Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
I have been following Sibanye for awhile and I own soem shares.
They bought 20% of New Century Resources, a tailings company in Australia and then bought the whole ocmpany and integrated it into Sibanye. They also are partnering with DRDGold who does tailings reprocessing in South Africa.
Sibanye is obviously very interested in tailings reprocessing and they have also become a big player in recycling of catalytic converters and batteries with operations in US and in Europe.
I have not seen any direct information about Sibanye and Jubilee. It might make sense. Maybe Sibanye will just buy Jubilee like they did New Century Resources. Might be the best way to get a little out of this investment.
Sibanye has had major collapse of share price - but they do have ready access to capital! That will be necessary to revamp Zambia copper operations in any big way.
Amused that Sibanye has 138 Billion in revenues with 700 million shares outstanding.
JBL has 138 million in revenue ( one thousandth as much) with about 3 billion shares and counting.
How is that math going to play out. Good luck to all.
A little increase in the share price does improve the mood and a sustained uptrend would sure be nice. Still please do remember that JBL shares were at 20 pence in May 2021, at 15 pence in May 2022, and at 9.5 pence in May 2023. We still have a ways to go before total euphoria should break out.
Dai: They said they do not have a data sharing agreement about future well results. Obviously NHE cannot share well data at this point since they have not drilled a well. And you are right that He 1 has precious little to share at this time from their prior attempt.
They directly have answered this question in the recent presentation. They do NOT have a data sharing agreement about well results. They did not rule out making such an agreement in the future. They have shared other types of data, mainly about their prospects (presumably seismic and the other types of data they have acquired in their respective leaseholds).
It seems noble already have people arranged to buy the helium straight from the well. If noble has that it’s highly likely that He1 has the same agreements in place prob with the same people if I’m being honest.
KR : Hope so! But He 1 does not have an Anchor Investor that used to run Linde. They talk like midstream people are chasing them to try to get access to any discovery that they make. I am not sure if He 1 is having parallel discussions. I hope so. In the past they DM has talked about $50 million modular processing units. Obviously neither company has $50 million at the moment. The timeline of discovery to helium sales in 12-18 months is highly aggressive. It has taken us much longer than that to drill one more exploration well.
KR - good post and very reasonable analysis. I have been investing in helium for about 2 years as well. I have been thinking that "pick a side and hope for the best" was the right way to go. And both sides might win so there is that. But just very recently I have been rethinking that just a little. There is a lot of enthusiasm that Tanzania might well be a major Helium source for the world. The government certainly wants that to happen. And listening to NHE it seems the industrial gas companies are also keen to have an additional large and stable supply of helium. And the Anchor Investor of NHE (a core early investor listed as a company leader along with Justyn and Shaun and Andrew Garnett and Eddie King) is Kent Masters, who actually has a the formal title of Anchor Investor. Kent is CEO and President of Albermarle (world lithium leader and a company my son has invested in for a long time so I follow it a bit). Before that Kent was Executive Director of Linde, a huge industrial gas player with major involvement in world helium supply chain.
Anyway, I do not want to get Tanzania right - and pick the wrong horse. There are only two horses there. And there is no particular reason not to own both. I did not sell any Helium One but I added a smaller position of NHE so that now my investment in Tanzania is slightly bigger overall and is tilted 80:20 Helium One to NHE. Both are good companies with skilled people and both are targeting potentially huge helium resource. Owning both makes me less anxious that one of them could be the big winner and I might miss out. I will be happy if both of them move forward to a bright future and there is no reason that cannot happen. If I had to pick one, it would be Helium One. But I just recently realized that I do not have to pick one or the other, and adding 25,000 NHE from the Australian exchange proved easier than I thought it would be. And not that expensive. .
Thanks LW. I did consider some of those things. Even though it is 30 plus 30 million new shares, the overall share count has been managed pretty well compared to many AIM companies. There will be about 300 million shares, not billions of shares. And they have got to this point with zero debt. And they really believe they can produce helium in 12-18 months by leveraging the midstreams to build out the infrastructure. They say they have assurances of this. If they do not need more capital to actually sell helium that is quite amazing. (they will ned more money to drill additional wells).
Another factor is that the size of tranche #2 has been determined and will be voted on at the AGM. But the final pricing of tranche #2 shares has not been set. If NHE shares run up (say for success at Tai for Helium 1 for the best possible reason), then this next tranche will raise more capital more efficiently.
If Helium 1 hits a duster at Tai, that will be worse for Helium 1 (might be a fatal wound) than for NHE. Sure the NHE shares will drop but they will still have 2 lottery tickets left. So to me that is another reason to have some NHE shares, and not a reason to avoid them.
My calculus for a long time was same as yours,I picked He1 as the most likely to make a Helium Discovery. But I decided to include a little NHE. I am not sure it totally makes sense
Hi ITV, always appreciate your thoughts and your input. There are times when I should be more silent, but we all deal with our stuff. I added some Noble Helium so my Tanzania soup is now 4 parts Helium One to 1 part Noble. Just saying, still praying is a great motto for the Tanzania Helium story. (likely for most AIM stories).
