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A bounce off the oversold imv

On the move on fairly low vols.

Another strong day for Gold and Silver

https://www.kitco.com/news/article/2024-09-12/gold-prices-push-record-highs-bullish-fundamentals-charts

Silver still a long well off its ATH.

Shorts tried for about 15mins to curb the fun at US market open as they have done for the past 2 sessions.

However this time the price just moved higher on buying strength.

Needs to break $30 and hold.

If $30 ends up as new support It'll set up a nice run higher.

If it hits resistance at $30.... it'll be back down again. Strong support at $26 which we wouldn't want to see broken.

Could be an interesting few weeks ahead.

Unbelievable the total cost expenditure on those drills since IPO.

Anyone would think they are hiring deep-sea offshore rigs with highly specialised teams working in tough / remote off shore locations. With shipping, pilotage and daily helicopter transportation costs

Not, flat easily accessible land based walk up targets.

Then all those multi million cash payments to simply retain the licences in good standing

Compare with the relatively modest drills cost for some of fhe other helium plays.....

No where near the cash sent to money heaven.

He1 Purchased their licences from (SCIR) - Scirocco Energy

..... even though they have recently de-listed

You can still read the comments on their bb and their RNS

Some happy holders over there :-)

Kev,

I think if I remember correctly He1 paid £500k for their Tanzania licenses.

Looks like all those that were involved from the outset (pre-IPO) are long gone now.

Ended up being a decent day trade for those grabing some around the high 2's lows for a intra day sell above 4p+ a few hours later.

Drop first thing of 54% was probably overdone.

Jobbers making a decent coin here today.

This is how the fiat system works.

When worthless bits of paper are issued and you are told that you can exchange a $100 bill for $100 worth of gold, the confidence in that bit of paper as a valuable means of exchange become secure so that after a period of time, folk believe that that bit of paper really is worth $100 or $500 or whatever the hell the government tells you it's worth.

When the US made it illegal for its citizens to own gold, they took in your gold and to incentives you to 'hand it over" they revalued the price of gold overnight.

Folk then tricked into thinking they were doing their duty and making a few quid at the same time handed their gold into the government....

And in return.... got settled in paper currency.

Now that's a serious RESET and transfer of wealth played out.

Eventually the hard assets always find their way back to the top and the poor get mugged of their hard assets.

Getting a bit political here, but thatchers right to buy lifted a generation out of the system for a brief period, with many of those homes finding their way back into fhe hands of the rich as cash was offered in exchange and the children of those families are back renting again.

How do you think governments could easily introduce worthless digital tokens to be taken up and viewed as a medium of exchange and store of value?

Same trick that they used with worthless bits of paper would be my guess.

I noticed the question was asked why they kept needing to raise so much for each drill.

.....As I recall seeing mentioned... There are some very unusual high costs payable to the government purely for the right to maintain those licences.

A few million per year if I remember reading this correctly?

They will need to keep regularly raising the amounts they have had too so far just to maintain those licences in good order from memory.

If this is correct, its something that wouldn't sit right with me if I was a LTH. But useful info if purely trading the SP swings and keeping an eye on cash.

When I looked into acquiring a small scale exploration licence in Zambia as a bit of fun the costs were miniscule in comparison.

In other parts of the world, once you have purchased your license area, you simply need to either commit to a minimum exploration spend over a rolling period or are forced to surrender the mineral rights.

This is to prevent large companies effectively land banking areas that they never intend to do any work on.

I don't understand why the ongoing costs on these helium licences are so high.

I've not looked too deeply into it as only ever traded it when opportunity presented itself.

Don't know if any of you contact the company, might be worth asking the question around what they have to pay each year to maintain their licences?

.

Https://howmuch.net/articles/rise-and-fall-dollar

Chart showing the decline in the purchasing power of the US Dollar over time as more and more of it gets printed.

It's like an AIM exploration Company chart.

Dilution of the value of cash at the rate of between 2-3% each year.. aka inflation.

When inflation really motors like it did in the 1970's Gold price went from $30 to $300 during that decade.

It's now heading for $3000.

To protect your wealth against inflation you can hold gold but also other hard assets, such as land, property etc..

To beat inflation you need a portfolio that returns at least double digit growth YoY.

That doest mean never holding any cash as cash can be very useful whenever there are short term dips in the prices of hard assets. But you don't want to just be sat on cash forever as its value is simply eroded over time.

