RE: Shambles18 Sep 2024 16:56
Newboy, Unique has a variety of meanings.
One can be that it is uncomparable with any other type of Helium Field. That may mean it is less "commercial" than other typical discoveries, making comparisons false for us to guess how valuable the resource is at this stage.
The word "commercial" is also a bit loose as it may be commercial in the sense it could take a long time (years ) to eventually get an ROI.
The fact that 20-30 drills need to be employed for it to be commercial is, due to the lack of releasing the feasibilty study making holders nervous.
Even if this worry is misplaced, where is the money to come from to do these drills?
It could be a JV or it could be yet another raise, causing a SP re-rate and dilution. Based on the current SP action that seems favourite.
The added unknown is the head scratch of buying into another company at this critical time which again, raises the question of why? HappyD, does voice the concern that it looks like an insurance policy because Tanzania might not be the gold mine we all hope for.
The market hates uncertainty and as you can see HE1, right now is on a Tri-Factor bet to the downside,
Those, imo, are the reasons for the SP fall.
As soon as the feasibilty study is released which should include costs and timelines and ROI and potential value of the assett, then the market can re-rate the stock.
(Lets hope the rerate is positive!)
Anyway, never bet what you cannot COMFORTABLY afford to lose, that way this type of uncertainty won't stress you out.