Well it actually went pretty well. Liquidity on the shares is good, trades 500,000 a day up to over a million.
Bought right after the presentation. Got 25,000 shares at $US .12. That is roughly 9.6 pence or .18 in AUD. Bought the shares at a slight discount to the placing. Cost was $100 commission and 47 dollars in fees to Australian Market. So all in cost was US$ 3147 to pick up the 25,000 shares. Obviously there will be costs to sell them too, but not that bad.
I am not sure why but it just makes sense to me to have a little money on both entrants in the Tanzania Helium Derby. Also makes it a little more interesting to follow the story as it evolves. I have 150,000 shares of Helium 1 so the $ investment is roughly 4 times more. I also have RHC (Royal Helium in Saskatchewan with primary helium wells) at about the same dollar amount as Helium 1. They are having delays in getting their their processing plant up and running. And I have a small amount of DME, a helium play in Arizona Holbrook basin. So I have about $US 40k invested in the helium arena. In 4 small high risk explorers in different areas. I would like to benefit from being a little early in starting to think about and invest in helium over the last few years. Helium 1 I still think has best upside potential. But NHE is also a little more interesting than I thought.
There are other ways to invest in Helium. I passed on Regeneron and they may be first to sales. Some other Canadian companies like Avanti and First Helium in Alberta. There is Blue Helium in Colorado. A number of other small companies like Total Helium and American Noble targeting the Hugoton Field in Kansas (natural gas wells with high helium concentrations). Then there are the big industrial gas companies especially Linde but also Air Liquide. Or Air Products and Chemicals. Or the majors like Exxon but Helium is such a tiny part of their business that it barely makes a difference.
I am sure there are other ideas about how to invest in helium and I would love to hear any best ideas.
1. When asked if they could just cut Helium 1 out of it altogether if there were delays, they said there was plenty of buffer. (There is also the matter of a signed agreement). It was a little odd that their first response to that question was something like "we don't want to talk about that".
2. They sort of joked that Helium 1 drill l could shake out the rig, meaning it would be a test run in a way to get any bugs or glitches resolved, and get everything working smoothly. Presumably also it would be a trial of the testing equipment.
3. They said that the drilling crew was experienced and that the lead (I think) had drilled some of the original wells in the rift basin that had proved up their concept of the kind of traps they are going after. I don't know if Helium 1 is using the same drilling team but that would make sense. Does the drilling team come from Solori with the rig. How does that work?
4. Their wells are simple vertical wells aimed at a specific type of trap. No deviation which they think is important. The Noble wells have TD of 830 m which is less than the TD of 1300 m of the Tai C well.
5. They are going right from well 1 to well2. It is a two well program. Then they plan to retain the rig.
Thanks Keith and Josh. I listened as well. Will add a few comments but try not to repeat too much.
1. Timeline for contract signed and all the other details and have the rig on the boat is within a month.
2. They will follow the first well immediately with a second well (presumably they will have the second part of the capital raise done).
3. They plan to retain the rig to drill production wells if they make a discovery. I hope that Helium 1 also has some rights to drilling time if they retain the rig in Tanzania after their first two Noble wells.
4. They say the kind of structure they are testing is very different than the structure He 1 is drilling. They imply that it is a special structure that has proven itself in drilling oil and gas wells in similar geologies in the rift basin where hydrocarbons are present. Lorna has huge expertise in Africa as well, would love to ask her take on this and what advantages or disadvantages the Tai structure has as compared to Noble targets.
5. They seem to think they can go to selling helium in 12-18 months with the midstream companies setting up the equipment (a refurbished plant) and paying a tolling fee for their gas. Money to do that will be provided by the midstreams. They seem very confident of that. That would be remarkably quick monetization.
Hate to say it but my take after listening was that it might be good to have a little money on each horse. I put in a bid for 25,000 shares. Not that easy to buy NHE.AX in US and there are extra fees like $100 commission from my US broker and also a small 1.5 basis point exchange fee on the Australia end. Does anyone here own some Noble to as a side dish to the Helium One. Is it easier to buy in London since Australia a commonwealth country.
WWP: Good discussion. One thing not fully appreciated is the massive difference in scale between Coho and Cascadura. Coho was supposed to double production but is being held back by pressure differences at Shell facility and has maybe increased production in BOE/d by 50% over legacy production, with less impact on revenues due to low dry gas prices compared to legacy BOE/d which is oil.
HOWEVER with Cascadura we are not talking about a doubling of production but of production increasing by an order of magnitude. There will be a 10 fold increase quickly and then a doubling from there. Changes of an order of magnitude tend to lead to transformative changes in any system or any business. All the things you outline including continuous drilling of multiple prospects with the advanced SV rig and also doing development wells and infrastructure on discoveries will all be internally funded and rapid growth will continue.
For some light reading while we wait.
https://www.linkedin.com/pulse/order-magnitude-10x-can-change-everything-brian-bulkowski