Horizon Copper Corp V.HCU

Long Time ETG Holder

[Countrygent]

As we wait for Rio Tinto, Mongolia and ETG to hash out the final ownership structure at Oyu Tolgoi (which I am convinced means Rio Tinto buys out ETG and negotiates directly with Mongolia about how to transfer the ETG JV and 100% adjoining ground into their joint operating company OTLLC), watch CU spot prices!

ETG is grievously undervalued by its implied market cap at current stock trading price.  The company has not revised any of its NPV calculations in its very limited promotion - the occaissional Corporate Slide Show update, and its periodic continuous disclosure, still uses a $3.25 CU price, $1600 gold (?), or close to it.

Spot CU nipping at $5 and every reason for industry observers seeing treatment charges at Chinese refiners collapsing to conclude there is panic setting in about inadequate supply and rising global demands.

The copper situation is not front and centre in business news, yet.  More attention and capital is going to flow into the sector and OT is one of the most valuable new assets coming into full production in the short term.

ETG - prospects for a significant upward trading reprice plus a further significant premium to market buyout offer - only improving.

Ya gotta luv it.  BUY and HOLD HCU and ETG?

cg

[lumpy13]

First, I greatly appreciate your comments on ETG.  You get it and so few others don't.  I agree and have been commenting since last fall that it is likely to be acquired by RIO at a substantial premium.  It is a gift. Second, HCU is trading at an even greater discount, given it's holdiing in ETG is worth more that HCU's market cap, meaining you get HCU's interest in

[Countrygent]

The Mongolians may accomplish what the arbitration has not - a trigger on timing for Rio Tinto to resolve the status of ETG under the JV Agreement at Oyu Tolgoi. Many people may not know that, contrary to an explicit promise of "best efforts" to get ETG covered by a tax stability agreement as good as the Investment Agreement (accomplished in 2009 for OTLLC - Rio Tinto and Mongolia'

[HF.mongol.khan]

"Since 2004 no IA treatment has been secured.  The licence transfers contemplated to occur upon formation of the joint venture have not occurred.  The Joint Venture Agreement itself has not been finalized and signed." Yep, a good reminder! OK, so in warehousing its ETG in HCU, SSL got more leverage as it can welcome bigger players in HCU locking and  maybe strengthening

[Countrygent]

SSL was under a covenant to vote their ETG shares with ETG management.  The HCU ownership is not subject to that promise. As for the long and fruitless negotiations regarding ETG and the OT joint venture, several events have now occurred which seem to suggest a buyout of ETG to place it in OTLLC may occur in the weeks or months prior to April 2025, or even quite soon. Rio Tinto settled

[johnstrong1]

CG, Whats the value to HCU... They would have to sell ETG at a min of $ 4.00 just to pay off the SSL debenture...that leaves around $15m in the bank and 2 other projects...What am I missing?.Thanks in advance

[Countrygent]

Hod Maden and Antimina are valuable.   Hod Maden isn't huge like OT but it has exceptional Cu/Au grades - see the comparison chart in the investor presentation.   Sandstorm sold a 34% interest in Hod Maden to HCU ... but HCU gave back a stream, and at the same time SSR is in an Earn In position to earn up to 40% in the project but that may be all from Lidya Mines equity.  

[johnstrong1]

interesting, Thanks for that....guess its just a matter of time before investors realize the value. 

[lumpy13]

Useful Presentation by HCU from 6/30/24 (nothing more recent): https://www.horizoncopper.com/wp-content/downloads/Horizon-Presentation.pdf