Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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In in time. Once it holds the 11p close that could be the signal new money has been waiting for.
With so many investments going below the placing price folk are rightly cautious and look for momentum before buying. Not saying that that is now but it could well be soon.
Those of us invested now knew the risks of a dip below the placing price. But we also appreciate with so many shares tightly held, and logically the newsflow, any pullback should recover relatively quickly.
I think it hasn’t dipped because the 100k trades have been orchestrated in an orderly market where the general consensus is that the current mcap offers the chance of plenty of upside.
Imo this will do 1 or 2p in a single day soon. Then it will get noticed and folk will get their slide rules out!
Usual caveats
Trek
So have I.
Very many thanks guys I've just jumped in
From their plans as laid out in the presentation and interviews done since listing , the $9.3 million raised at ipo will be spent as follows;
1. Scoping study this quarter
2 One appraisal well to be drilled and extended flow test Q3 ( costs $2.5 Million)
3 option for a second appraisal well
4, Feasibility studies in Q4.
5. May acquire additional project.
Next expected news due soon is the rig contract .
The ipo share flippers look to be nearly done imo.
Thanks Trek
Think we are agreed 11p is far too low!
Hi Jethro,
“ Future additional funding is, of course, inevitable,‘
On that I think there are options.
Whilst some working capital may be needed ahead of sales, if HEX get lucky on the first drill which is likely given the shows and geo then I think the Bod will go down a completely different route to HE1.
If HEX can flow helium to the surface then given the relatively cheap infrastructure I would not be surprised to see a customer step in or even the DOE or both to achieve security of supply.
What are we talking, 10m for offtake or even split it between two customers and they get exclusivity. It’s a lot for us but not for the majors.
With Bo’s contacts expect the unexpected imo.
Anyway getting ahead of oneself.
Let’s finish the scoping and get a good rig deal, there’s plenty of rigs parked up!
Usual caveats
Trek
Or even Part 3!!!!!!
The world shortage of Helium will maintain interest in both companies, the proving up of reserves at Itumbula will ensure on going support for HE1, but as already mentioned, escalating costs and with a free float of over 3bn shares, at the mercy of day traders; the share price will not fully maximise its potential, without external support.
The analyst consensus target price for the shares is 5.63p.
It is very much early days at HEX, however, which has the advantage of being closer to the main market for helium but also importantly has institutional backing of around 17%, but perhaps most significantly, board members hold a similar amount,
Future additional funding is, of course, inevitable, but according to the IPO literature, the cost of drilling and testing a well in Montana is around $2.5m, and so the company is fully funded for the first three wells.
There will almost certainly be less hype from DM this time around, but if they can achieve half the value of HE1, three months prior to drilling, a valuation of £25m or 20p per share, would not seem too unreasonable!
Caesar
Part 2
sorry for the delay
Jungmana
Inclined to agree
but being ultra conservative with 20p
As always
DYOR
Caesar, imo 30p £36 million market cap) by well spud is realistic.
On sucess who knows could do a he1 and get to £100 million market cap.
The big advantage hex has is the proven experience BOD especially the ceo, the project location and is fully funded for next 6 to 9 months .
Caesar
this may help!!!!
Helix Exploration (HEX)
The shares have recently listed on AIM, following a successful IPO which was three times over subscribed. This raised £7.5m and capitalised the company @ £12.2m. The funds raised will enable them to embark upon a Helium exploration programme in Montana, scheduled for Q3 2024.
David Minchin is their CEO, formerly of Helium One Global, and naturally comparisons will be drawn between the two companies.
Helium One raised £6m with an issue of shares @ 2.84p in December 2020, capitalising the company @ £14.1m. The shares traded @ around 4.5p for the next few weeks but by the end of the month stood @ 7.25p.
This capitalised the company @ £36m.
In April the shares in issue increased by 100m with the further placement of shares @ 10p. This was well received by the market and by the end of that month the share price had risen to 14p.
This capitalised the company @ £83m.
As the prospect of a positive exploration campaign grew, the share price continued to climb. By the time drilling commenced at TAI 1 on 14th June the share price had reached the twenties. Fuelled by positive indications, and with the benefit of hindsight, over optimism on the part of DM in particular, this was the time to take profits. The shares peaked by September @ 28p.
This capitalised the company @ £166m
Drill results from both TAI1 and TAI2 proved inconclusive, the share price collapsed and continued to slide as the company failed to resume drilling the following year, and in December a further £8.8m was raised @ 5p.
David Minchin stepped down as CEO in February 2023.
Despite securing their own rig, after weeks of negative progress, the huge cost of prospecting in remote parts of the world, impacted further, with the need by September, to raise a further £6.3m @ 6p.
