The cost of purchasing the rig, paying for site setup, security and drilling contractors might be within budget, but I'm not sure we would get more than 1 hole before cash became an issue.
I am not concerned if the rig has been out of commission for a few years. The Total Market interview stated:
"We have a rig which is identified. It is currently in a yard in East Africa. We have sent a third party rig investigation company. They will put the mast up. We're going to run it under load; we're going to take apart all of the pumps; we're going to strip all of it down to its component parts and build it up again. The purpose being it's basically much cheaper and much more sensible to replace parts while its in its yard in East Africa rather than to bring it out to Rukwa and allow it to break down there."
So the rig Audit is basically also overhauling the rig to ensure it is in good working order.
We have a rig potentially getting fixed up and we have the site identified. We can't get the contractors on board until we are sure the rig will be operational as we won't have a clear start date. The contract for that could take around a month and then the site needs to be prepared (while the rig gets moved). Q3/Q4 seems to be about right but it will probably depend on how much work needs to be done on the rig. Hopefully Sep/Oct will see the drilling start and it should only take about 3 weeks to reach target depth. Oct/Nov we do wireline testing and Nov/Dec we get flow rates and a Merry Christmas.
Not sure about a broker with good charting facilities. I use https://uk.investing.com/equities/helium-one-global-ltd-chart
If you want to save your charts, you can sign up for a free account.
It produces stuff like this, but also a host of indicators like MACD, RSI, EMA, bollinger bands etc. https://invst.ly/ycpl5
I stuck mostly to investopedia and Youtube to look at different charting patterns.
We had a nice rebound off the trendline established on 9th March. This is the 3rd time it has been tested and it seems to provide strong support. We are also testing the trendline of the peaks and this pennant seems to be coming to an end in around 2 weeks. A gradual increase would be welcome and prolong this, but the new financing may reset this a little. https://invst.ly/y8r-x
While I see this as a good long term investment, I still try to keep my eye on what could happen short term (hopefully stop me getting burned again).
We know the news we are waiting to hear, but not when the news will be released. They were looking at rigs, so that will also impact who they get as the drilling contractor. Both pieces of news that will move the SP in my opinion.
We know how much money we have available, so the rig news will let us know how many holes may be drilled. That is a short term warning flag I intend to keep an eye on. Will we be drilling just one hole? Will more funds be required if the drilling program has numerous planned drill sites? There is not the same rush to raise funds as last time so I would not expect the impact on the SP to be so severe. More funds will be required at some stage, but the SP could be in the 20's by then.
I guess after they identify the rig they intend to use and then the contractor to use it, they will need to get the contracts created and all the paperwork in order before they confirm anything. I reckon that could take 6 weeks, so not worried about any lack of comms right now. Not sure how long it would take them to get the data from the various exploratory elements together to form their drill plan for this year. They would also need to take the seasonal weather into account before drilling could start - moving the equipment, preparing the site and accommodation, security, staffing... Not to mention any local negotiations to get permission to drive through fields and create equipment storage yards with the main site.
It looks like people's expectations are high just because the price jumped. This share used to do that quite often (before Tai-1). I think it was that article in The Citizen that may have caused the jump - nothing else of note that I can see other than FOMO. And the article didn't even mention HE1.
I am not sure why the price jumped today (but happy it did). According to the 1 hour chart https://invst.ly/xuv5c, it bounced off the low trendline (red) established on 15 March and rose to the top trendline (blue) which is from the high before Tai1 results to the high on 20th January.
On the 5 min chart https://invst.ly/xuvdz, it looks like it bounced off the blue line and is now sitting around the 10.21 mark which has previously been a strong resistance point (both as a floor and ceiling). We were also coming to the end of a pennant (> made from the recent peaks (green) and the base trendline (red)) so movement was expected within a few days.
Whether the SP sticks to the blue trendline (either as a ceiling or a new floor) is unknown, but with the blue-red pennant ending at the start of May, I would hope it stays above 9p until some news moves us up.
