Member Info for D14M0ND

Looking forward to a public apology from yourself Fadec and HopefulDave when there is one. You have mentioned this several times and between the 2 of you, both have misleading others since the mid 20s back on July 24th when the horrendous results were issued. So far, in 4 months, the SP has dropped 60% because many just look at the bullish views and completely ignoring bearish views. Tried a multiple of times but usually get the childish name calling responses which just encourages me to state it even more.

I will not put you in quite the same ramping position as HD but you do not look at the cashflow, or if you do, you are misjudging it. So you keep posting the positives and again ignoring the largest negative the company has, not enough working capital with the current revenue the company expect to generate.

But it seems to me that the majority have rose tinted glasses on with blinkers attached.

You read this board enough JJAL

I have said numerous times that I will only buy in once the placing has happened and a deal for Kansas has been confirmed. I feel a placing is coming between 5-7p before December 14th

Answered it several times yesterday

“I also explained before today that they will be lucky with a placing at 10p. With only the authority to issue 29.5m shares, they may need an EGM to authorise more and money is running out quick, especially with the revenue from ED being down 20% since RP mentioned it a few weeks ago.

Don’t be too surprised if a placing is announced soon at 5-7p”

I said 2018 and proven so in recent posts from August but suspect it will be in November.

But the way I read between the lines, it will be on or before 13th December. So many red faces like 99% on here or me on my own. Time will tell.

To cover the overheads does not include covering the administrative expenses. Yes it will cover the wages (which is the way it is written) but not the lawyers required, consultants, cost of leases or working capital for their projects.

To have around £1m now, the results for the end of September need to show around £1.8m cash with payables and receivables balanced.

My view is £1m is not ok as there is really no revenue until ED starts producing in January when the cash balance will be gone. The first months revevue and possibly the second month may cover the overheads but not after that.

They need further working capital to continue the other projects to get revenue from these also. The reference to “Importantly, the Company anticipates delivering sufficient cashflow to cover its overheads for 2019“ is rubbish.

With the overheads around £400k, which a few thinks it is high but revenue from ED with wti where it is and assumes they are successful

January £400k
February £340k
March £290k
April £245
May £210
June £180

So whatever people think the overheads are, if it is around £300k per month, ED will only cover the first few months

Around £1m tops in my view Alexios

Signs of desperation

Fadec - the RNS never said it was fully funded. Highlands has not received revenue from ED for several months and the first month hopefully will be January 2019 for the 6 wells.

With regard to “Importantly, the Company anticipates delivering sufficient cashflow to cover its overheads for 2019“ - what a load of rubbish. They are trying in my view to stop the rot so they can get a better price fir the placing.

And with regard to the Nitrogen project, does not sound fantastic as it should be shouting out about this expected revenue for 2019.

Still, at least we know a placing is coming by December 13th.

I never mentioned WD as it was so far away as I have been discussing the lack of revenue and funds for 2018 and not 2019.

My views have been based on the lack of revenue, shortage of cash and the requirement for the only revenue that may help - Kansas Nitrogen Project

But with the 261% Fib at 4.8p - see my buy in price at 5p on the next announcement - a placing and a good strategic partner for Kansas

I said single figures coming so correct.

I also explained before today that they will be lucky with a placing at 10p. With only the authority to issue 29.5m shares, they may need an EGM to authorise more and money is running out quick, especially with the revenue from ED being down 20% since RP mentioned it a few weeks ago.

Don’t be too surprised if a placing is announced soon at 5-7p

At 11.86p

Just feel that the 29.5m shares the company have the authority to authoritise may not be enough.

Placing I suspect will be between 8p - 10p generating gross profit between £2.36m and £2.95m. The nett figure will be between £2.16 and £2.7m based on a cost of 8.5%.

Feel the bank balance will be empty at the year end and need more money to progress the Kansas Project. The partner will not provide all the costs in my view and so HNR might have to provide funds to get this moving.

On top of this, even if ED supply funds at the end of January, these funds will probably just cover the administrative expenses for just the first month and the working capital will have to cover the rest every month following. The timing of the Kansas Project and the deal they agree is of the utmost importance - if this is poor, then HNR will continue to struggle.

So is the money enough? My view is NO. So they may do the same as last year and agree a deal regarding Kansas with their strategic partner and want between £3m - £5m nett. If this case, it will required a further EGM which I would not be surprised with. Time will tell

Yep - and if you bought at 79p at the high you would have £15,823, a loss of 84% - so I do not understand your point?

I was a long term investor here until RP changed his views at the 2016 AGM that ED would always be non dilutive or HNR could not afford to be able to afford to proceed with this project. Clearly, during July 2017 he was unable to follow his desires - hence HNR had no more money to proceed with more than 2 wells and so had no choice but to sell out. The company new this in 2016 and at the end of the day did quite well with it overall.

But now they need a further revenue iminenently - still waiting though - but with Nitrogen project in advanced discussions to commercialise it, I am waiting for the funding to cover this with the strategic JV partner. Not long now though in my opinion.

Your post was completely pointless RKB

They are currently a one trick pony - the $600k was for gas and oil - yes gas hasn’t dropped like oil but the gas production is a much smaller percentage compared to oil.

Need Kansas sorting

This was $76.81 on 3rd October and there have been almost as big a drop on the 10th & 23rd October.

It is currently sitting at $55.40 a drop of nearly 28% in around 6 weeks and can see the low 40s coming

When RP spoke about $600k on first monthly revenue from the next 6 wells

It has crashed through the 31.8% and 50% Fib and just about to hit the 61.8% Fib at $55.43. Although many do not agree I still feel the overheads are around £400k per month with a maximum cash balance of £1m. To cover the overheads, the wti for the first month needs to be $59.4 to achieve this but way below now.

There is good support at the 61.8% Fib and hopefully should bounce off this. If not, the 76.4% Fib at $50.28 will also provide good support at the $50, if not a triple bottom at $42.

This is very poor timing for HNR as the revenue for ED is very important as really the only revenue they really have as the water purification currently is insignificant bearing in mind there is still a cost to performing the current tests.

Clearly from the movement in the SP which I have mentioned before, they are going to struggle to get any further funds above 10p (if required) and still see single digits coming.

Such a shame the majority never listen but hand on to the rampish views that seem to be quoted on here and ignoring the overall position I feel Highlands have been in since they sold to True back in April.

Fully agree ERV but thought the accusation wasn’t worth responding to

Filter me sonic - that is what it is there for

I do not post on my investments on LSE as I said generally full of rampers usually talking tripe

Those that follow me know I mention and discuss my investments and trades quite openly on twitter. LSE just seems to be full of keyboard warriors with too many unresearched and ignorant fools

Filter me and you do not have to engage with me - simple really

Yep - and might be back in the $40s

ED is the only real revenue the company has so quite important at the moment. WD is a long time away

Still water purification will save the day then 🤣

I can give calculations every day when wti is $9 below RP’s $600k for the first month for ED but I think you can work it out yourself.

Funny how Cat thought $64.3 was a huge support level - do not know where he got that figure from but went straight through it and bounced of the 31.8% at $63.43

Not that it matters too much with the only real revenue stream getting devalued week after week. But I have said twice it hopefully will bounce of the 50% Fib which it did on Friday - but still see $55 will arrive in due course