After reading Pedros meandouring and simple minded rhetoric over the last few weeks it has become apparent there is a cognitive displacement somewhere within his mind that is restricting his ability to see things from a broad and rational perspective .
The market is a dynamic and rotational enviroment and does not always operate within rational boundaries but taking an open minded and broad perspective can take us a long way towards understanding the emerging Co model and in Halcyons case it has certainly been a slow shift and irrespective of prevailing market sentiment there are a few interesting points that raise further questions .
The ongoing JV with Minarra will probably continue incrementally as they have conducted extensive drilling campaigns within the area the gelogical sequence is narrowing and through the process of elimination they might ( lets hope ) be drawing closer to discovering an economic zone of ni . Black swan was approx 2B and only has a very small surface area with the strike zone dipping downwards on a sharp gradient and as the occurence of ni is sporadic in nature the possibility of finding an economic deposit in Bardoc is ( well a posibility ) as long as Minarra continue funding the exploration process a discovery is a possibility .
all things are possible but all things are not probable .
As Minarra require additional feed for their plant and their sustained interest in continuing exploration puts Halcyon in a stable position to realise a proportionate dividend on any resulting discovery . Simple mathematics would indicate if a deposit was found and valued at 100M a 30% interest would equate to 30M .
so having this operation ticking away in the background at Minarras expense is no financial and operational hinderance to Halcyon . Black swan open pit is an economically viable prospect and operates on a margin of about 1.8% . I think if Halcyon could prove that nickel was found to concentrate economically within a certain area averaging between 1.7% - 1.9% they might have solid grounds to setup an open pit operation .
With Andrew operating in dual roles between HCY & VMS there is a proportionate balance between his duties and how he allocates his time and resources between both entitities . If it were a larger operation with more people and finances involved things would probably happen a a faster and larger scale but at the moment it is a relative balance . There are more questions I have but at this stage I just couldnt be bothered
HCY
halcyon group ltd
