At the time of writing, shares of Hill End Gold Ltd [ASX:HEG] are up by 40.3%, to 8.3 cents, in today’s trading. Hill End Gold owns potentially the best kaolin project in Australia, which it will use to make high-purity alumina (HPA). The project is located near Ballarat, Victoria, where kaolin mining and processing has continued for decades.
What happened to Hill End Gold Ltd’s share price?
There were two media reports written about the company today. It appears the punters are catching onto the story.
Mike Ware, the company’s chief geologist, found the nearby high-grade kaolin Imerys mine, which has been operating for more than 30 years. He knows more about the region’s geology than anyone else.
That includes Hill End Gold’s kaolin project.
Tolga Kumova and Tom Eadie (Chairman) are also part of the team. You may recognise their names — they’re the founding directors of Syrah Resources Ltd [ASX:SYR]. They built Syrah Resources from nothing into a $1 billion-plus graphite giant.
Are they back to do it again? We believe the answer is yes!
Kumova and Eadie sold the kaolin project to Hill End Gold. But they didn’t just sell it and run. It’s worth billions. That’s why they decided to take shares and buy more on the market. Eadie owns more than his fair share of stock and is the company’s Chairman.
Tolga owns about 5.5% of the company.
It’s no surprise why, either.
The Yendon high-purity-alumina (HPA) project in Victoria could be a monster and make shareholders a fortune.
Could Hill End Gold Ltd shareholders profit by 2022?
Here were the results for the latest pre-feasibility study (PFS):
Source: Hill End Gold
Hill End Gold’s Yendon HPA project should generate $133 million at $25,200 per tonne each year. That’s not bad. HPA is used to produce LED light bulbs, semiconductors and lithium-ion batteries. The total demand was estimated at 24,700 tonnes last year ― up from 16,400 tonnes in 2013. The question has become, how will the company finance itself over the next few months?
The company plans to sell its gold project. They could net millions of dollars, as well.
It’s still early days for shareholders. But if the company can sell their gold projects for a tidy sum and fund the definitive feasibility study (DFS), shareholders could make a lot of money by 2022. That’s when the company plans to start producing battery-grade high-purity alumina ― a sector significantly overlooked by the market.
Resources Analyst, Markets & Money
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