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Ouch.. Never worth taking the risk. I remember a welder too not too long ago about to weld on a pair of large nitrogen tanks. We shouted to him to stop, only to later on realise that nitrogen isn't flammable... derp; better safe than sorry!
I think the demand grows between 8-10% a year depending on the sector and seeing as SpaceX are wanting to send 1 million people to the moon and for every human-carrying ship there's a corresponding one and their main selling point is reusable rockets which need helium to be cleaned.. that's a whhooollle lot of helium that's needed. I saw a video in which a guy says for a large rocket it's costs $12 million for enough helium to clean it. Bit of rough estimate (what constitutes as large?) but gives you a bit of an idea
I would imagine though that as the desperation in the market for helium grows, the desperation to find it will grow as well just like with oil and gas. Maybe, though, HE1 can keep chuffing along until they literally do go to the Moon to mine helium there :D
Was just scrolling through old posts and saw this and had a chuckle, god I wish I bought more shares at 25p nevermind the 8p we saw a few months ago. Can't believe the net reserve there is actually 30 BCF and not 18.. Just hoping the news coming out next week regarding the flow rate is good so we can break through the resistance at £1.40ish. Damn, got to go to, Bentley's calling me about my new car.. So glad we were right!
I agree Persian. HE1 have even said that they know it's there, they just need to drill for it. The depths at which helium is present is far shallower than oil and gas, speeding up the drilling time and potentially reducing risks involved in drilling for it. At this point, I honestly don't know what else you would need to have more confidence in this. And as mentioned, this is only 18 BCF at 4%.. The P50 is 138 BCF and helium's shown to reach the surface at 10.6%. Just think about how well the market will reach when they drill for another 10 BCF, and 15, another 12, and then 20 etc etc.
I honestly think the only bad thing about this company is that I don't think I'll ever find one as good as this ever again
Dai, I thought that but I just thought you can only sell at whatever the market dictates at that specific time. To be honest, how the pricing of a stock works still confuses me
And yeah, myoung, I kind of assumed some of it was because of that. I suppose if you've invested a couple million, an instant 10% return is a good offer to have I just hope most of the selling is investors wanting to buy in at a lower price and thus, when drilling commences and positive news flows, these sell offs will cease and there'll be a scramble for buys; only a few weeks to go now!
Ah fair enough John. I have only looked a few times today but every time I did so the buys outstripped the sells and I just couldn't understand why the price had dropped, must have missed them though that helps explain it
So there was a £400k buy order placed after hours last night, that barely budged the price. The few times I've looked on here at the latest buys and sells, buy orders have greatly exceeded the sell orders and yet... The SP has dropped by 1.32p? Huh? Even now I'm seeing a £165k buy, £100k buy, £63k, £34k etc (there are some showing as buys but are negative, I'm assuming it's a bit bugged there and actually means that trade was a sell). Just isn't making much sense to me today, I was expecting the SP to jump at least a penny when that £400k order was eventually filled out this morning but nope, nada. Just find it really odd that's all
mdrake, yeah hopefully! Some of us here will be, me, if it reaches £10 I might be a quarter millionaire ;) but yeah exactly! You always have to look at the negatives and weigh the situation up but at the same time.. when will you ever see a company like this again? So cheap, such good management, incredible reserves in an ever-growing industry, so many positive indicators etc; I doubt I ever will, not one as good as this.
