Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I think as the past few weeks have shown, any major sell-offs are soon gobbled up. Scirocco sold 4m shares and the SP barely dipped. Only volatile over there because there's a far less shares available so a smaller amount will have a bigger impact. True what Golf said as well
Might be a bit of a weird one but I watched this video and thought it gives you a glimpse in to what it means to haul through Southern Africa, maybe giving you an idea of the journey for the drill equipment was like :)
https://www.youtube.com/watch?v=GslPzhFLyas&t=829s&ab_channel=VICE
I know some people aren't happy with people posting about other stocks on here but so long as it's the odd one here and there, I appreciate it. Nice to see other companies that might be following a similar road as HE1. Unfortunately, I too don't have the funds to place in to other stocks but I've saved it nonetheless.
The only thing that bugs me on here is people making 101 posts about the latest price. Yes, I too am just as giddy and excited as you but when there are some good discussions, questions, experience/knowledge being shared etc it gets frustrating see the whole board flooded with the latest price to the minute as if everyone else hasn't see it as well. Big milestones like 20p, £1 etc sure, but not every penny guys please.. It just drowns out everything else
Danny, thanks mate, really appreciate that :') My comments aren't as sophisticated or as in-depth as the likes of Trek but I try to spread my limited knowledge with others when I can if it helps them get in on this whilst also helping myself and others who are already invested :) I too couldn't believe it when I found this company (I actually got the idea of investing in to helium from this video!: https://www.youtube.com/watch?v=-HN0FQ9-W3o&ab_channel=GuyMartinProper). It seems quite a while ago but was only a couple of months ago and this forum was pretty quiet to be honest; was mainly Almighty Dai with the odd Lord Trek post who have both contributed immensely to this and really kept my thirst for more knowledge/info regarding this going.
I'm just wondering if anyone has bought HE 12TMN as a licence plate haha
(Continued)
The drilling contractor, Mitchell Drilling, will take payment of the 3rd drill as shares and have offered a 4th hole as shares as well and have brought in a bigger drill at no extra cost which will save HE1 $500k and 4-6 months as they can go straight to appraisal. A massive dose of confidence
Setting up production of helium is far quicker and cheaper than oil and gas and as they don't have to drill as deep, potentially less risky.
There is a lot of evidence of there being helium present with a lot of encouragement coming from the team at HE1 (as mentioned previously). There was a study conducted in the 50's that proved helium to be present and one conducted with Oxford University (alongside HE1) which also proved helium to be there. At least one independent analyst company was brought in who also backed up these claims. There has also been small-scale helium extraction in the area before. As mentioned before, helium is seeping to the ground at a concentration of around 10.6%, far higher than DME's concentrations and magnitudes more than traditional helium supply streams from oil and gas which may be circa 0.5% max.
The 3/4 test drills they'll conduct is expected to see the SP rise to around 88p I believe after the recent dilution. This rise is based off of 18 BCF which itself is based off I believe a lower concentration (I think Dai mentioned 4%? Not 100% there), so there is an incredible potential upside
Sorry for not being 100% certain on things, I read a lot on this board so it's hard to remember small, fine details sometimes that are sometimes pretty well hidden :(
This isn't a complete list but just items I can think of off the top of my head:
Pros:
Helium supply running low, America has restricted their largest helium extraction plant for federal use only which contributed heavily to global supply
HE1 has the largest helium reserve in the world, with a P50 of 138 BCF and a P10 of 521 BCF; in comparison, Blue Star Helium's P50 is 3 BCF and their P10 is 6 BCF (even their best case scenario is 5x worse than our worse case scenario, and they've seen a 1000% SP price increase) and DME's is probably not much more.
Global demand is growing at a rate of I believe around 8-10% a year depending on the sector with this expected to rise considerably because of the likes of SpaceX who need helium to cleanse the fuel tanks of their reusable rockets. If Elon wants to make his dream of 1 million people on Mars come true, that's going to take an enormous amount of helium. One Starship launch will probably consume at least $12 million worth of helium (that's a number I gathered from a video linked here by Dai where they mention how much it costs for rocket launches in terms of helium). Also, bare in mind, for every passenger ship launched there'll be a supply ship launched as well.
Supply will be even more constrained as most of the helium extracted at the minute is as a by-product of oil and gas extraction which will slowly start to go offline over time.
