The big picture for RHC and what investors are missing
DD
In regards to Royal Helium, $RHC.V, I think some of investors are missing the big picture.
So to briefly recap what Royal Helium - RHC.V has accomplished in the last 30months…
From their first helium discoveries at climax back in March of 2021 they went and drilled a bunch of wells. Val-Marie, Omega… They then bought out another company, Imperial helium, and their 3 helium wells. Royal Helium then built a production facility and now helium is being shipped to a liquifaction plant in Colorado (You might want to google liquifaction plant Saskatchewan and read up on their plans) Royal Helium is also a founding member of HeDAC(Helium developers association of Canada), which was formed in September of 2023.
In regards to share dilution, dilution will happen in every Junior mining company. It goes without saying. Without warrants the share count stands at 260million? I believe. Current market cap is $54million @ 20c
Dean is also a salesman. He pisses me off too. I see the comments on various boards. But he still managed to prove RHC land claims by drilling several successful helium wells. RHC even found economical?grades of lithium at its climax location. They also discovered a helium trend line between Climax and Omega wells quoted as being a “Helium kitchen”. They bought out Imperial helium and built a state of the art helium processing facility. ALL within 30months of hitting their first helium wells.(It’s worth saying twice)
Even the premier of Alberta attended the grand opening of this state of the art helium production facility. Granting RHC not only media attention but other, larger oil and gas companies have probably taken notice. Unions, pension funds…uplisting… think of what has been accomplished in the last 30months. Now picture 30months from now.
Where do I think RHC is heading?
It seems pretty obvious to me that Royal Helium went around and proved their land package first.(They never missed a helium drill) They built a processing facility and now that they are generating income, they need to expand at a rapid pace.
Either they secure a large credit facility to move forward with the project
Or
Royal will get the backing of a major oil and gas partner, maybe even North American helium going forward to get more processing facilities online.
Or
they will get bought out by a larger company.
People might think the share price is low, which is it. But find me a pre-production venture market company that didn’t dip 50% or more in the last 18months. The venture market as a whole took a MAJOR beating in the last 18months… 1100ish points down to less then 500.
Simply put the market cap for RHC is way too low considering what they are sitting on. Helium prices are going up. Equilibrium means Russian gas plants coming online… the last one caught fire 1month after starting production back in 2020? 2021? Is that really what you want to rely on to say “helium prices will go down in three years because Russia…” that makes no sense to me.
As the interest rates come down in 2024 I’m sure the share price will improve and reflect the true value of the RHC market cap.
Ignore the FUD. RHC management has done exceptionally well to get to this point.… which is get to first production and prove their land claims in 30months time. That is an accomplishment.
For comparison, look at what NA helium(North American Helium) managed to accomplish between their first production facility coming online in 2020 to today. That should give you an idea of what RHC should be able to accomplish in the next 36months.
Bullish
