The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Looking over the RNS - I see it is believe to be open at depth. I noticed the gold intersection of KVDD0034 appearing thinner and on the lower end (g/t) of viable grade for underground mining. Is this indicative of nearing the end of this step of the ladder or is it just a result of the dip/azimuth at the intersection of 0034?
I noticed the sulphide is still elevated at 240m with trace gold, silver and zinc. So perhaps it’s just a more sparse zone and indicative of further gold deposit similar to that of 177m at KVRD0031.
Interested on thoughts.
@Dai Takes me a while to wake up without a coffee unfortunately!
I've always been pretty chilled about HE1, belief in the project and team to bring in the 2022 campaign seems to have saved me some sleepless nights other haven't avoided.
@Dai - Sorry, I don’t know. MW was only ancillary related.
2 people in the telegram have posted about the crew/camp with seemingly convincing evidence, but unfortunately have deleted most of their messages except a vague post about how HeliumOne tendered the services a couple months ago with contracts pending drill contract confirmation. I read the original posts but it was early in the morning for me over breakfast and I can’t really remember the details. Sorry I can’t provide more.
I’ve seen a fair few nervy posts about timelines etc:
The longest lead items right now are the ancillary parts and camp/crew. Having seen MWs reach out for ancillary parts a few weeks ago and multiple streams of info indicating camp/crew have been provisionally booked this is a good indication that both a rig is being secured and there is plenty of time for a multi hole drill campaign.
The latest we would likely want to be drilling is through til the end of November. We could spud mid October and still have time for a 2 hole campaign (2 weeks to drill, 1 week to test) with our big rig.
My personal belief is that if we really have to we could start mob as late as early September to still get things ready in time, as long as it’s all pre planned and co-ordinates with suppliers/crews etc.
I think this will show those who hold will be rewarded. DYOR.
@Timor I honestly appreciate the comment but if you join us in the Telegram you’ll see I’m just a regular guy unfortunately - my mining/investment related socials are pretty open (I’ve seen varying names I recognise stalking the LinkedIn haha!).
I’ve got some UG geology credits and some further links to the environmental side of mining, but anything besides that is just me putting my base level of knowledge and skills picked up from academia and applying them to the available knowledge either in HE1’s official documents/media or the surrounding academic literature.
I’m pretty active in helping to run a fair few mining stock telegrams, including He1, so feel free to come join us (I can’t link the telegram on here) - I’m one of the admins there so post frequently!
Everything I post is in good faith and is based on my experience both in the sector and as a private investor but don’t forget things I post will undoubtedly contain mistakes and you should DYOR before investing!
Just to follow that up - not to say that it would happen that way at all. But the threat of it being there IMO makes a takeover so much 'safer' for the industrial gas suppliers than an offtake agreement.
As a slightly related, slightly not fun question - If we were to sell would people rather a lower price but keep Eyasi and Balangida or higher price but sell the lot.
@DirtyDozen13 True but if you read into the deals it's pretty much always time lagged spot average which wouldn't stop them from setting up a variable rate offtake agreement with a competitor e.g Messer for the second and third train which essentially does the same thing by allowing a competitor to out price them without directly dragging the spot average down. It doesn't work in most commodities as you can (in a simplistic term) just mine and process more when there is so many providers, but would work in helium where it's much harder to ramp up production. To get a comparable example of this - it actually happens a lot in agricultural commodities (Cocoa and 'exotic' fruits especially) during unfavourable growing seasons, where the lower agricultural yield and therefore supply squeeze is comparable to being a 'rare' commodity such a helium.
@Aussie_princess I would personally prefer to see a sale, I think if the current geopolitical climate persists into Q1/2 next year and we have a commercial discovery we would be able to get a very enticing offer and do something like a 20x from current sp in ~6-9months. I would continue to hold share if the decide they did want to take it to production anyway, just personally don't think it will happen.
An offtake agreement wouldn't provide the same control over supply that M&A would bring. The format of an offtake agreement is 'x amount of y commodity for n years'.
Say Linde come in and get a 350mcf/y offtake agreement, what stops the board from building the second train and selling an additional 350mcf/y for cheaper and dropping the market? Absolutely nothing.
But then you could say they could request all of the helium output from the plant, but then what happens if they ramp up production and are producing 1+Bcf/y? Can Linde afford this? Can Linde store all this? Can Linde shift this to end-users without causing a backup in supply?
Above is just one example as to why offtake agreements aren't as favourable for the purchaser in a rarer commodity where there are very few producers who can control supply - don't forget the oil fields can't ramp up production to increase helium supply as its a fractional by-product. Hope this helps.
This project will never go through to production. If we get a successful helium discovery with a commercial grade and quantity the majors will be forced to buy out the project for 2 reasons: 1. They can't afford for a new company to come on the scene and dictate the market price 2. They need to ensure they have a reliable, continuous supply for years to come, especially with the current geopolitical landscape.
AGM will be online?