RE: Helium: "DEMAND GOING THROUGH THE ROOF" -CEO.26 Feb 2024 23:48
Our fellow poster, ‘News’ gets a mention there. (ADVFN) too...
“Posted at 25/2/2024 09:26 by z1co
There are literally 100's of posts on the LSE chat over the weekend and some indeed are quite interesting and worth posting here.
Posted by news:
Ref: "The Race To Find Green Helium."-The Wired, 12.12.21 Herein, Minchin provided the market valuation of Helium One at $50Bn USD. Next Investors did a valuation for Noble Helium of Australia at $45 Bn [$4.5bn x 10] with a helium price of $450 from recall.
MASTER INVESTORS-John Cronford [Mining Analyst]:
He looks at CURRENT MARKET CAP of a mining co V E R S U S the VALUATION of the deposit/project.
So, HE1 's mkt cap is £90.9 Million @2.45p mid price, Fri, 22 .2. 24 vs $50 BILLION.
Maths: 10% of $50bn USD = $5 billion.
1% of $50bn = $500m.
1/2 % [0.5%] = $250m or £ 1 9 6 million [£1=US$1.27 FX from the last time I checked days ago.]
0.25% = $125m USD or £ 9 8 . 4 2MILLION
CRONFORD STATED THAT IN NORMAL TIMES, IT IS 1-2-3% OF VALUATION OF DEPOSIT/PROJECT.
Conclusion: At the current share price of some 2.45p [mid-price] @£90.9m, it is trading at 0.25% , ROCK BOTTOM with no
issues like HUGE CAPEX into the BILLIONS, which AIM co's find hard to raise even IF they had a TIER 1 DEPOSIT.
As I said, Lorna Blaisse joined HE! and said that it was for the potential of a TIER 1 @Rukwa. Tanz. Indeed, it is a NEW PROVINCE SCALE helium project and globally significant.
One poster asked WHAT IS THE VALUATION ---I cite John Cronford's latest Feb 2024 article using the analysts methodology which I also employ. As for Parker asking me why I use CAPS, its so that I can pick up easily the key words I want to refer to later. If , it is all in small letters, its a mass of words, which is hard to find the key points. On HC, one can use underline, dark print etc. But the facility is not available here.
DYOR, NIA. Just to show the perspective of HE1 market cap which appears NOT demanding given what Cronford said. In M & A or JV, the investment bank will do the calculations of a project's valuation depending on their method used [some use NPV etc], but Cronford's method [which I use normally] is much simplier to value and accepted norm.
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