StockHawk1 wrote: I just went to the Royal Helium (RHC.V RHCCF) Twitter Space hosted by Dean Nawata (@nawatatweet), where he talked about the helium jr and took questions. Here is a summary
Steveville Plant:
- Plant has been designed and is now under construction
- Plant has a unique cryogenic helium separation method
- Benefits of this method include 99.999% He purity, 33% energy saving
- Will produce 22M cubic feet of He per year
- Will also produce gas which will power the plant
- Will also produce an estimated 20M lbs of food-grade CO2 per year (current price is $1-$3/lbs)
- The first He delivery to the offtake partner is set for April 2023
- Should produce for 9 years
The ground has been broken at Steveville to build the plant. Prep has been done on-site, however, most of the construction is being done off-site in module mobile units. With this the plant will be able to be moved and used again after production at Steveville is finished.
The Nazare Zone at The Climax is expected to be the biggest Game Changer for RHC:
- Resource area is >30 square miles,
- Estimated to contain 1.3 billion cubic feet of He
- Estimated flow rate is 17M ft3
- Models predict Nazare can produce 10M ft3/day for >30 years
- RHC expects to drill the first horizontal well in Q2 2023
- If the well is successful then they will build a plant that will be 5x bigger than the Steveville plant
One attendee asked why some other helium jrs have the same SP as RHC despite not having as many accomplishments. Dean said that there are several factors as to why this may be:
-Helium companies are new to public markets so there are not many metrics/standards for He companies
- Currently He companies are mostly trading based on their last evaluation
- However, once production at Steveville begins and RHC begins selling to their offtake partner, investors will be able to see a clear profit rate for RHC & it will be clear that RHC is ahead of other He jrs
Dean also gave a walkthrough of the fiscal MGMT of the company:
- RHC burn rate is about $50k per month (includes offices office space, all salaries, etc)
- Very low in comparison to peers
- RHC President for instance only makes 10k/month
- Dean himself has been involved with RHC since 2016 but only started taking payments a year ago (is compensated 5,000k/month)
The most important question asked IMO was regarded how RHC will raise the rest of the money to construct the Steveville plant.
Dean shared that RHC is looking to put a debt facility into place to pay for plant construction and equipment going forward, not only for the Steveville plant but all plants that RHC will build.
The debt facility will be non-dilutive (great for current shareholders). The practice of taking out loans for plant construction and equipment is standard for oil & gas companies. Overall the Steveille facility will cost $24MCAD.
You can listen to the full recording of the Twitter Space here: https://twitter.com/nawatatweet/status/1593369840500502529?s=20&t=7T3A8O80gVylS5pfSCMQcA
Today RHC closed @ $0.235, MC $55.113M