The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Why, if you're all convinced we are now around 700-800m hasn't David announced the previously reported findings from 552m.
After all, it came straight from the horses mouth that he would keep us informed and clearly the showing from 552m is a very important talking point.
'Helium gas shows identified in stratigraphy above our primary targets from 552 metres to 561 metres as measured by the on-line gas chromatograph'.
Burying our heads in the sand are we?
08:00 'the drill equipment may not represent the latest kit'.
Yes, that is a concern. If the drill string breaks again (or already has) this could ultimately lead to the postponement of the whole drill at this location if it is concluded the drill is not up to the task.
What does David do then? A few options:
1) Announce a complete halt to drilling until a more suitable drill is found. (Lengthy delay ensues)
2) Start the whole drill again from another close by location trying different methods?
3) Abandon drilling here for now and go to a completely new location?
None of these are ideal solutions and would result in a serious collapse of the share price.
The radio silence since his last interview in which he stated he would keep us informed on the drills progress led me to reduce my holdings by 50%.
Today I intend to reduce by a further 25% and await the next announcement.
I fear it will be more drilling issues.
Quite Seahawk. He did say he would be updating the market as the drill progressed only last week.
At this time he'd also confirmed the sidetrack had been successfully completed, so all being well we should be way past the previously announced zone of interest and yet no update.
I smell further drill issues which would be concerning, particularly with the many negative consequences that could arise in such s scenario.
David said words to the effect of he would keep the market informed as drilling progressed.
High time for an update then on exactly what helium shows they were going through when they ran into difficulties? Depth of shows and percentage would be nice. Let's go David!
A slight delay but more positive helium shows which were also increasing at the time of the setback and at a depth they weren't expecting much.
Bodes well for main prospects.
This is a very positive update all in all and any attempt by MM to lower the price will most likely be quickly brought into.
Have to ask yourself why on earth should the board concern themselves with this any more when they can now legitimately walk away after paying off the bond holders?
After the judges ridiculous decision it should come as no surprise if they do decide to throw in the towel and fold the company.
I've folded at a loss.
GLA