RE: The real experts are very excited about the helium in Tanzania21 Feb 2024 01:48
Part 2
Thanks guys. Nowhere near as much name calling as I was worried there might be.
For the record, I am not a deramper - just ensuring both sides of the coin are shown as many posts have this sounding as though it is guaranteed to rise. I have 752,825 shares @ 1.7631p invested for the long haul so would be thrilled if this went to 20p. If it goes lower, I may add.
I do not have experience of a JV being formed so am not familiar with what should or shouldn't be disclosed. I thought that all price-sensitive information had to be disclosed. It may be that the flow rates are not deemed as being price sensitive as long as they mentioned that there was flow.
We currently have a Mcap of £83M. If the JV were to match this for 50%, would it be accepted? Would an SP of 4.5p be enough? I don't think so. Possibly for just the Rukwa area but even then I think it would need to be higher.
The ramp...
They had first mover advantage and were able to target the choice licence areas. Using historic and new seismic, airborne gravity and geochemistry data they have identified which reservoirs and sites to target. If we have now concluded the exploration part of the process, feasibility studies, field appraisal (production testing and 3D seismic) and applying for mining licences would be the next steps before production.
When originally looking to list on the Australian ASX stock market (delayed due to Covid), it had been mentioned that approaches had been made by Linde Gas, Praxair and Air Liquide. They were waiting on the sidelines (as they are not explorationists) until we hit the gas flow before arranging contracts for offtakes which means they may put up the capital to build the operation. Due to the high concentration of helium and with an appropriate flow, it was estimated that payback could possibly be made in the first year of production. A plant that costs £40M could produce £78M of helium gas every year.
Helium is a strategic element, required for defence and satellites (which is why America stopped their federal reserve auctions), as well as medical, IT and creating microprocessors. It is very environmentally friendly as it is not contaminated with carbon dioxide or a by-product of hydrocarbon production. The nitrogen can be vented to the air so there is no tailings dam or residue to get rid of.
In Tanzania, Helium does not fall under the ministry of energy and hydrocarbon code but under the industrial mineral code (alongside aggregates and cement). The royalty rate is fixed at 3% and government free carry at 16%.
He1 may be about to transition from being an explorer to a developer with a discovery. LB said in a presentation that in a success case, she anticipates being in production within 12 to 18 months of discovery.
Sign In
Follow the stocks
