Q: Do you still like HSTR? To my layman’s eyes it seems to be “firing on all cylinders”. Thinking of selling my GOT to make the purchase. HSTR plots better than GOT, it has a higher market capitalization and it is already profitable. I believe it’s mines are all located in Mexico so there is some potential robbery/extortion issues I suppose. Any other comparative negatives?
Any thoughts you have would be appreciated.
Jim
Any thoughts you have would be appreciated.
Jim
5i Research Answer:
We still think HSTR is fine and looks good. GOT is still not producing, so they are different, and we have nothing against GOT currently. HSTR remains debt-free with cash, and is moving to profitabilty, with EPS expected to double next year. The Q3 was good, with record production, and guidance was affirmed. All-in costs were good at $1,825/oz. Recent drill results also look solid. Mexico remains attractive for mining companies. There are always some concerns but we would consider it a favourable jurisdiction. We would not really see GOT as a sell, but would still be OK with a switch if only one of these is desired to be held.