The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
…but as a LTH who’s been snagged by this share a few times and is still nursing losses, I can’t get one thought out of my mind…what happens after this drill when they need more money? Or will that be irrelevant by then?
Any thoughts?
HappyDazes, let’s see on the raise in SP after spud. It didn’t really go much beyond the placing price on drilling after the last raise. We’ll see. If they hit something that will be a whole different story.
Possibly not a pump and dump. This has had a buy signal for a few days. Things are moving. PR being released. Trials on the way soon. Lots of news about lung infections around the world. We still need the final piece of the jigsaw, but it’s looking way way more positive and timely at the moment.
Best bit of PR we’ve seen in ages.
Yes, absolutely Brand.
And they did say at the time covid broke that their focus has shifted to that need. The Covid need is obviously still there for a product of this type, but the urgency has gone. Which surely means that the strategy should revert, become broader and take all the learnings into account to chase the final hurdle.
What we know for sure now is that it works. And, It’s safe.
Positive language doesn’t come much better than that. So what now?
Yes, very interesting strategy.
Also some information in there that stood out in that RNS:
- drilling expected to take several weeks.
So that means we also have several weeks (obviously with the drill fixed) with no weather worries as some keep suggesting.
- the first well provided further demonstration that the North Rukwa basin hosts and extraordinarily active helium system.
Extraordinarily is a strong word to use with new knowledge.
It was nice to be reminded of this in the Audit RNS…
“In May 2023 the Company completed an independent verification of the prospective resources of the Tai Prospect (Tai). The evaluation of the total gas and helium prospective resources, and completion of a Competent Person's Report ("CPR") for Tai has been carried out and issued by reserves auditors ERC Equipoise Ltd (ERCE).
The unrisked best estimate of helium estimated to be potentially recoverable from undiscovered accumulations ("2U") in the report is 2.8 billion cubic feet (Bcf) and the 2U is 212.2 Bcf across the combined intervals of the Lake Bed Fm, Nsungwe Fm, Karoo Sandstone and Weathered Basement. This demonstrates a 61% increase in the original resource estimate from the previous 2020 CPR completed by SRK Consulting (Australasia) Pty Ltd ("SRK").
The unrisked high case estimate of helium estimated to be potentially recoverable from undiscovered accumulations ("3U") is 7.1 Bcf in the ERCE report, which is a 30% increase from the previous 2020 CPR completed by SRK. The deterministic sum of the 3U prospective resource is 437.8 Bcf in the ERCE report, which is a 294% increase from the previous CPR referenced above.
These substantial increases are the result of more detailed interpretation of the additional 2D seismic data acquired across Tai in 2021 (from Phase II and Phase II seismic surveys), and the Company's improved understanding of the structural closure.”
And let’s not forget to mention the other RNS facts…
"The year ahead promises to be an exciting one. We are fully funded for our ongoing drilling campaign at Tai, the results of which will soon be published, and are funded for the follow up well at Itumbula."
Absolutely. And they have to fix the drill either way because they own it. If they want to rent this out or use it in the future it needs to be fixed anyway. Might as well do that as quickly as possible and use that as a case to show they can fix any future problems beyond this drill programme.
They also need to fix it to be able to pull the drill string out and ultimately pack up to go home. They can’t just leave the thing in the ground. It will ne fixed.
Basically a win win to getting it sorted as soon as possible. It really is that simple and no point debating much more.