Member Info for Legalwolf

I was initially here for CresWick, but happy to stick around to see what Queensland delivers. Hopefully, more details to follow shortly about which Rig is going where.

It's the cash position that is the problem really, in terms of having to wait until 2024. I would guess that there will be another fund raise during H2 of 2023, and so if Naheed wants to avoid raising at lower levels again, some share price moving news does need to land in the next few months imo. Not much incentive for newcomers (the wider market) to jump on board at the moment? All imo

Do we think the bottom is in here now?

Thanks AG - I think she said something similar at the recent webinar event. The results from this study will be important, but whether a preliminary study will impact the share price remains to be seen. I suppose it might depend on how much information is shared with the market about the preliminary study, as well as what other newsflow ORCP has in the pipeline. I believe the Annual Results will be due next month as well, and so the cash position will be known as well.
I will wait for both and then re-appraise from there.

It's not for He1 to comment or congratulate on NHE's farmout, at least not until its completed and only then in the context of enabling Rig contract. I would imagine that HE1 are being kept abreast of developments, rather than just sitting there in blind hope/optimism and none the wiser. All imo

For me, we need to know the details of this Q2 placing. Then the terms of any acquisition. Then re-assess our cash position and KAV in light of this all?

I believe ORCP's DFS study from Thyssenkrupp is due this quarter. One thing I am not sure about is whether it will be a final or a preliminary - the original RNS (19/1022) said it would be a final?

Yes, but have we had the bad news. Or are we still waiting for it?

Looking at the list of major companies that Prime Energy deal with, who knows, NHE could end up with a major company as farminee with the resources to free carry them all the way through to development of any discovery they make at Rukwa. Great news for them, but they will likely end up giving away a lot more than 50% eventually.
KeithOz - I don't think there's any likelihood of it being a Russian company. Both Lab Advisers of London and Prime Energy are run by British management teams. Can't see either of them going anywhere near Russia at the moment, and it would probably be very negligent of Lab Advisors to end up with a preferred bid involving a country subject to all sorts of international sanctions. Lab Advisors is also not currently showing any projects in Russia on its website. All imo

Prime Energy are run by British management and appear to have a long list of international companies and projects on their books, including US, UK and Middle East. Looks like a very credible outfit to me and would not be surprised if it’s Qatar putting the investment in. All imo

They aren't going to have an exact date, as that is unnecessary to impose, because they are no longer inviting bids, but looking to sign the agreement with the winning bid. In my understanding, "coming weeks" is normally used when the envisaged period is less than a month.
What does it matter anyway, this is excellent news and so far all the comms from He1/NHE is that they are on track for Q3 drilling, which is the main thing, and not sure there is any reason to doubt that at all now.
Looking ahead, there are three Bank Holidays in the UK in May, meaning less trading sessions this month. I can see the price ticking up as we now enter the home straight and can see that Rig contract finish line in sight, after a very long and gruelling nightmare of a wait. All imo

That is excellent news. NHE were overwhelmed by farmout interest and have selected their preferred farmout partner. They are looking to sign binding terms in the “coming weeks” and Rig contract will then be ready to sign.
This was the final de-risking piece to enable Q3 drilling meaning that both companies are now fully funded and we can finally look forward to Rig RNS being signed later this month.
Noble up on that news and I’ll be adding to HE1 tomorrow. GLA

The $200k salary (with bonus) did raise eyebrows for me, especially given the lack of exploration success (sorry, not counting the proof of concept stuff as 'success'), very poor share price return for shareholders, and in the context of reading about significant operating losses for the company, and it needing to raise cash again! Not a good look that...

JP2000 - understood. I will try to take a closer look over this BH weekend to see if I can make better sense of it. KAV raised £3 million (or £3.5 million) in November, to add to the cash they already had at that stage, and then by end of December had only £1.8 million left, and now need to raise cash in this quarter.
This year has been full of unanswered questions, and felt very different as a holder, compared to at any other period in the last two years for me.

AG - that's all understandable and entirely rational. I agree that after the DFS is out, the catalysts that we have spoken about need to arrive within a reasonable timescale, and we should all reserve judgements (whether uber positive or super sceptical) until then. Especially as the DFS is due this quarter. GLA

The original resource did NOT support a 10 year LOM. As I recall it, it was only when GCAT upgraded the resource, did they report enough gold in the measured/indicated category to support a 10 year LOM. Likewise with this high grade area, there's nothing independent to verify it, so we are left to see if the gold production and sales will now reflect what GCAT are saying about it. All imo

If they haven't collected, they why are they saying in their forward statements that they raised £3.5 million and proclaiming that a success. Should that not be £3 million?

My worry is how are we going to afford to pay for an acquisition AND at the same time pay for back to back drilling campaigns at Ditau/KSZ, all whilst carrying a near $2 million operating loss. If it's private investor(s) bailing us out here, then they must be coming in big?

AG - it's hard not to be emotionally charged if you think something has the potential to deliver life changing returns, and with a very high level of conviction. I know that I would struggle to detach myself from that belief, if I had it in relation to one of my investments. Who wouldn't, we are but human? Subconsciously, it would lead to confirmation bias about how I then interpreted the company, its newsflow and its BOD. Been there, done that, and got the T-shirt. I guess its part and parcel of investing. We can't truly detach the emotions and psychology that come with it. That's why they have algos and automation I guess.
Anyway, we wait for the DFS for now, and let's see what happens.

Okay, understood. Still left wondering why the cash position was so low, but will need to read the AR properly over the weekend.