{kanada_flagge} As Homerun Resources’ (TSX.V: HMR, FSE: 5ZE, WKN: A3CYRW) shares literally explode, attacking their old highs from 2013 and 2016, the board provides a comprehensive update on the company’s recent performance and outlines the company’s strategic growth plan.
Conclusion: The strategy makes a lot of sense in its individual phases as well as in its entirety and the last steps taken in this direction knew how to convince investors. The share price has therefore staged an impressive rally in recent weeks. Now the share is scratching at its old highs. It will probably be difficult to overcome them permanently at the first attempt. But if Homerun Resources succeeds in significantly clearing this hurdle in a second or third attempt, more investors will take notice of the company, which could lay the foundation for a further upward movement.
As Homerun Resources’ (TSX.V: HMR, FSE: 5ZE, WKN: A3CYRW) shares literally explode, attacking their old highs from 2013 and 2016, the board provides a comprehensive update on the company’s recent performance and outlines the company’s strategic growth plan.
The company’s strategic plan is for Homerun Resources to become a leading energy and industrial materials company with its high purity silica sand (HPQ Silica) offering in three phases. The idea behind this is as simple as it is logical: we live in a society whose technology is built on the use of different materials.
HPQ Silica is one of these materials. It is used in numerous industrial and commercial products and is thus a component of many solutions in the energy and technology sector. In mobile devices, HPQ Silica is used to make chips and interactive glass. In the manufacture of solar systems, HPQ Silica is the starting material for the production of polysilicon and solar glass.
In other words, without HPQ Silica, there would be no solar power generation and no mobile devices. The negative news for the world, but extremely positive news for Homerun Resources and its shareholders, is that the world’s supplies of HPQ silica are being depleted faster than they are being discovered. It is therefore foreseeable that security of supply for the world’s second most widely used commodity after water will soon become a major issue.
As if needing further confirmation, the US Department of Energy recently stated in its “2023 Critical Materials Assessment” report that the importance of silicon for energy solutions such as solar and storage technologies is undeniable. The need for a reliable and stable supply of silicon is thus undeniable.
Homerun Resources three-phase plan
Homerun Resources therefore sees itself not only as a raw materials company that merely mines the raw material, in this case silicon, but it is a materials company because it processes the silicon oxide into industrial solutions. This means that the company covers a much broader value chain than a normal raw materials company.
Phase one of the strategic plan covers HPQ Silica Supply. To successfully cover this part of its strategic direction, Homerun Resources has recently secured a significant supply of HPQ silica in Brazil. Against the backdrop of increasing global demand, this move cannot be overstated as it is essential for any company in this sector to secure stable and reliable sources of HPQ silica.
The second phase of the strategic plan covers infrastructure and logistics. Of course, it would be possible to simply sell HPQ Silica in its natural form. However, if a company wants to gain access to many end uses, the raw silica should be processed, i.e. washed, calibrated and refined, before it is used. As part of the second phase of its strategic plan, Homerun Resources is focusing on integrating infrastructure and logistics for mining, transporting, storing and processing HPQ silica. Further announcements in this area are expected later in the second half of 2023.
The third phase of the strategic plan focuses on revenue and vertical integration. Like any company, Homerun Resources is looking for stable revenues. Initially, these come from the supply of sand in its natural form. If these revenues can be used to build up the infrastructure and logistics for processed HPQ silica, higher subsequent revenues can be generated.
At the same time, Homerun Resources is conducting further research, alone or with partners, to offer products that provide a competitive advantage in the HPQ silica vertical. The Homerun board also expects further success stories in this exciting area this year.
Conclusion: The strategy makes a lot of sense in its individual phases as well as in its entirety and the last steps taken in this direction knew how to convince investors. The share price has therefore staged an impressive rally in recent weeks. Now the share is scratching at its old highs. It will probably be difficult to overcome them permanently at the first attempt. But if Homerun Resources succeeds in significantly clearing this hurdle in a second or third attempt, more investors will take notice of the company, which could lay the foundation for a further upward movement.
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According to §34 WpHG we would like to point out that partners, authors and/or employees of GOLDINVEST Consulting GmbH hold or may hold shares of Homerun Resources and therefore a conflict of interest exists or may exist. We also cannot exclude that other stock market letters, media or research firms discuss the stocks we discuss during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between Homerun Resources and GOLDINVEST Consulting GmbH, directly or indirectly, which means that there is also a conflict of interest. Especially since GOLDINVEST Consulting GmbH is remunerated in this case for the reporting on the mentioned company.