Like you mentioned before, from what the management have said the drills will prove successful. They've said on a few different occasions that essentially helium is there and all they have to do is drill for it. I honestly think buying in to a company like Tesla is far riskier when you look at how high their SP is (a long way to drop), the fact that they've never made a profit purely from selling vehicles and that they've already seen their competitive edge wear away considerably, with HE1 I would be stunned if they don't find production levels of helium
All I would say is buy as much as you can, spread the word and hold. I've told quite a few different people who have all bought in
We've had a few threads like this and I've always said, like Clausewitz, that £1 will look very cheap one day. Have to remember, these 3 sites that they're drilling (pretty sure it's still 3 places they're drilling even with a 4th drill being thrown in for shares by Mitchell) only equate to around 18 BCF. Many times more than the likes of Blue Star Helium, but still a fraction of HE1's entire prospective reserve of 138 BCF. £500 million mcap for 138 BCF of helium that can supply an ever-growing market with eco-friendly helium for over a century? Basically, a company that can guarantee high, solid profits well in to 2100? I wouldn't be surprised if it's hits £10 one day. It's kind of hard to guestimate how high the SP will rise since helium exploration like this seems fairly new, at least in terms of public companies, so it's hard to gauge how well the market will respond to HE1 but DME have seen a 20x increase in their stock in just 1 year and they still haven't started full production and have faaaar less helium in lower concentrates than what we have, or should have at least based off of soil samples that have shown a HE concentration of 10.6% which is incredibly high.
To summarise, I'm expecting at very least £5 one day, more likely closer to the £10 mark
Dai, yeah if I remember right DM said that they just don't have the contacts nor the time to build up contacts so the best solution is just to go to the wholesale market although.. I would expect them to change their mind one day seeing as they'll be the world's largest supplier. Would seem very foolish if they didn't, especially given the price disparity.
It would be interesting though to one day see where the SP rises to and if dividends would be paid out!
Dai, DM has said that HE1 will only sell to a wholesaler and never go direct. I think, could be wrong here, but I think he said that maybe one day that might look in to it but it'll take a lot of time and effort to build up a ledger of people to sell to. Also, $1100 is roughly the price the end user pays for the HE
Thanks for the info Trek, appreciated as always.
Persian, if I could add, I believe helium is also sold as contracts like with oil where a price is pre-determined and agreed upon for a set amount of time. I would imagine this would make it slightly more difficult to pinpoint an exact price as well
Welcome to the party Persian :) Your recent revelation regarding HE1 is the same one many of us have had over the last few months!
Others things to add are:
Most of the helium currently supplied to the market is as a by-product of oil and gas drillings and they'll slowly be taken offline over time and as Dai mentioned, the US has restricted their federal production to themselves (not sure whether any helium produced in the US is restricted for US use only, I highly doubt it given the country that the US is). On top of that, other helium up and coming players are only drilling for a tiny fraction that HE1 is. I think Blue Star Helium's best care scenario is still 5x worse than our worst case scenario.
HE1 is a company that'll be able to supply eco-friendly helium to an ever-growing market for the next century. That's a century of, presumably, straight, high profits. During which they'll explore for more helium, maybe like with oil and gas as demand grows the search intensity for helium grows too.
And since they'll be such a big player and one of the very few, I would assume they could dictate the price a bit more. I think even the price of helium is more like $350 - $400 now tbh.
The pricing is expected to go to 20p pre-drill and £1 post-drill. But remember, that £1 is only off of 3/4 drills that equate to only 18 BCF or so (the 18 is based on only the 3 drills, not sure how much the 4th will equate to). 18 BCF might be eye watering for the likes of Desert Mountain and Blue Star, but it's still only a fraction for us. And £500 mil mcap for the world's largest helium reserve? That sounds incredibly cheap. As I've said previously on here, IMHO, even £10 doesn't sound like a crazy number.
All I would say is, and this goes to everyone, buy as much as you can and sit on it. The more we all buy, the more we all hold, the more the price goes up and the more we all benefit.
Thanks for the link Dai, appreciate it. I do remember a few weeks ago the same thing happened. I believe we were seeing 8p but on HLOGF it was showing 17c/12p or something. I too will remember on Monday to compare the numbers, but like you say could be a coincidence with the round of funding ending
I don't really understand all that to be honest. Are the two markets joined? And the US and et al listings just make it possible for people in their respective countries to purchase the stock because of laws and regulations? Does someone buying stock in HLOGF affect HE1 stock price?