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@Ezhik Agreed.

The first year of production in Montana pay a much lower state tax (0.8% I believe) so it makes sense to maximise production where possible vs cash available.

They therefore have plenty of time to at least get one more well-drilled and ready. Then it would be about the membrane unit being added to the front end of the plant to tie it in.

A two-well initial production hub would be my base case as it guarantees sufficient cash flows for investment even in any lower helium price environment (if it happened) plus protects against any potential interruptions at one well whilst further wells are being drilled.

I love the set up in terms of being able to produce but also add additional wells as they become available rather than complete all the drilling first and then go into production. I still don't think the market appreciates that advantage.

Anyone focusing on Clink #1 isn't thinking straight.

Helix is very close to announcing a significant Rudyard reserve valued at $250m before they started drilling. Now it could be much larger.

They are also targeting first production a good six months ahead of the previous schedule at a fraction of the cost to achieve it. With sizeable reserves, a self-funded PSA, a successful flow test and cash on hand they have surely given themselves enough leverage to secure finance to complete what will be an amazing journey to first production inside 14 months of listing.

If they do that then the market better start pricing in a 5-well production hub at Rudyard knocking out c. $20m in pre-tax cash flows. Once that journey starts then funds, management time and energy can be focused back towards Ingomar. This is a tiny management team that is clearly working very hard to ensure the first production happens at Rudyard for the least cost possible.

Pull the above off and we are on for a substantial re-rate without even whispering the word Ingomar. But deliver that too and the sky is the limit given what Bo knows and has access to in Montana and the US helium world

PS I too am being conservative.

Hi HarChris,

Appreciated. My own numbers have net cash at around $15m before Segun presented today. This being based on previous commitments to bring the account's payables back into line. So on that basis I would expect to see a healthy movement there (upwards of $10m).

If we strip out the remaining loan payment, add $12m in cash and remove a further $10m in accounts payables then the working capital deficit should be very close to breakeven at YE. I don't underestimate the significance of this given the noise made about it last year.

By the time Q1 reports they should be adding very significant chunks to their cash pile.

Let's just get this dispute put to bed properly.

Good presentation and Segun does his best to answer as many questions as possible.

Minister's statement expect to made public any day now then THX will follow up with a press release. reading between the lines THX know what his findings are already.

Segilola 7,500m additional drilling is expected to be completed this quarter. Sporty. Then an optimisation study of the pit will take place and then it "may be appropriate to update the market" around Segilola resources and so first mine life extension pass ut drilling will continue after that (success driven).

Douta PFS this quarter. The level of detail will be the top end of the PFS level. Not expecting to dilute shareholders for the equity portion which indicates that it isn't a crazy build figure. As suspected the AFC is expected to be involved in financing. I trust it will be a much better deal terms-wise. My take was FID H2 2025 but will be latter part at best. A lot can be talked about though in terms of NPV and financing beforehand. No dilution ensures more NPV can be included front end in the overall valuation.

remaining 4,500 oz of gold hedges unwinding at 1,500 oz per month this quarter. That's not a lot given the production so another high average sales price can be expected in Q1.

Strong progress on accounts payables. Great.

Net cash position multiples of the end of Q3 figure of $2.7m and growing on a monthly basis.

Gold stream liability paid off by mid-2026.

Looking to return cash to shareholders in some form in 2025.

Sustaining capital for Segilola capped at $5m in 2025.

All in all the company is now in very good shape. The ministers statement is potentially a big trigger point if it puts the matter with Osun State firmly to bed. Other than that its a cash cow with more mine life looking very likely indeed.

Why? because in the holes drilled to date they've hit 90% mineralisation with some very good grades.

I have never taken part in a Twitter group. You have the wrong person. But yes by all means let's leave it there.

Sorry, that should have said "I have never heard of that stock..." What a word to miss out given the context.

@Stalin123 I think you have perhaps got me mixed up with someone else. AEG? I don't know that ticker. I've just searched and found Active Energy. Is that the one you mean? I have heard of that stock or indeed ever owned it.

My full (and long) history on LSE is there to be checked. You won't find that company anywhere. If it was in the last 3 -4 years or so then I wasn't on LSE very much as I had moved onto Twitter. I am invested in ECR where Doc (I assume you mean Doc Holiday) is the CEO and have heard criticisms of him but to date, he's doing a fine job as far as I can see.

