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Desert Mountain Energy Corp V.DME

Alternate Symbol(s):  DMEHF | V.DME.WT

Desert Mountain Energy Corp. is a Canada-based resource company primarily focused on the exploration, development and production of helium, hydrogen, natural gas and condensate. The Company is focused on helium extraction from different raw gas sources in an environmental and economical manner by supplying elements deemed critical to the renewable energy and high technology industries. Its Holbrook Basin Helium Project comprises more than 1000,000 acres of key helium prospects under lease. Its West Pecos Slope Abo Gas Field and gas gathering system is located in Chaves County, New Mexico. The West Pecos Gas Field encompasses a vast infrastructure, including 188 wells, over 50 miles of gas collection lines, and 77,000 acres of oil and gas leases. Its secondary focus is developing hydrogen assets located within their helium fields.


TSXV:DME - Post by User

Comment by tylerod1on Dec 04, 2022 8:58am
233 Views
Post# 35149280

RE:RE:3 Stock Price Questions

RE:RE:3 Stock Price QuestionsThere are too many unknowns right now with flow rates, reserves, actually sale #'s, plant 2 , dividends etc etc. Below is a chart for revenue projections for plant one and two and what SP should look like if fair valued. This is assuming 8x earnings and 85% margin. If the price drops below 2000MCF expect margin to go down. I think 8x earning would be very conservative for year 1 with considering we'll still have a lot wells in our pocket that haven't been put online yet and a 70ish well target.   I listed the plants in "ranges" based on where i think revenues could land. Where i think plant 1 will land is somewhere between 125m and 175m. That of course means you would need to drag plant 2 further up the chart. Plant 2 i expect have more revenue due to the other rare earth gasses and pressures around well 1.  I don't have plans to sell anythign in 2023 but anything north of 30$ might entice me to take a small slice off the books. 
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