The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
17m19s transcript, Malcom
"customs data out of china which is a very good window into an opaque market you're looking at 350 375 dollars per mcf at the moment on bulk transports and we're hearing anecdotal reports of end users paying up to fifteen hundred dollars per mcf and it's the same helium just in a smaller packet"
Sure DM said He1 would initially be supplying in bulk, then maybe later supplying end users.
But still does'nt explain DME's prices,,
rpoodle - you need to listen and read more closely. The process of liquifying the Helium (which is the only way to transport it) transforms the Helium to 99.999%. There is no option for providing what you call "crude gas" and they are not offering different grades of Helium to the customer. Please stop speculating and try doing a bit more research. There was an interview this week (linked in posts here) that you can actually hear the full explanation.
Thanks. I checked their recent presentation, and see that HE1 mention their helium being 99.999%. Something does not add up here. The prices they are quoting are for crude helium, but they say they are producing the high-end stuff. Perhaps initially they will produce only the crude gas, and as their customers increase and cash inflows grow, they will invest extra amounts in the equipment needed to get up to 99.999%. Pure speculation on my part though...
Hi Noob67
I guess there are so many unknowns right now, it's hard to put a de-risked value on it.
We don't know the market price (as you say - deal-by-deal basis, but we can be sure the $280 is low).
We also don't know the concentration levels 4, 7, 10%.
We don't know how many (if any) drills from the four will be successful.
What we do know though is that if one drill is successful, then the de-risked value will be in excess of £1 and highly likely to be in excess of £2 (just my opinion of course).
The next 3 months are going to be exciting that's for sure.
Still climbing strongly over in USA, should kick on tomorrow again
Re: post from the sidelines.
Keep polishing the shoes, my friend, may God bless your cotton socks.
I much rather get my helium clean, than the dirty stuff that DME are
flogging to the market; analogy, when you want a cream cake, do
you prefer proper cream or sheen; polishing helium, sorry, if l chuckle.
Take care my friend, HE1 will deliver the best for the rest, sometime soon.
Good point - if we are producing in the next 18 months, the price now will not be that meaningful other than giving a potential snapshot of the scope. Demand and supply of Helium could be quite different by the time we (if we) start producing.
Noob - I tend to believe DM and yes he may be conservative bt as he made clear there is no "market price" for Helium it is very much negotiated on a deal by deal basis. It may be that DME threw a number out to help inflate their own mcap.
Anyway as DM says there is no need to worry about that until we have the discovery, flow results. mining licence and processing plant under way.
I'm sure today's price for Helium will be different to that in 23/24
rpoodle - "HE1 are planning to offer crude helium, valued at perhaps $300 per m cu ft. It will be refined up to around 80-90% helium purity"
I'm not sure where you get your information from but DM made it perfectly clear that the Helium produced will be liquified before trucking and that process ensures a purity of 99.99%
There is no such thing as "polishing" Helium
I would strongly suggest you listen to DM's various interviews and hear it from the horse's mouth rather than make stuff up
Hi Noob. Happy to chime in (I hold both DME and HE1). HE1 are planning to offer crude helium, valued at perhaps $300 per m cu ft. It will be refined up to around 80-90% helium purity.
DME are planning to go one step beyond that, by planning to “polish” the helium up to a level of 99.9% and beyond, as that price can range from $1,200 per mcf to $3,000 per mcf (or at least that is their claim). It requires extra investment to have that additional capability, however (though they claim only an extra $12m).
So, in short, they are both refining, just not up to the same levels of helium purity. One interesting question is whether HE1 would ever want to do this as well—namely, “polish” the helium to above 99.9%—assuming exploration is a success.
Three types of Discovery, i guess thats 3x RNS?
1. show-gas in mud, from cuttings sampled in real-time
2. discovery- reservoir(including seal) identified in wirel-ine
3.Flow - gas ratio sample,%
Wells to be bridge plugged waiting for appraisal, Sept-Nov
I know they also use the helium to purge the fuel tanks, being inert there is no chance of a reaction and an unexpected take off..
Yep it’s something like that.
I’ve seen or read it before.
Something to do with take off I think.
Not sure but could be a coolant for the rocket engines.
Usa closing at around 30 should see equivalent jump on open Monday morning to 21/22p
Prae,
Ok, he might but he will need to cough up some serious cash.
For the time being, I think I like the idea of party balloons and funny voices, especially with Morgan Freeman!!
https://youtu.be/FRKVQcbIByo
Good weekend all
ST, I don't see why not. Or even SpaceX? I'm sure they've started making their own fuel now and DM said that SpaceX use $12 million worth of helium per flight, why not buy HE1 and cut the price of the helium they're buying from $1500 per MCF (potentially, DM said that's what some end users are paying) to is it $50? (For HE1 to break even). When he's hoping to send 1 million to Mars (each flight would need a separate cargo ship, each ship could hold around 200 people, a lot of flights), set up Starlink, supply the Space Station, main contractor for the Artemis mission etc, that's an incredibly high amount of helium he'll need. So buy HE1, cut the cost of the flights drastically making them even more appealing to the market as a contractor resulting in more contracts and still have a $6 billion asset that's making you $150 million on top of all that. Doesn't sound too bad to me
And as for deepblue, he's been sneaky adding steadily.
I don't feel that the price here reflects the real opportunity. The level of risk seems low to me. The one thing which is an unknown appears to be if they can seal the wells, but with enough options, you just feel that they will get a least one successful drill location (and, IMHO, quite a lot more too).
Enjoy your weekend. Roll-on Monday eh!
That's a bummer mate. Hope it bounces back up so you can offload and get more here sub 20p.
I've been selling some other shares and crystalising 5-7% losses to free up funds for HE. I try to not view the money as 'real' money if that makes sense. I just hope that this makes it up for me.
But, with the drilling delayed until June let's hope we all get some more days like today. I missed out on the 17p level as my son turned up so I got side-tracked. I debated whether to disown him this afternoon - it was a close call ;).
SeagullsFan,
I missed the opportunity as the other share I own went down today. But we shoold have news hopefully in one or two weeks, then, I will complete the transaction.
But well done to you and Blue..you guys were handed a gift today.
;0)
Fair points Prae
Qatar petroleum net asset worth 104Bn
2018 revenue 30Bn
Shouldn’t be a problem for them to take us out.
:)
Hey Mr ST.
Did you pull the trigger today, or keeping your powder dry? ;).
Prae, what stops a Qatar multi billion Co to offer $10 Bl to acquire Helium One? I am sure we will be under the radar of many other parties as we type this. The eyes of the world is on HE1 and Tanzania in the coming months.
Let them not have your shares. IMHO
Good weekend all.
ST