No problem if you don't believe me but I do think you've got me confused with another person.

@Horsetrader2 I'll add one more thing before I take a break from this BB.

None of the businesses reported an operating profit in Q4. So despite the warehouse more (which didn't start until mid-Oct and will have undoubtedly come with teething pains), they each had some costs (picking, postage,, advertising) that will need to have been covered by cash even before the overheads (minimum £600k) were eaten into.

Stock on hand at the start of October was £1.8m. They sold £4.3m of stock. So even when held at cost to purchase that is considerably more than they had on hand to start with. Stock lines were down by c. 25% in early January. That indicates a 25% swing in value = £450k + margin of c. 20% = £540k.

Even if all 3 businesses had broken even at the operating profit level the business would have burned an additional £200k to cover head office costs for the quarter. So there's your first part. But as I said earlier the business isn't standing still. Just because slower lines get sold off doesn't mean they haven't invested in more profitable replacement stock. Te amount of which we have no information on at the moment only trust which is either there or not.

But simply taking the 200k off the 540k sum and then allowing some more movement for the operating loss in Q4 substantially covers any stock sell-down. Be it that the calculation I offer is very simple.

This is not the case and nor will it ever be that stock is built up and sold off delivering a big cash injection prior to another buying spree. It doesn't work like that. All we see are moments in time.

@Stalin123 That is out of order.

I was merely trying to help by summarising what I know/feel and what management has told me. I don't need to spend my time writing such lengthy answers to what are one or two viewers at best. It won't change the share price for the better.

By all means, sell, debate among yourselves whatever. I'll go spend my time doing better things.

I would also add that the "scaling-up of warehouse capacity" which was mainly executed in H2 2024 was a one-off. After that, it is about pickers and stock which are directly attributable to sales.

So the cash burn in H2 whatever it is should automatically reduce due to less CAPEX spend.

Note also after this spend they should have a near double capacity of c. 220,000 quarterly orders.

At the current average AOV of around £37 an order that equates to over £8m in revenues per quarter without any further major investment other than stock.

Note that,

Cash on 30th June was £3.28m

Cash on 30th Sept was £2m.

Cash at YE was £1.6m (with £400k to come from Let's Explore).

It is clear from these figures that cash burn is trending significantly lower.

It is important not to forget their head office overhead costs. Total admin costs were £1.8m before Beauty Boop was added post-period end. Of that £1.8m approximately £1.2m sits outside the overhead costs for each business. This was what the CFO told me and I posted here some weeks ago.

So when the 3 businesses hit operational profitability they then need to cover around £2.4m in yearly head office costs for the business to reach overall profitability.

That works out at about £600k per quarter so the fact that cash burn in Q4 was 'just' £400k indicates that cash inflows through stock sell downs was achieved and/or head office costs were reduced (not communicated and so assumed not to be the case).

The shared warehouse space (which I was told is now being grown into an the February date for start remains intact) further reduces costs and so will help reduce cash burn further. Increased sales will also lend a hand.

I take your point about stock on hand but it is important not to lose sight of the fact that it is merely a point in time. Cash is constantly being regurgitated and used for new stock acquisitions. That said they clearly took a bit of a hit on some lines in the run-up to Christmas as their plans changed to accommodate what looks like a new warehouse layout design.

I take heart from this,

"We ended 2024 with cash on hand of £1.6m. The directors remain confident that the Group has sufficient resources to take the business into profitability."

Especially when I know that another £400k is coming.

Also,

"The adjusted EBITDA loss is expected to be narrower in the second half of the year compared with the first half. The FY 2024 loss is in line with our expectations and reflects the fully expensed acquisition of over 100,000 customers in the year and scaling-up of warehouse capacity."

How narrow will be interesting to see but it is clear that this period was one of investment in new customers. H1 2025 then becomes about driving greater sales within this customer network.

Lastly, I would say that Nutricircle and Discount Dragons must be agonizingly close to operational profitability. Beauty Boop given how new it is has shown fantastic initial success but is bound to place a strain on overall operational profitability until it is more established. That is why their confidence in achieving profitability with ther current resources was interesting to read because it says they see well over £2.5m in margin growth this year. That equates to a lot more revenues.

