HRS - Hudson Resources - Aussie Stock Forums

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  1. #1

    Join Date
    Oct 2006

    Post HRS - Hudson Resources

    Have I got my math right?

    This from my forum. Can you guys check it as I may have made a mistake.

    OK the Vasse coal project is JORC 116 million tonnes permian coal.

    From Wikipedia http://en.wikipedia.org/wiki/Bitumin...#Permian_Coals

    Permian Coals

    The second largest deposits of the world's bituminous coal is contained within Permian strata in Russia and also in the Bowen Basin in Queensland, Australia, as well as in the Sydney Basin and Perth Basin where thicknesses in excess of 300m are known. Current reserves and resources are projected to last for over 200 years.

    Australia exports the vast majority of its coal for coking and steel making in Japan. Certain Australian coals are the best in the world for these purposes, requiring little to no blending. Some bituminous coals from the Permian and Triassic in Australia are also the most suitable for cracking into oil.

    Vast deposits of oil shale exist in the Permian sediments of Queensland.
    From the company announcement.
    High energy, low ash, very low impurity coal for energy and steel making markets in Europe and Asia
    Lets say a conservative price of US$40 per tonne

    116 million * US$40 = just over $4 billion value.

    So lets say they sold for 10% of that value........$400 (announcement did not mention a figure) and Hudson owned 25% of the project.

    So Hudson gets $100 million plus a royalty

    100 million shares on issue

    Shares closed at 14.5c on Monday!
    Is it worth $1?

  2. #2

    Default Re: HRS - Hudson Resources

    Is anyone watching HRS???????

    . over 91% of s/holding is held by top 20
    . Parent coy have been buying up all available shares
    . HRS has announced they are doing a buy back
    . owns 66% of Tiaro Coal
    . royalty earning from Vasse Coal
    . earning income from mineral clays
    . recently signed HOA to develop 4,214 approx sq kilometers of highly prospective bauxite tenements.
    . holds a strategic investment 22.5% interest in Hudson-MPA Sdn Bhd. Hudson-MPA is owned by Malaysian Phosphates Sdn Bhd, Ashapura Minechem Ltd (India’s leading producer of bauxite, bentonite and attapulgite) and Safico Sdn Bhd (private Malaysian investor).
    . has top geologist consulting - Jacob Rebek ex Rio Tinto Limited - chief geologist (32 years)
    . Parent coy (HGL) recently purchased $9 million odd shares in GUL
    . various rumours circulating about news of zinc strategy (Jacob Rebek was involved with Century Zinc Mine)

  3. #3

    Default Re: HRS - Hudson Resources

    PURE SPECULATION: Robin Bromby | November 10, 2008
    Article from: The Australian

    Hudson in spotlight

    ALMOST a year ago we mentioned Hudson Resources (HRS), a small player that had attracted very little market attention.

    It is still very much under the radar. Planning for a new resources strategy began about 18 months ago, and you can now start to see the shape of it. It has two main thrusts: bauxite under its own banner and metallurgical coal through its Tiaro Coal (TCM).

    There is another point worth considering. Hudson, unlike most explorers, has cash flow. It extracts attapulgite in WA and produces cat litter and industrial absorbents.

    Hudson is now finalising its drilling program, which will start early next year on the bauxite target 20km northwest of the NSW town of Inverell. While this region is better known for its historic tin, silver and base metal mines, bauxite was actually produced there more than a century ago and crushed to make road surfacing.

    The company has engaged two 40-year industry veterans who know their way around bauxite: Jacob Rebek (who joined the former CRA in 1970 and stayed for more than 30 years) and Andrew White, a former chief geologist at Comalco.

  4. #4

    Default Re: HRS - Hudson Resources

    Anyone interested in having a look at HRS bauxite strategy.........

    and their investor presentation.......

    and some info on bauxite mining in the Inverell region by another company......

  5. #5

    Default Re: HRS - Hudson Resources

    having been following hudson resources for a few months now and the early closure of their Aust Bauxite IPO looks promising for production of bauxite/alumina to the world

  6. #6

    Talking Re: HRS - Hudson Resources

    I bought into this company recently because I believe it represents extreme fundamental values at 20 cents a share (which implies a market cap of 21.2 million).

    My maths is as follows, as per the quarterly report:

    31.8 million shares in Tiaro Coal, current market price of a TCM share is 47 cents, thus 31.8 million x 47 cents = 14.95 million

    20 million options in Tiaro Coal usable at 30 cents, thus 47 minus 30 = 17 cents per share implied option value, therefore 17 cents x 20 million = 3.4 million

    55 million ordinary shares in Australian Bauxite Ltd (held in escrow until 23rd December 2012) , market price per share is 53 cents, thus 55 million x 53 cents = 29.15 million

    Their absorptive materials division, nominal value of 1 million dollars.

    Royalty & Uplift payments from the sale of their coal tenement.

    A property in Geraldton, WA, earning approx 300k a year, so nominal value of 1 million assigned.

    Hudson MPA Sdn Bhd, 22.5% shareholding in an operation in Malaysia producing bleached earth, Malaysia is one of the worlds largest users of bleached earth. Value assigned, $400,000 as per their quarterly report.

    Plant and equipment for their absorptive materials divison, cost to replace 5 million, but I'll assign a value of 1 million for the purpose of this valuation as I'm personally not very comfortable assigning a higher price.

    The company has no debt, has a cash position of 4.7 million (assumed to be 1 million for this valuation as this is an old figure derived from their last annual report and thus would have changed).

    Thus 14.95 million (TCM), 3.4 million (TCM options), 29.15 million (ABZ), 1 million (Attapulgite), 1 million (Geraldton low valuation), 1 million (processing equipment), 1 million (low assumption of cash on hand value).

    14.95 + 3.4 + 29.15 + 1 + 1 + 1 = 50.5 million in assets

    Market cap is 21.2 million. 50.5 - 21.2 = 29.3 million in "free" assets if you buy in at 20 cents per share. As this my personal calculations the actual value of the company may even be higher!

    As always do your own research, and refer to financial professionals if needed.

  7. #7

    Default Re: HRS - Hudson Resources

    On July 7th, 2014, Hudson Resources Limited (HRS) was removed from the ASX's official list following the request of the Company.

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