Member Info for JAMESY1980

Such a small float here that this can fly (or bomb) in a light wind. Bodes well for price movements should we get some further news on growth.

Might want to have anothe go at your maths there Steve. It is over £20k... Enough to get yopu a little excited?

As far as we are aware the cash will be sitting on the balance sheet for now. Most likely to be utilised to fund deep geo projects. Mcap back down to around the cash level. This stock is like the antithesis of a meme stock which is a good enough reason for me to stay invested. Surely this company will find a route to turn a proven low cost low carbon energy source into a profitable business. The big attraction for me here has always been that this is a penny stock which is unlikely to dilute as it's aspirations are being funded by it's core hydrocarbon business.

This is a solid pragmatically run company with a good balance sheet. If only they could capitalise on a positive RNS with a bit of vision in how they will turn their deep geothermal strategy into some form of return. The potential is good and the risk is low, but they need to comunicate more effectively.

MT - Apologies - you are right. I scanned the RNS too quickly earlier. My point still stands that this is a minimal discount so preferable to straight dilution raise. I assume that the costs of the dual listing will not be insignificant, but still preferable IMO.

£5-10m at minimal discount is not insignificant and a confident pitch at such a small discount. Companies often appear to carry out significan fund raise prior to releasing good news. Suspect it is quetly inferred to the bigger players to ensure takeup. I'd like in below 0.15 if I can.

So basically this will be close to a 50/50 listing UK/Australia? Existing investors loose half the company but the company gains £20m. I don't know much about the Australian market, but that seems like a reasonable deal for holders. A raise here for the equivalent of most of the MCap would have needed a steep discount. Added to my watchlist.

I read the RNS as a negative this morning. £100k from the heath board who were already using it isn't particularly encouraging.

On further reflection, I feel that the RNS could have been a message to potential buyers - not only are our trial location buying more, our test is laboratory standard and cheaper than lab testing! I suspect that it will take a lot more patience as each NHS health board will have their own procurement and financial signoff processes and training however minimal will need organisation, but as others have said one or two more jumping in will increase the pressure on their peers.

Some progress or sales beyond UK would be even better. Still good for a punt at £17m Mcap IMO. 12 months cash runway will be extended by any revenue however small and time can only improve the situation. The bariers to market entry suggest direct competition is unlikely in the short term so the biggest risk would be an commercially aggressive lab solution which seems unlikely and appears to have been challenged in the RNS.

I am pleased with the reaction to CEO change as I didn't translate as a positive RNS. I thought Cheek did a good job of pulling the raise together, but I may feel differently if I was a LTH. A third of something is better than all of nothing...

Do GDR carry ring-fenced tax losses or do the tax rebates null these?

I agree that there will be significant oil and gas usage in 20 years but I don't believe that Star have suggested that they are letting oil and gas go. They have in fact pivoted recently to increase focus on the efficiency of their 'Core' business. Almost every company in the energy space is looking for opportunities in renewables and decarbonisation. This isn't for moral reasons - it will be a huge growth area for those that get their strategy right. Who/what will win is anyones guess, but I reckon that at a £10m mcap, Star offer a low risk future of energy play. I suspect that Mcap would rise if they binned their transition strategy, but it wouldn't interest me in the same way.

Net cash position improved by £2m in 6 months. I like the strategy of using profits from the hydrocarbons to fund deep geo investment. It's as low risk a punt as you will get IMO with the potential to multibag on progress/news. Not much to get excited about in that update, but I intend to continue adding at these levels as £10m mcap seems low.

3rd time lucky?

https://www.bbc.co.uk/news/articles/cd1jrvzx11eo.amp

Without hydrocarbon production to sustain it, any smaller company trying to break into this market would have gone belly up. Probably why Star picked up GT energy on the cheap.

With Labour's 'party of energy transition' rhetoric and the might of SSE behind this project, it feels like the ducks could be lining up at long last. Way more upside than down here IMO.

The market appears to have been underwhelmed by results and doesn't seem overly keen on deep geothermal. I see this as a pragmatic and well run company with significant upside from a £10m mcap, so I'm building a decent holding. Geothermal is a proven technology in many countries but it seems relatively heavy on up front asset costs. The penny will drop soon that electrification with renewals is not the answer for space heating and industry. I'm positive about hydrogen, but if will take a lot of time and money to make it economically. I can't see significant downside here. GLA.

Sludgey - No one is locked in - you are only locked in if a share is suspended. GDR has just had a successful placing which gives it a comfortable 12+ month cash runway. It has good products and the likliehood of positive news over the next twelve months is higher than negative news. The real question is when the commercials will come together. Even by the company's projections, it is likely to need more cash from some source before it is wiping it's feet. This will be disasterous if it is further dilition without any positive news and if it hasn't started to generate some cash, but on balance I think it is a great bet at this level. I wouldn't put the house on it, but the upside is very attractive.

The sea of red is clearly down to the ticker on LSE which doesn't work very well with tiny SPs. It is easy to differentiate the buys from sells looking down through the trades. I tend to look at the larger trades and whilst there are clear sells, I think there are more substantial purchases. Although I didn't expect this to drop below the issue price, it is following the pattern of HE1 which dropped from 0.25 (issue price) to 0.19 over the days following dilution before they dropped a positive RNS and it rocketed. I'm hoping for a re-run of this with GDR and have to much FOMO to risk trading as this could be a one off opportunity. This remains a gamble, but you have to be In it to win it!

Slacker - go check out what the CEO of HE1 purchased in their recent company saving raise with a similar dilution at even greater discount... Spoiler, it was £5k and it 8 bagged shortly after!

A pitiful contribution can be a sign of a lack of confidence, but it can also be a defense against post raise accusations of profiteering. I'm sure Cheek and co will be getting their backs scratched...

Roger - Mcap was comfortably over £10M when cheek took over and sat there for some time. I was referring to the period since Cheek stated the 'going concern' words. On April 4 it hit 10p and closed at 7.8p.

We are on the same page in terms of believing this has been walked down for a purpose but you are somewhat underplaying the scale. I know it isn't what many are looking for but I'll be quite happy to see 2.5p in June.

Weird logic Roger. The reason that the Mcap is so low is because the expected dilution and risk of not securing funding is factored in. Not sure how adding cash onto today's Mcap would be the market acting fair? The Mcap has been over £10m since Cheek has been in place and also since his RNS around the cash flow challenges. Successful fundraise with associated 12 plus months cash runway should put this easily back in the £10m-£15m territory if the market were fair, but we know that isn't always the case. £15m would be a decent floor to build some good news from...

RNS is a good sign IMO. They want the funding to suceed. The whole thing isn't a charade to take private for peanuts which had crossed my mind.

MIKODX - not sure what you are proposing, but GDR have stated they only had 7 weeks of cash runway. The SP before they announced the placing was 2.8p. How would you have got to a 3p placing for twice the MCap?

It is 400m new shares, not 400k and also worth pointing out that that is a minimum. Taking all of the headwinds into account, I'm taking up my full placing allocation and also buying below 2p as I think it represents a good bet from here. I believe the SP will stay over 1.75p, the placing will be successfull and the SP will recover to 2.5p without significant news, i.e. and MCap in the £12-13m ballpark. Ive been wrong here before but that is where my money is regardless. Good luck.

MIKODX - A very naive suggestion from someone with 3k posts. Can you think of any example of a company raising more than twice it's MCap at a minimal discount? Crazy...

I believe that the placing is as well constructed as it could be taking the preceding position into account. An unsuccessful placing of any form would be a very fragile place to be for incumbent investors.