Price of helium has jumped massively in recent years and even the high wholesale prices are no match to the end-user ($300 - $400 wholesale compared up to $1500 end-user price). So this trend may continue.
HE1's extraction will involve no release of hydrocarbons making it a more attractive investment for the modern investor
HE1 holds 100% ownership over their licences which span 4500km2, far, far more than their competitors
As Trek mentioned, the Tanzanian government are very much behind HE1 and have said that (paraphrasing) "we need a good new story, and Helium One is that good new story"
The data/evidence for helium being there, imo, is over whelming and from what how DM has talked HE1 have no concerns whatsoever about there being no helium there nor that they won't find production-levels of it and have also said "we know the helium is there, we just need to drill for it".
A part of this data is the fact that helium has been found to be seeping to the surface at a concentration of around 10.4%, magnitudes more than from traditional oil and gas and higher than DME (Desert Mountain Energy), who I believe found concentrations of 7% and 4%. Also bare in mind that DME have seen their SP rise from around 0.2c to just under $4 in slightly over a year and they have a far, far smaller reserve than what we do.
Wow! Thank you for the shout out! I'm humbled :) I came on here originally to share what knowledge I had gathered as I had done some good research regarding HE1. Now, though, that research is pretty well known but the likes of Dai, Trek, Noob etc have far more in-depth knowledge and experience regarding what the drilling involves, what the company will do next etc. I try and chime in when I can, if not I stay quiet :)
However, I'll post some links and info here that I've posted before:
http://www.helium-one.com/wp-content/uploads/2021/03/21-02-26-Helium-One-Presentation_Feb21.pdf
https://www.mercurycarbon.com/wp-content/uploads/2019/09/MCC-market-report-for-RHK-conference.pdf
https://twitter.com/Belcourtoi/status/1374309150944071682
Thank you very much to everyone who's replied, I read all of your comments :)
I've attempted researching companies but it seemed coming here and asking for people's experience would be best unless I spent a couple of hours finding dozens upon dozens of stocks and researching each one a bit to understand where each one is at.
HE1 has just made me curious whether there are more gems out there that after some good fundamental research (which I love doing) can be unearthed, although I feel I'll never find one as good as this again at such a cheap price.
I'm just wondering whether to continue with searching through AIM stocks in the future, I'm not really in to buying in to the likes of Apple when they're 5% of their ATH just because a new product is coming out for example.. I suppose at least with AIM stocks the risk can be negated by the fact that you don't usually have to put much in for a good return!
Thank you for the replies again guys, much appreciated :) Hopefully one day I'll be like some of you guys, able to chuck £50k here and £50k there not just a few thousand!
Bit off topic, I know, but I've Googled it with no good results and I've noticed that there's people on this board with a lot of past experience with AIM stocks so I'm just wondering.. How many AIM companies are successful? As in, they are successful in finding enough of whatever resource (for example) they're looking for their operation to viable and thus see their SP rise? (I know not every AIM company is involved in mining, just seems to be a lot).
Just wondering if investing in a select few different AIM stocks in the future would be a profitable move or whether HE1 is a pretty rare exception, thanks guys
Exactly, raise enough now to see them through (had to be done now or else by the time they've finished focusing on the drilling it would be too late I would imagine) and then raise more funds at a much higher premium and thus not having to dilute the shares as much. Plus, as DM said, some of the $12 million might go in buying shares
9 http://www.helium-one.com/wp-content/uploads/2021/03/21-02-26-Helium-One-Presentation_Feb21.pdf
10 https://www.mercurycarbon.com/wp-content/uploads/2019/09/MCC-market-report-for-RHK-conference.pdf
11 https://twitter.com/Belcourtoi/status/1374309150944071682
:)
Not a chartist, just a rookie fundamental investor but I did notice as you say we had resistance at around 14.2p and support at around 11.5p. The push past 14.2p is probably partly why we've reached close to 16p. I'm expecting some small bits of good news to flow regarding the arrival of the drill rig, commencement of drilling etc that will help to push us past the next resistance. Except from that, I don't really buy in to technical analysis on stocks but.. I wouldn't mind a 22.6p top pre-drill :)
It's looking promising that we will Persian, just have to break through this resistance we're at now. Hopefully all of the forward selling has finished; that's what's been dragging us down this past week and the share dilution the week before. 100% will happen before drilling though, the looming deadline will be a good catalyst for investors looking to get on the train before it leaves the station.. or the rocket for the Moon!