RE:RE:RE:.46 by FridayI'm a shareholder of RHC and I believe in the future of RHC. It is speculative but lots of reason for hoping they can be successful - the resource, the demand for helium, the support and vision of the province of Saskatchewan, Andrew's leadership, other management .
I hope the IHC deal adds something. Steveville is very interesting and I did a lot of due diligence last year and almost invested in IHC but I did not. They have been touting it as an vertically integrated operation including processing and marketing by other parties - with sales in next six months. They must have orders in for some of the long lead time pieces, we know from Andrew that there is long delay to get modular processing equipment - more like end of year.
IHC management benefits from getting shares in RHC but they won't be involved, at least at senior level. Except one board position. I would assume that some employees associated with the Steveville project will remain. What about the ongoing connections with the processing and the marketing firms they have been working with. Who has been developing.managing those partnerships within IHC - will they remain?
RHC has also been laser focused on the helium development plans of Saskatchewan. The province wants to supply 10% of world's helium by 2030 and facilitate the devlopment in the province of a facility to produce liquid helium. That is a lot to work on right there.
Does a one-off 1000 acre project in Alberta (even if a solid project) contribute to the overall development of RHC or is it a distraction. Certainly a data base of 2000 old wells in Alberta that includes helium concentrations was a key asset for IHC - but maybe not so much for RHC. RHC has a million acres and 10 fairways in Saskatchewan to work on.
Anyway if Steveville comes on line this fall and generates a lot of cash that helps fund the Saskatchewan efforts that will be good. And maybe there will be some benefit from the business connections that IHC has been building independently. And maybe some good employees that will contribute - and one good board member. But is that worth a third of the company?