Most small resource companies never make it to production cashflow/revenue. Hex is about to achieve this in the next few months. Whilst Ingomar offers huge upside - the immediate here and now opportunity of going after cashflow via Rudyard development is the right one. This will be at a different price level come Summer and year end.Cash |
Buys coming in now after broker note increases risked valuation to 50p. |
Tipped at 26p by Jungu. |
Ah down to 15p and placing still to come. |
BigBudda,Agree, they need to get those funds in and development drilling asap. Until Rudyard plant is commissioned and the wells drilled out and flowing to sales - I think Ingomar should be put on the back burner.They need to focus on the low hanging fruit.Cash |
IF producing from three wells @ Rudyard by the end of 2025 that will be equivalent to 71p per share |
Someone posted the above on LSE chat see 76p on Rudyard alone has to be the best safest bet on aim market in 2025 |
Direct quote from the presentation,
"The results on the north actually increased the size of our, global reserves and resources from about 480,000,000 cubic feet, up to 635,000,000 cubic feet. The net revenue is $115 million to $220 million, over a 12.5 year life of field, that equates to sustained peak sustained cash flows of 15 to $25 million paid per year as profit after tax, after royalties, after Opex, CapEx and company G&A.
That would equate to post dilution, NPV per share of 76p per share, based on the value of Rudyard alone.
That doesn't include the obvious upside that we have in Ingomar. It doesn't include any M&A activity or new leases which we might acquire over the next 12 months. So this project really underlines the value of the company."
This tells us why we went UP on a placing day, cashed up, no debt, will be revenue producing within this half year, all brilliant. |
JH ... saw you mention it a while back. It was mentioned in Telegram chat and someone said they can categorically say that that is not happening. |
Blimey. Thanks for letting us know John! |
Im guessing non of you realise that on dec 14th 17M pre IPO shares @ 5p were unlocked.
Theyve been selling these since Rudyard news. Including today. Check out trade data since mid Dec
AIMHO |
Worraps
Jeepers..I’m just giving an opinion. I didn’t realise you were one of those guys who surrounded themselves with people who only agreed with them. Way of the world today I suppose.
It reminds me of that film “You can’t handle the truth” was it called a few good men?
Anyway, I don’t want to argue. Good luck. |
"There are no guarantees with these varieties Hooded Claw. Over the years, they promise the world and deliver garbage.
There is a litany of these, everywhere. A look into the history of AIM and the prices of shares will testify to that."
===============
Completely agree with you on that Sphere ... so far though they haven't spent years sorting licences etc. while throwing out billions of shares (PREM being a prime example of milking shareholders with a carrot that was supposed to be on a stick but was actually tied to the end of a train)
In 9 months they have carried out the drilling, announced a discovery and already purchased the bulk of what they need for production. The funding today pays for 2 more drills at Rudyard so all being well will be producing at a rate of $12 - 15m per year by the end of 2025.If they can achieve that with out 26% dilution to their original IPO that will be amazing going IMHO |
RtW, thank you for showing your true colours. Your posts will now be ignored. |
Be careful you don’t get caught with your pants down guys. A nice little bounce today will be followed up with a drift down tomorrow and next week.
13p on the cards. Be patient. |
These days, the wealth and health of a company seems irrelevant on the AIM market. As soon as the share price goes up on good news the short termers are out for their 5%-10% profit, so the price either stays where it is, or goes back down again. These days, as I'm so sick of the AIM games, I pick companies such as HEX, and stop keep looking at the share price shenanigans, knowing that if I stay patient, it will get to true value in the end. By the activity today, it's looking very hopeful, certainly for when Rudyard starts producing, and now fully funded. Bring it on! |
 There are no guarantees with these varieties Hooded Claw. Over the years, they promise the world and deliver garbage.
There is a litany of these, everywhere. A look into the history of AIM and the prices of shares will testify to that.
But hey, look...
This is worth a go, because you usually have some cash issues that gets in the way of the moves higher. So you get these rampy spikes up and then they get sold into as some cash fund is on its way, and even then, some continue to get diluted to oblivion. Alot are delisting now.
The thing that caught the eye here is that they have secured the funding, production is right around the corner...and they can actually miss those cash flow figures by a distance (I'm involved with too much stuff to look deeper right now so a trade it is), and this could have legs.
So this is all rather unusual and thus, intriguing enough to take a position.
I don't want to get carried away.
People don't like balanced views on these boards. You say something negative and they sit there like....you can move the price.
The market does what it does.
If the market backs this, they'll buy it and it will just keep going higher.
But it is all about the delivery.
Show the delivery and shareholders will be rewarded.
That is already alot for a speculative trade.
But watching with interest.
Go on...smash the cash in!
All imo
DYOR |
Highly speculative when they now have funds through to production ? |
Punted a few here at 15.5p. Abit hindsight but too much going on today.
There is a floor at 15p here now with those buyers backing the fundraise and they might be the one's in the market mopping up the blocks just a smidgeon over 15p so that is the stop level if this doesn't work.
But this looks like the market is backing those cash flow figures.
No idea how that follows through, but there could be some short term momentum here so a highly speculative punt.
All imo
DYOR |
Lord .. Nope I know what you are saying ... they said they wouldn't do a placing and they did a placing. Not sure about funded through to production though even being implied. |
Thomas, yup exactly how I see it. The funding was the only stumbling block to production. Now that has been cleared we should get closer to a truer value but it was definitely held down for placing. |
Looking at the chart it looks like the share price was “walked down” ahead of the placing, this is a common occurrence unfortunately, however should recover from here. |
Lord, I felt his response was fair enough as they explored that avenue and decided shareholders would suffer worse dilution.
The funding issue was never fully answered as to how long it would last and now we know. They wanted £4m minimum and decided on £5m giving a 25% dilution.
The issue of funding has now gone and Rudyard can move towards production but there is still a question hanging over Ingomar as far as their plans and timeline.
HC |
hooded claw - like you, I "can see 15p as bottom".
However, despite the placing sounding preferable to debt finance, it does further undermine Director credibility. Particularly Minchin's, who denied the need for a placing, despite simultaneously exploring - and subsequently opting - for one.
If the share price does drift lower in the weeks ahead, to my mind that'll be why. |
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