Sentiment improved slightly by November, as results from TAI3 were eagerly anticipated, but whilst reporting encouraging shows, failed to deliver anticipated results and the share price deteriorated further. The next month, In what, at the time, seemed to be in desperation, the company was forced to raise a further £6m @ just 0.25p.
The share price continued to fall, and reached a low of 0.18p in January, Prospects finally improved, following results from Itumbula West 1, which “showed helium flowing to surface in significant concentrations,” and the shares began their recovery.
In February, however, it was felt necessary to strengthen its working capital position and £4.7m was raised @ 1.5p.
Sentiment suggests, further dilution may be needed, amongst other things, to fund an Extended Well Test planned for later in the year, adding to the 3,715,710,763 shares now in issue. Very few of these are held by board members, the majority are held by small private investors, many of whom are day traders and these factors have been, and continue to be, the main reason for the dismal share performance.
At 1.4p the company i
New here so any guesses on what the share price could achieve on good helium results this July
Overweight in here now my last top up this morning.
Hoping to take some profits on the way up and leave my core position in for the journey.
Will follow the news timeline as opposed to charts because there are some obvious price pivots ahead.
13m mcap funded for 3 drills within a known helium geo in the US is way too cheap imo.
I really think Bo knows exactly what he is doing and with DM’s battle wounds you can already see from the restricted placement that they are in tune with investors.
I fully expect deals aplenty with these guys and maybe even a JV further on to spread the costs.
Usual caveats
Trek
Helix on twitter. Give the account a follow;
https://x.com/HelixExp?t=7QsouO2pM4IopH1lYWy-KA&s=09
Ok this is additional lateral thinking along the lines I posted before about the US onshoring lithium, ergo helium. And the DOE + Ford buying into Thacker Pass (a huge lithium project) to tune of +$2.4bn to secure US lithium supplies. (I posted the links earlier)
So here you can see another parallel, this time ‘gunpowder and the associated cotton’ that comes from China. Ergo helium!
https://www.politico.eu/article/saab-ceo-warns-against-reliance-china-make-weapons-europe/
It seems unbelievable that Europe ‘could end up asking for a truce’ coz a potential adversary, China, won’t supply weapons propellants to Europe during a hypothetical future conflict! Crazy eh….
Well actually due to the Ukrainian war there is now a queue as China is prioritising selling propellant to Russia whilst Europe waits!
So we cant pass on shells to Ukraine coz we don’t produce our own propellants at any scale so we now have to wait for deliveries from China which will occur after the Russians have their orders filled !!
Well that’s the gist of this fking madness!
But still it’s cheaper for us!
Also if production is in ‘honest’, green’ China and it’s not in our back yard then that makes it greener as well!
So now extend the narrative and you will see that is the reason why the US will secure their own domestic helium supplies.
Weapons, space, chips and medical! That seems a pretty good incentive!
The US are serious about independent security of supply. Not like the UK under any govt or Europe for that matter. We think it’s fine not to develop gas in the North Sea, a key transition fuel that enables a move away from coal.
Instead we greenwash our own narrative and then import gas from Qatar, US or even Russia at premium prices and higher footprint and worse still use coal power as a backstop!
This country is bonkers!
When will we realise that as an island we have independent, fisheries, farming, energy + green energy, financial services, infrastructure, water and even mining! Etc!
We need to follow the US onshoring model of supply security!
Oops,
Usual caveats,
Trek
I wouldn’t worry about a rig. Look at the NG prices and rig count. Down 134 on this time last year!
https://rigcount.bakerhughes.com/
We should be able to get a good deal. Many will be idle or nothing scheduled and glad to have some work.
Usual caveats
Trek
Agree Dia!
But if they can get the rig sorted then nothing to hold this back IMO! Good Luck!!
I wouldn't worry about the gas escaping, just the rig ;)
Clearly not done your basic homework here. The transport all covered in interviews by Minchin, even down to detail of recovery method using pressure swing absorption.
The transport is a not an issue. Will be bottle/liquified and sold to market. Even better for Hex is they are located in probably the market that can command the highest retail price being source is in the US. Far easier than other operators like He1 and Nobel Helium.
Thanks for the replies to my question.
Interviews here for you;
https://youtu.be/2uIlWZKSvYY?si=3AVpAE2vN2cNcUJJ
https://youtu.be/WPBVtIHacJM?si=voltshMgK4aE7-V_
Centralbank listen to the interviews on Crux and proactive.
Your answer lies there.
Bo Sears and the BOD have done this before and not novices.
Bo wrote the book and his brother works dowstream - sounds like the company is well placed to execute on a find!! Also Greg Peters seems awefully connected to from my research....!
How is this company planning to get the helium to the end customer?
A pipeline would be expensive surely?
Compressed gas?
Liquefied?