Q: What do you think about this company for a speculative, higher potential risk/higher reward investment?
5i Research Answer:
HSTR is a mineral developer/explorer. Market cap $305M, up 113% this year. Mexico is its focus, management is good with prior big company experience (and sales). It has ambitious plans to produce 500,000 ounces of gold annually by 2030 from four mines (right now it is in the 35,000 oz range). Its project portfolio looks good and a feasibility study on one is expected next year. Insiders own 3% and have been net buyers this year. Eric Sprott owns 15%. The balance sheet is OK and it will start producing better cash flow soon. Risks are high here, but it has the right mix of qualities for good potential. We like the momentum and of course the sector has been doing well. We would be Ok owning this for higher risk sector investors.