Why We Seem Stuck...Like me, you may be a bit disappointed that we haven't seen more upward price movement following the recent gas analysis came out(which seemed pretty darn fantastic to me).
When I think about it though, there are some pretty obvious reasons (though I think each of their days are numbered):
1. The Market. The market is pretty terrible right now. Everything (solid and speculative) is getting pretty beat up, and I think a lot of retail money has disappeared due to increasing costs of inflation on household budgets. Geo-political, security, supply and inflations risks haven't seemed this bad in a long long time. However, the market will eventually stabilize and recover (recall how bad things seemed at the start of the pandemic, and what followed).
2. DME must prove its technical ability to produce helium. The market knows that DME found commercially interesting and seemingly recoverable helium in the ground, but DME still needs to prove that it must actually produce it (though you and I probably take this as a given).
3. DME must prove its technical ability to process helium. DME's business model is dependent upon the successful construction and operation of its own processing plant. Without this, there is no revenue. Things still might go as smoothly as we might hope/expect here.
4. Actual Output Grades. It is still not clear what grade of helium DME can/will produce in the near-term with the first processing facility.
5. Actual Pricing/Contracts. Though we hear a lot of anecdotal information about crude and .9999 pricing, we still know what pricing DME will actually get for its helium. Robert has said that he isn't going to chase the last penny in pricing (which I support), but we don't know where DME will actually end up.
6. Actual Output Volumes. Though some really thoughtful and helpful analysis has been provided by others here, we still don't really know how much helium output DME will have with the McCauley fieild (plus the contributing well from the Rohlfing field).
7. No Financial Performance yet for Initial Field. There is no financial performance yet for the initial field for analysis to extrapolate into an enterprise/net-asset value. Without this, there is no basis for the financial analyst community to conduct their typical work and provide the market with recommendations and price targets.
8. No Financial Performance yet to Model Future Fields. There is no financial performance yet for the for modeling other fields based on variations in relative gas analysis as that comes available.
9. No clear timeline yet for the second processing facility. Additional revenues will be dependant on additiona processing equipment/facilities. It seems like there is a long lead time for these efforts, but no one really knows how long.
10. Credibility of 60-70 Well Plan. There is a 60-70 well plan, but validating that will require additional successful wildcatting.
11. TSX Listing. DME is still listed on the Toronto Stock Exchange (not NASDAQ).
The good news is that each of the forgoing items will be resolved in time, many in the coming months. As things matters move from question marks to solidity, the price should indeed move. Good luck through these rough waters - keep your bearings.
HH