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He acts out the same rage on every board. Previous ID was banned so this one’s a reincarnation. Breaks the posting rules every day but seems to survive, but takes all sorts I guess. Probably increases LSE’s clicks and engagement stats.

Indeed, but listen to the bit before that for context. Her point is that the first step is further appraisal to move the CPR numbers up the scale (from C to P) so they have some proven reserves. They’ll likely need that for the off taker agreement, so I’m not expecting to see that yet in the framework agreement. Also the Chinese are finally providing proof concept for novel commercial helium extraction from water at their first processing plant. Pieces all starting to fall into place.

Good luck. Hope you weren’t ‘maxed out’ on BCE as well? 😬

TZ are not ‘funding their 17%’. It’s a free carry required by law, they make no contribution for 16% guaranteed non-dilutible equity in every mining company. If there is a contribution (additional public tax spend then they they negotiate for extra %). They haven’t done that, at least not more than 1%.

Less than £100k, might not last long

Drilling five wells and building an EPS will take quite a hefty sum so I wonder if they’ll first seek some smaller pump priming funds (literally) to prove up those optimal production flow rates using artificial lift. They could really do with some proven reserves to get the ball rolling and that kind of appraisal step could help de-risk at relatively little cost. Loans would be good although they’ll be a safer bet once they have some income to service the credit.

Here’s a summary of how it works in the Tanzanian case.

https://www.clydeco.com/en/insights/2024/11/tanzania-mining-framework-agreement

Yeah, the 16% is just the legal minimum free carry for the government, plus an extra 1%, which might reflect some kind of minor infrastructure contribution or tax concession. Funding would usually come from the national banks not the government.

I don’t see why they’d need to do anything like that to prove up the flow rates. The rig is sitting warm on the pad. They’d only need to do extended test of artificial lift with a submersible pump as a first step. But remember HE1 aren’t operating this project now, it’s Songwe Helium Ltd, so it’s Songwe that will raise equity/finance for it not HE1. If Songwe is diluted then that affects HE1 as a corporate shareholder (not HE1’s AIM shareholders).

Which part of confidence in the company is not conveyed by the CEO’s confident interview this week, where she confidently summarised the company’s confident approach to project development? Confidence is not shouting and abusing strangers on the internet. Confidence is having a clear business strategy based on phased project development, as she said, doing the appraisal work required to move the CPR numbers up the scale from U to C to P so that they can book proven reserves, as she said, and leverage finance to get the first five wells and the pilot early production system built. That sounds confident to me.

If you listen to LB’s interview from 6 minutes, she explains clearly that the first step is further appraisal, with the purpose of moving the CPR numbers “up the PRMS resource classification ladder” so that “ultimately they will become bookable as reserves” (which is what moving from 2C to 2P means). That’s the phased development step they need to secure the off takers and full scale development finance. First things first.

https://youtu.be/yEuCB4I6oDk

Https://youtu.be/yEuCB4I6oDk

Relevance of off takers to finance mentioned at 6:47

Typically, in Tanzanian mining projects, the banks would provide the finance. A future sales agreement with an off taker would provide the bank with some surety for the loan, backed by a CPR (which both the bank and off taker would need). LB also alludes directly to this kind of process in the interview. She talks about needing to ramp up discussions with off takers now, as a route towards bank finance.

If you don’t understand the difference between a 2P estimate of proven reserves and a 2p share price then you risk embarrassing yourself.

No way of knowing but it’s a very reasonable mid range estimate for good grade helium, especially given the off take location. If it’s more then great. I make no comment on share price, that’s your interpretation. I said the CRP Itumbula resource estimate would represent double the mcap in monetary terms. I don’t predict share prices. It’s a fool’s game.

The poster simply asked what the CRP estimates represented in monetary terms. I believe it’s a reasonably factual answer, at say $500 Mscf. No opinions involved. Which part is wrong?

If the Itumbula 295,797 Mscf 2C estimate (contingent) proves recoverable (2P) then maybe c. $130m in today’s off taker prices there (more than twice the value of current mcap).

For the wider licence area, if the 709,239 Mscf 2U estimate (prospective) was discovered and then proved recoverable perhaps $350m there (at least double).

It would be very unorthodox to start pricing 3U estimates as future earnings, so probably best to stick with 2C for now, and how to convert that to 2P.

"with good timing and a good guess at knowing when you reached the zenith and nadir of the prevailing trading range"

The trading range has been pretty consistently 0.8p to 1p since last September, with occasional spikes above or below.

Punter - "...nobody cares about your fantasy trades and broadcasting them to a bunch of anonymous strangers on a free public BB! ...Always smacks of low self esteem and attention seeking to me."

Also Punter - "I put in order to buy as soon as read RNS"

Also Punter - "So glad I been topping up"

I would imagine profits would be more likely reinvested in additional near to market project acquisitions as a strategy for growth.