Crazy to think we are still about 15% down on the month.
Is anyone going to be on the 2pm conference call? Surely they can't have any news that would impact SYME if we haven't released an RNS?
Not sure where Helium was in previous lists, but it looks like it may be no. 53
When the hospitals are able to get back to scanning and their normal operations (rather than Covid), then I imagine use of Helium will go back up.
The chart shows we have been bouncing along in a range for the last month and we could quite comfortably continue to do so until mid march when we cross a major trend line. https://invst.ly/xg28z (Blue line from Tai1 before the fall).
Movement continues to follow a positive trend without new lows and we are right in the middle of the 1 month hi/lo trading range. Patiently awaiting news in the next few weeks.
From the looks of the chart, we could stay around this level until next news hits. https://invst.ly/xdcit
While it is possible we could fall, there is a rising trend line supporting 10.5p and a long term support at 10.2p
We are currently testing the bottom of a trend line, but overall the past month has seen higher lows, moving us in the right direction.
The top of the current pennant pattern has us at almost 12p in a week's time and still at 11p within 2 weeks. https://invst.ly/xdclc I think the SP is quite stable at the current price - there are no negatives on the chart. Until we have news of the new drill rig and the costs for however many holes, we won't know if a placing is required. The interview yesterday stated they had north of $10M (£7.5M?), so they have money for 1 hole with a big rig - not sure about more. I estimate drill cost to be around £4M. https://www.youtube.com/watch?v=is5cVFjKtYo
If there is any news from the research that shallow drilling may be an option, then the SP should rise as those drills are quite cheap. Everything seems to be progressing well so hopefully only a few more weeks before we have some exciting news.
As I recall, HE1 were actually going to go with a smaller rig at the start, but Mitchell said that this larger one was available, which would save us money in the long term as it was suitable for appraisal drilling. This upgrade was what resulted in the last placing. It was more powerful and would ensure we got to depth, so it was a case of the wrong drill, but not as a result of not spending money.
Yup, MadMen has it. I couldn't remember if it was in one of the interviews but I recalled that DM had spoken about it.
2 holes were contracted with the 3rd for equity and an optional 4th. The results of the seismic changed the drill plans and we targeted Tai. Tai1 couldn't be tested and Tai2 was clay that stopped us testing the show.
I had looked at the Mitchell Drilling website when the rig was announced to see the specs and I don't think they had any rigs that drilled deeper or with a larger bore. If that is correct then it makes sense that we would be getting a different contractor.
You may be starting at the wrong end by investing here. You should never invest all your money in one stock, or in one sector.
AIM is said to be a casino as some companies come on the market and then tank. For safer investment, you should start with boring old funds and unit trusts, then income stocks that pay dividends before investing in more speculative areas.
Mining and oil and gas stocks are the most speculative with exploration companies being the highest risk. That said, there is also the chance of greater rewards too.
One thing to note with these shares is that it is usually not a good idea to buy and hold for a few years. You should look at the cycle of the SP at different stages of development and incorporate that into your strategy.
The most important thing is to protect your principal investment. Don't be so set on reaching a certain price that you lose the chance of protecting your capital. You may make less profit by doing so, but that is alot easier to bear than losing money.
YouTube is quite a good resource for learning about investing and basics like price/earning ratios and earnings per share. Just be sure you act on your own research rather than the story of a company. Read a few years worth of the RNS' and a few years of accounts to make sure things are moving in the right direction.
Although it mostly uses US examples, investopedia is a handy resource to look things like this up.
"Warrants are a derivative that give the right, but not the obligation, to buy or sell a security—most commonly an equity—at a certain price before expiration. The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price. An American warrant can be exercised at any time on or before the expiration date, while European warrants can only be exercised on the expiration date. Warrants that give the right to buy a security are known as call warrants; those that give the right to sell a security are known as put warrants."