RE: Low tax year 1 - Low costs8 Oct 2025 08:45
OOh chill pill oldman. I have no reason to be negative about FDR, they didnt reach their target, it is still all to play there and if they try again there is another opportunity, I took the loss, i'm not whinging and I was big enough to say I had taken the loss, no problem. What I dont do is brag about the 400% made on ALRT, the 300% on CDL, 350% on Mila, 30% on Kefi from my latest buy there, 30% loss on GSCU, 230% profit on WSBN, etc. No nothing to be upset about losing a few £ on FDR. In fact overall in the last 6-8 weeks I have added at least 25% to my overall portfoliio of stocks--oh and a few thousand on a spreadbet on Gold. Now, back to being grown ups although I do understand that being a grown up on these boards is very difficult for most: I am still invested and I believe this to be a great company with a long term investment case, but I have said before that to develop, they will need cash. I have also said that the transition into initial production is not going to send the SP to the moon as the news will not be a surprise unless they achieve an astronomic deal for the gas. We don't yet know offtake agreements or figures net to HEX and we don't know what the real life production figures will be and we don't know how efficient the PSC will be and we don't know how quickly the wells will deplete, so if you are in possession of that information then feel free to share it. There is of course supporting evidence of past performance for the PSC but how the wells perform over say 6 months can only be established retrospectively. Commercial agreements will tell us +/- what we will be getting per month once we see the combined output. Figures mentioned at $2m per annum/well do appear realistic providing the wells churn out gas 365 days without interruption and the PSC keeps churning away without interruption and the trucks turn up when they are supposed to and collect the gas without interruption. Longer term there is infill drilling to boost production but bear in mind the PSC will be maxed out and a new approach will be needed for further growth which may well be covered from income or a commercial deal with an offtaker depending on what route they decide to take For example, my day job, we are building a £500m LNG storage tank and process equipment, it is being done on the basis that the customer has agreed to take the storage space for an agreed timescale and effectively pay for the tank. No way would we just build a huge storage tank, spend £500m and then hope somebody might take the space. HEX could easily do something like that with a modular liquifier and cryo storage if Rudyard plays ball and development prove it to be worthwhile and a long term offtaker funds it for a great deal on He price in return. A guess for the liquifier £15-20m. They are also costly to run, using a lot of electricity so maybe they might consider some solar panels to run it and sell any excess--who knows, Whatever happens they will need cash to gro
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