because I didn't expect it to fall.

 

[moses]

Well...I'm back in at 0.185c because the SMA chart's signal is just too good to resist. HLX may not be the hot stock of today, but something's gotta pop, its only a matter of time.

Does anyone know when we're due for an ann?