Well I would think it is based on the original mine plan which was 518,000 oy over I believe (don't shoot me if wrong( 5.5 years.

That said it is not uncommon for mine life extension to be talked about in terms of current production which has consistently been forecast at 85,000 - 95,000 oz.

I would point out that the initial drilling was stated as being to turn inferred resources into reserves., They currently stand at c. 135,000 oz but clearly they are discovering more as they drill.

So my view given the time it takes to collate such a report they will likely want to hit two years which would mean +170,000 oz but this is mining so want and get are two different things. A good question for tomorrow though.

I am very confident that Segilola will add several years of additional production and take a great deal of additional heart from the 7,500m drilling programme expansion.

To date, reported holes have been in the region of 300m in length. So we are talking c. 25 more holes so they are clearly seeing worth in what they have found so far.

Tomorrow I would like to understand what the cut-off point will be for the first resource updated. It was said that this could be a rolling process. We were also told previously that the satellite deposits would be collated by YE24. But perhaps these will now be tied into the above update.

Remember just because these satellites are below what THX deem to be a large deposit (stated as being over 200,000 oz by the CEO) doesn't mean we aren't talking a healthy sum.

I would think 2 years extension would be the initial goal which may answer my original question. But let~s see what he sazs tomorrow.

I am also based abroad Gallmat. If you don't mind me asking Gallmat which platform do you use to trade UK stocks?

(This is not aimed at you Gallmat)

These last few weeks I have found myself answering criticisms of shares I own from individuals who seem to think that the negative state of the market only applies to that particular share. If it doesn't move on news it is deemed to be poorly received when in reality it takes knock-out news to move any share at the moment.

Whilst this phase may still have some legs to run I feel it is the right time to be scaling into opportunities that demonstrate significant growth potential over the next few years. It was not all that long ago that companies such as HUD would at least be valued at 1x their revenues and deemed cheap. Those days will come again. In the meantime, just keep growing and solidifying the prospects of the business.

HUD only bought Beauty Boop on 8th July and re-launched it in mid-September. Prior to their ownership, it generated c. £22,000 in Q2 revenues. In its first full quarter of trading, it has increased this by 2,270%.

Such growth leads me to park such detailed concerns over how they market themselves and instead lend them my trust. Something that is in short supply right now.

@Gallmat Great prospects if one is prepared to be patient. The business is doing a lot of things right and it is clear to me how important the new warehousing is and what it can do for the business in 2025.

The devil is in the detail.

"With over 76K orders in the final quarter of 2024, the brand (Discount Dragons) was, alongside Nutricircle and Boop running at above maximum capacity in terms of fulfilment."

New warehousing was described as "mission critical" in the interim presentation and now we know why. get past that pinch point and things can really start to be pushed on all fronts. Judging the business before that event and its rollout would be premature.

I am excited even if the market isn't. But then I am patient also.

Like I said we can certainly pick fault at the numbers and indeed be a little disappointed by the lack of operational profit at this stage but Beauty Boop is only 3.5 months old. Nutricircle was acquired in April 2023. So they've only had it under their control for c. 9 months. So they are still bedding in.

What I see is enough growth opportunities ahead especially at Beauty Boop to take Huddled into profitability soon enough. I also clearly understand that the warehouse capacity issue has hindered their choices in Q4 which is a shame. But that new capacity is coming and being maxed out on orders is a healthy starting point for the future. I am happy to wait and see what comes in 2025.

This current market is all about today and at best the next few days. So it's not a true reflection of the progress the business is making.

38.5k new customers were added across the 3 brands in Q4 alone. 110,000 orders processed out of a warehouse that is maxed out between 108,00 - 120,000. The decisions they made in Q4 have been driven by the limitations on warehouse space across 3 very different brands. That starts to go away in the coming weeks.

With a doubling of the warehouse capacity they can be far more aggressive and as things stand that additional space will give them a path to £35m in yearly revenues for which they are cashed up. I am happy to wait.

At some point, the future potential will begin to be priced in. Even increasing average quarterly orders to c. 180,000 at the new average AOV of around 38 would deliver a £27m in yearly revenues.