Rainy season about a month away again
Don’t say it too loudly, they’ll do another placing for 10 umbrellas at £1.2m each.
Hey folks! I’m scratching my head trying to understand why HE1 raised funds with new shares a couple of days ago.
As I understand the results shares a few days ago are preliminary, and the management team is considering what are the next steps (extract or move to the next well). If the well is a success as it seems from that RNS, why not wait until the proper results are back, then the SP would go considerably higher and at that moment to place new shares at a higher price, which means more money to set up the extraction operation, and more money in the long term for everyone.
I think they just needed the cash for operational expenses & probably for the lab testing etc.
Previous raise said it would pay for that drill only, no mention of also affording to go back to Tai C - shows how confident they were really.
I think they played it much better this time, quick hit, SP didn’t suffer.
Hopefully they won’t need to raise again, depending on what route they go down.
They will absolutely need to raise again. Just look at their cash burn and the amount of money they have. It’s less than a years worth of cash, even if you look at the year they didn’t really do anything! i’m guessing a raise now is just good timing because either:
Nothing much will happen for a while and the SP will drift lower, meaning it was smart to bring money in on the spike rather than being forced to do it again on a low.
They have a smart plan for the cash beyond just funding normal operating expenses. But given they said “working capital to progress planning” that seems unlikely.
Let’s not forget they are not out of the woods yet, running out of cash is still a serious risk. Drilling and exploration are expensive, development even more so.
Helium is still a bit uncharted so using natural gas wells is a reasonable comparison.
“According to oges.info, onshore projects cost $10 to $15 million for an average drill depth of 2,500 to 3,000 meters”
I’m not trying to be negative, and obviously I want HE1 to be successful. I’ve been invested since IPO. I’ve just never been invested in a stock where the thread has turned into the mostly uninformed hype echo chamber that seems to happen sometimes. (See Arrival, TM1 etc.)
[And it’s worth remembering that as smart as you maybe with your investments (not that I am personally), there are people reading these boards and getting into stocks they don’t understand based on potentially misleading things people post here.]
You don’t know this, nobody does.
Of course people know whether a company needs cash - you only have to look at their balance sheet vs expenditure needs. Unless there is a lot of cash on the balance sheet or no expenditure needed then the company is going to need cash from somewhere…
You are being negative which is 100% understandable as you must have almost lost all your investment in HE1 if you invested at the IPO share price.
To add detail for the wider forum
From the accounts (only cash for simplicities sake), as of 30th June 2023 they had cash equal to $9.60m (USD)
Raised $8.5m, see RNS on 6th September 2023, indicated as going towards drilling
Raised $7.7m, see RNS on 21st December 2023, indicated as going towards drilling
Raised $5.9m, see RNS on 7th February 2024, indicated as working capital
Total raised - $22.1m
So they’ve had approx $31.7m cash available since 1st July, it appears likely they’ve burned through most if not all that $16.2m in the earlier fund raisings for the drilling/exploration.
From the accounts they’ve averaged spending $3.1m for operating activities the prior two years, safe to assume that’s a reasonable figure for a guess here.
Seems reasonable to guess in the ballpark $9-12m cash left, which leaves it quite tight/not possible without another raise if something like that $10-15m figure holds, especially taking into account operating activities costs (wages and all that) for the year ahead.
Won’t know for certain until the interim results, end of March it appears.
They might decide to go with a joint venture,in which case the funds they have at the moment could last longer
As with all AIM shares this is effectively a gamble. I’m dead lucky as I’m up and have recouped half my stake (chosen intentionally). But the chances are they will dilute again but they are now doing so with what is believed to be an asset. Hence the last dilution didn’t affect the share price in an obvious manner but will still mean it is not where it would have been without the additional shares. I’m hoping for a takeover which will mean a decent profit for me. If the shares spike I’ll sell enough to have already broken even then I’m just playing with profit.
If you have been in for along while it is still way below what you paid and I feel for you as I have plenty of shares in that position. I wish you good luck both altruistically and selfishly. GLA
Quite plausible, a larger company might see the opportunity to fund it partially (or fully), having an indication of what is there now.
An AIM stock I was previously invested in has an agreement like that (Atlantic Lithium), I derisked out of them and the previously mentioned Horizonte Minerals (fortunately got out before that big dilution).
So, this optimistic upward trend. When was it due to start?
When next Rns due if positive news I guess
I mean, it depends on perspective. Some might say it already happened. Those who bought 5k worth of shares at 0.0025 for example
It definitely happened. I bought mine in December last year at .0024. Currently over 760% up.
Apparently these were ‘sucker stock’…
We’re in it.
Its not going to be up on every single day, that isn’t how stocks usually work. You have your up days and you have your down days. It’s still up nearly 900% on the month so even if it drops some more, a lot of people are still in profit.
It will continue to rise, but have always said it’ll be like this but on an upwards trajectory. Doesnt mean it’ll climb and climb, just means the overall will be up with some dips in between.
What are we waiting for next? I’ve lost track. Is it something to do with what they’ve raised the money for by selling all these undervalued shares?
Independent verification it is what they say it is and I assume abit of a time line for moving forwards
God damn he1