RE:RE:InterestingRight now, based upon 800 BOPD, First Helium has a FCF Yield of about 50%. The MC is about $50M while the FCF is about $25M.
Comparatively, Canadian O&G companies, being significantly undervalued, trade at about a 25% FCF Yield. First Helium is a screaming buy at roughly half that cost!
Over the next year I suspect there will be at least two more oil wells coming online. Let's say they combine for another 800 BOPD leading to a FCF of about $50M. If there was a similar valuation to many Canadian O&G companies of about a 25% FCF Yield the MC would be about $200M. This would be four times the current share price. Share dilution from warrants is not factored in though.
The above analysis has nothing to do with helium. And First Helium is in the process of being a helium producer. What will the SP be by this time next year when they are also producing helium?
Consider also that the current helium shortage will be around for several years. Their land package is in Canada. The people running this company are obviously very good. And of course, the oil pays for the helium development.
First Helium is my second largest holding behind Neometals. My plan is to buy more next week. I am anticipating at least a four fold increase in SP over the next 12 months. These two companies are the best values I am aware of.
If First Helium was sold over the next few months I would expect the price would be at least $200M. And this would be a give away IMO.