RE:RE:RE:RE:RE:RE:Royal Helium Commences 3D SeismicGood point about many junior explorers failing. But there is reward (increase in multiples rather than percentage points)in the ones that are successful.
So what to do?
1. due diligence, understand the sector and the resource and the regional and global trends affecting supply and demand. And the local environment as well, especially with respect to any barriers to mining or drilling or producing.
2 due diligence regarding management and financial structure/stability.
3. Diversification. Invest in 4 or 5 of these situations and make sure you have picked best ones possible in terms of items 1 and 2.
If you do all that maybe two of your picks will prove very successful. That is enough. If all of them go belly up then you are either very unlucky or not very good at items 1. and 2.
Royal Helium in one of my 5 picks right now in this space. Helium is in demand, NA source would be good for obvious geopolitical reasons related to resource supply chains (which is why Frontier Lithium is another one of my 5 picks), plus Saskatchewan is totally supportive and makes it easy to permit and drill wells and adds financial incentives to do that as they have a goal to produce 10% of world Helium needs by 2030.
Saskatchewan also has primary helium in small traps that can be economically better exploited. AND this Nazare zone seems to be something different an exciting in terms of massive size of the reservoir compared to previous discoveries in Saskatchewan
And management is solid from what I can tell.
Anyway I am comfortable for now that possibility of reward is worth risk inherent in any pre-production resource explorer. There are other positives and negatives in my analysis beyond these brief comments.