Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
That is exactly my worry. I am not convinced we will be in the high teens on discovery, low teens at best, which is shocking given the market cap will be £100m for a potential resource worth 100s of millions, even into the billion.
The market just does not seem to be wanting to rerate. Do we have that many LTH with bad experiences that on any rise, they sell?
It's pathetic. The odds stacked against us PIs all the time. If the RNS was a bad one, they would've dropped the SP very fast and we'd be left with our pants down.
Some good news for once (furthest the company has ever been) and SP stays flat.
Fron Tai 1 drill:
· Wireline logging of the uppermost Karoo indicates good reservoir potential with 15-20% porosities.
· Petrophysical analysis indicates no free gas in the uppermost thinly bedded Karoo sands associated with helium shows.
Next week wireline will be the deciding factor. We either have a discovery (needs rubber stamped which could take few months) or we don't. We need free gas at the basement level for the SP to really move. This will be the real deal in terms of discovery.
I agree very fustrating. We wait 2 years plus for a TD reached RNS and we are at 5p/ £50m valuation. One thing for sure, if we get a discovery, that will de-risk the basin and surely HE1 will have enough assets to justify a £200m market cap, taking the SP to 20p at a minimum.
Not sure whats going on here tbh but all this leads me to believe on discovery, we will be more low teens rather than 20p plus.
If we can't get to high single digits on TD and positive helium shows, then are we really going to 4x current market cap on discovery. Maybe, who knows.
But £200m on a discovery given the requirements of helium still sounds cheap. Does anyone know the value of Tai based on research papers?
· Whilst drilling into Basement, a fracture zone was encountered, which yielded elevated helium readings at the top of the Basement and led to partial losses of drilling mud.
They drilled 3 meters into basement and got elevated helium readings.
I think this could well be a discovery. The SP has been depressed for reasons unknown. Just don't understand the market sometimes.
In the case of HE1, no news has always meant bad news. I've said this multiple times and that is followed by an RNS which starts at 'Operational Update'.
But, but, but, there is no point selling at these prices, espcially as a long term holder. Most of us here 2 years ago will be heavily under water. I certainly am. I cannot wait to break even and recover the paper losses. I'll be out of exploration companies for good. Funds investments works for me, let the professionals manage my money.
Let's hope some good news is on the horizon pretty soon. Could they have restarted drilling and not told us about it?
Let’s just be careful in giving noble helium stick. This could be us in a weeks time. The RNS proves finding helium in commercial quantity is extreme difficult with a low chance of success. It is clear shallow drills are not going to suffice. If helium exists, it must be in the basement, not in lake beds.
Assuming we hit helium and 2nd drill is delayed (no one would complain), what can be done in wet season?
Can an appraisal or production test be run in the well? Or are we limited to lab tests and sitting around until dry season.