MSMN The Bull Case4 Jan 2025 12:36
The Bull Case for #MSMN
Jan 2nd, 2024, the share price hit an intraday low of 0.0105 before hitting a high of 0.084 a return of over 700%. The share price has fallen back to a low on Christmas Eve of 0.025 due to a delay in it’s 20% share of five Las Animas Helium drills and a capital raise of £1.5M in September.
Funding & Risks
Whilst risk of delays and funding are always possible this is offset by the following. Cash reserves in the region of £1 to £1.2M, $1.25M milestone payment in the sale of its Stanley assets, £300,000 in warrants exercisable at 0.07, free 10% ride on EP155 by Georgina Energy. Additionally, seismics and exploration could be funded by:
Under the HOA Mosman, Fullcyro and Beltway agree in principle that:
1. Fullcyro and Beltway will purchase (from the wellhead) 80% of the liquid Helium production from EP 145 ("the Offtake").
2. Fullcyro and Beltway will provide Mosman with the equipment necessary for production of Helium.
3. Fullcyro and Beltway may assist with financial support, if necessary for the project.
The Cinnabar Project in the USA with 1.646 million of BOE of reserves remains to be monetised through a potential sale.
Its recent acquisition currently generates net profit before income tax for the 82.5% interest in the Sagebrush Project in the twelve months ended June 2024, after royalties, local taxes and all lease operating costs was circa US$286,000.
Near Term Helium Catalysts
• Imminent drilling at 5 Las Animas #helium wells
• EP145 extension & transfer approval
• EP155 permit approval
• Sagebush acquisition completion
• Coyote Wash Project BIA ("Bureau of Indian Affairs") approval
• JV funding of Sagebush project would increase the speed of helium discovery with re-entry into two shut in wells or recompletion into helium bearing zones on 1 of 7 existing oil producing wells.
• Monetisation of 1.646M oil reserves of Cinnabar
January 2024 saw exceptional returns of over 100%, January 2025 promises to pass that, with all AIM stocks there is of course no guarantees and risks.