Member Info for Blubay

They’re going to announce an acquisition, which given their mcap must be very small, probably a licence area. It’s normal practice on the Australian exchange to suspend and avoid manipulated trading pending announcements.

BNL voluntary suspension extended until date of announcement or until 27 December (normal practice for ASX)

https://www.bluestarhelium.com/wp-content/uploads/2024/12/61244290.pdf

HE1 has to file financial statements with the FCA because it’s a listed publicly traded company but I don’t think it’s obliged to file accounts with Companies House.

Sorry my oversight, as mjapac points out, it was a very small and unrepresentative vote with only 107m votes for and 141m against (less than 5% of eligible votes), and it was only an advisory non-binding vote anyway so probably voter apathy trumps and they just move on?

Many possible reasons, either minor or major. It could be about presentation, transparency, omission, error, methods, assumptions etc. The consequences aren’t trivial but I think it’s relevant that Resolutions 2-4 passed. If there were any serious concerns about the auditor or the board members then they wouldn’t have been reappointed by the same voters. It could be a warning shot by activist investors, but 50% majority is a lot to mobilise against board recommendation and would require some degree of conspiracy theory, I think. In conjunction with the withdrawal of 5-6 and the lack of any surprise or discussion it felt like a prior understanding. Why is another question but probably we find out soon enough, either another meeting or a bigger corporate change in the offing. Never boring in this share 😂

I doubt Zoffy has ‘masters’, he’s just short and leveraged, so he makes a profit multiple on each point the SP goes down. Hence he talks it down, no mystery. At least he’s honest about the charade. Many others posting here aren’t.

Don't tell other people what to do with their money, and never trust anyone who does, DYOR, make your own choices

Acquisition news tonight from BNL before Wednesday trading resumption

Actually I bought more on back of the positive outlook. The point is just that it is farcical to invent ideas about billions per year on the basis of the numbers available to the market. All we know is that the estimated project budget and that the company has modelled positive economics on that basis. We know it's potentially an unlimited resource in total but we also know there are limitations on how much they can realistically get out of the ground per day. All we know so far about those limitations are the results from the EWT. If you project those results across 25-30 wells then you have perhaps a clue, but again that's a very big assumption to make without access to the modelling.

The project budget estimate of $75-100m includes drilling 25-30 wells and building the gathering infrastructure, as well as the processing plant. In a previous Q&A he had suggested internal estimates of around $50m for the plant. And you're right, you simply cannot estimate production volume from the cost of plant. You could make some guesses about the total project budget yielding positive economics over time, e.g. over a ten year mining licence period. I'm not sure we can guess anything really beyond the very bare minimum that $100m net revenue might perhaps be somewhere near break even point for the project (after tax and financing costs etc). What there is to earn on top of that and over what timescale is still anyone's guess at this point I think.

Could you explain how you worked that out?

Thanks Pete, that all makes good sense in context of Tanzania. In general, I would take it as a positive that MoM are retaining hands-on controls in the project development. Guarding their slice of the pie usually means the size of the pie is well worth slicing.

Not if it’s under $100m

For anyone who is still confused…

HE1 is currently cash liquid for 12 months.

Operations planned for Colorado are fully funded.

Revenue from Colorado is due to start first half 2025

Future operations to expand Colorado are then self financing. Thats 20-30 commercial wells.

The drill rig in Tanzania is available for hire.

Commercial development in Rukwa assumes project funding, banks not placement funding. That’s another 25-30 commercial wells.

No share placements are currently planned.

Following the AGM votes, the BoD currently has no authority to make share placements without shareholder consent.

I agree the failed/withdrawn meeting items require clarification, caution is always prudent, but in terms of adding confidence to existing holders, several commitments made in the meeting suggest the commercial strategy is on track and unimpeded. I do sense a bigger shift in the background not yet disclosed but we’ll have to wait and see. There might be a disagreement with a major shareholder or there might be another explanation.

Some key points from the AGM (correct me if I misinterpret)

Financial position - cash reserves to meet all current obligations for 12 months, including current operations

Share placements - BoD can no longer issue more shares in the coming year without shareholder agreement

Share price manipulation - aware of rumours but not aware of any illegal practices or formal complaints

Mining licence - ongoing dialogue with the government, heading in the right direction, no deadline for decision

Feasibility study - in confidence with the government until licenced

CPR - will be needed, seeking to appoint an appropriate reserves auditor for a novel geological play

Rukwa project budget - engineering estimates total $75-100m for development of 25-30 wells and plant

Project funding options - in discussion with banks and potential offtakers, can only be progressed after licence award

Drill rig - warm stacked and staffed, available for hire in Tanzania, in early discussions with a provider

Colorado acquisition - was planned before the Itumbula EWT results, fully funded, focus on cash flow in year 1

Other projects/operations - none planned currently

Company strategy - open to further project opportunities to become a global helium supplier

"I need them to get to the point where they can start to generate revenue"

They are already at the point where they can start to generate revenue in the next 6 months, which is already funded.

Yes, it's possible, they'll just need to consult and understand the objections before responding and bringing it back

All the business information strategy and information in the meeting was very bullish but administratively they now need to respond to the Item 1 vote, as they can't proceed without receiving the annual accounts (even though these were independently audited, and the meeting confirmed confidence in the auditor, as well as the chair). It's a bit of a mystery, either someone has block voted the wrong way by accident, or the registrar has miscounted, or some short interest has sabotaged the vote. Even then, how could there be more than 50% against without collusion? No-one even raised a question about the accounts at the meeting, it seems bizarre. They'll now have to reconvene the AGM or call an EGM (I suppose it's also vaguely plausible that it's all a cover for calling an EGM following other pending news that didn't make it before the AGM date, but that would be highly speculative and somewhat Machiavellian).

The advice was legal council within Tanzania and the implication was that the details of application reside with the government under consideration and should not be disclosed prior to decision.