When the US came off the gold standard it meant they no longer had to hold gold to back their currency allowing them to print like crazy which has supported the economic boom the average US citizens have enjoyed.

They effectively exported their inflation to the rest of the world via the petrol dollar.

Well its looking like that inflation will now be heading back to the US.

Once confidence is lost in an economy by either fears of a default..... or real default see Zimbabwe. The move into a hyper inflationary cycle.

One way to prevent this circle of hyperinflation is to peg your currency to Gold. Zimbabwe has now done this.

The BRICS nations are also looking at a potential gold backed currency.

The US would have to follow suit in this scenario.

So would the British pound.

There are many sovereign nations who have been transparent about their purchases of gold recently and even have their holdings documented in what they refer to as 'Gold revaluation accounts'

Food for thought.

Maybe the US federal reserve should be listed on AIM :-))

Each time they print more, they dilute all holders of cash!!!

Anyway...

On a much brighter note...

Once the US elections are out of the way, the Western government are almost Nailed on certain to fire up the printing presses imo to increase the money supply and that cash will need to find a home.

I hope its just a normal round of stimulus and quantitive easing or another creative name for money printing and not manufactured by some other means such a rising global tensions or threats other than economic.

Anyway, that'll bring about higher inflation which is the only real mechanism to get the spiralling sovereign debt under control.

Higher inflation = good for gold.

If the plan to inflate their way out of a sovereign debt crises then to restore confidence they will have to peg the dollar back to Gold, other countries will all have to peg their currencies (in what ever format they end up ) back to gold.

This would be transformative for the gold price which would probably need to be revalued at least 10 x its present price over the next 5 years.

Good for gold and great for silver which is probably the most undervalued commodity on the planet right now.

Agreed

They will probably do a consolidation and probably ahead of or combined with the ASX listing and share consolidations rarely work out well for LTH.

Would not be surprised when they list on the ASX they consolidate at the same time and potentially even leave aim once the very last placing has been done.

As a penny share with billions in circulation it isnt really attractive to the pension funds they will be looking to attract to their share register once they move into production and become a dividend payer.

So consolidation will likely be on the cards.

Amazing journey, but listed on a traders marketplace in London is a totally different thing to being in say mature US markets where many listings use fcf to buy back and cancel stock reducing the number of shares in circulation and increasing the company SP.

A sharp contrast to markets like AIM where things can get out of hand rapidly

E.g. VAST who must hold the world record for share issuance, then every so often when they get up into a few billion, do a consolidation, then start the whole process again.

There is however at least some kind of transparency in their MO that allows the average joe blogs trader to chance their arm for the inevitable cycle of ramp, raise, repeat that offers the prospect of quick returns if the trade is timed well, and more importantly exited in timely fashion.

It's certainly not game over for GGP, as at some stage the share register will tighten back up properly and they will move into the FTSE and GDX register at some stage and the next decade should be incredibly strong for gold and gold stocks. So remains firmly in the trading category for the near term with an eye on events to see all the above boxes ticked off before confidentiality being able to go long & strong and putting some into the area of your portfolio that you don't have to keep monitoring on fhe daily.

Can now purchase GGP retail offer at 4.8p via the brokers.

That would be a quick 10% flip at present bid.

But.

Whats the odds that they are holding up fhe SP where it is atm until the retail offer is fully filled and then as soon as the shares are available to trade the SP falling back or sub 4.8p

Biggest risk for the LTH's is if they raise again and do an IPO and share consolidation when listing on fhe ASX.

If no more raises it would just be a duel listing on the ASX.

If they want to raise more it'll be an IPO and more dilution.

Got to feel for the LTH's in GGP.

They were hoping for a 'De Grey Mining' style SP journey, but have suffered discounted equity raises whereas De Grey have been able to raise into SP strength and take on debt.

AIM can be a brutal market.

"Where dreams are made & broken"

LW was holding these.

Down 54% now.

Was a quick scalping opportunity there for a quick few % for the fast of fingers.

Gonna be a shed load of new shares hitting the market in a few weeks.

Should be some interesting price action today & price discovery over the coming weeks ahead at GGP.

It's actually a reverse takeover under AIM rules as the asset acquisition is larger than their market cap.

The re admission RNS has just landed

Pretty damn fast turnaround for a bookbuild of that size and RTO :-))

Some massive ramping.... lol

Interesting trading tactics though

Gap on the chart at 4.8p to be filled?