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Royal Helium Ltd. V.RHC

Alternate Symbol(s):  RHCCF | V.RHC.WT.A | V.RHC.WT.B

Royal Helium Ltd. is a Canada-based company, with a primary focus on the production and development of helium and associated gases and is currently producing helium from its Steveville project in Southern Alberta. Its helium reservoir at Steveville is carried primarily with nitrogen. Nitrogen is not a greenhouse gas (GHG) and therefore have a low GHG footprint when compared to plants in other jurisdictions that rely on large scale natural gas production for helium extraction.


TSXV:RHC - Post by User

Comment by Margin321on Jan 06, 2023 4:19am
273 Views
Post# 35206198

RE:RE:new video interview

RE:RE:new video interviewSome good stuff for sure. He made it very clear that the biggest risk was production timeline. That depends on facility timeline. He seemed confident about the engineering, more worried  about getting components and stated that was not currently a problem. He did mention April May for production. In the past it has been March for getting facility installed and tested and meeting timeline of April for first delivery on offtake agreement. Now everything is "in 2nd Quarter" and May has been mentioned for first time.  Wish there was some way they could update progress as Argae systems is tracking it on theibptoject management software so we could all see if they are on track. I think he confirmed the main risk. There were some nuggets. Negotiating with another customer to take other half of Steveville provation st higher price, as high as 650/850. That shortens payback time on the facility from 2 years to less than that. Nazarre Horizontal move back to 3rd Q or later.  Val Marie and Ogema testing moved back to 3rd Q.  Implied that the banks or other banks would be ready to lend money for more modular units likely shallow climax and Val Marie once Steveville on line. Plan to have three modular units running within 18 months. Also implied that they might be able to finance a bigger facility at Nazare (if first horizontal well very solid). Also mentioned participating as a partner in a liquification plant in Saskatchewan as growth in helium production in province advanced. That is particularly important because that is also the goal of the province and there are provincial financial incentives in place that would reimburse some of the capital costs. All in all pretty positive. Does acknowledge the risk in getting facility built and production started on the timeline of now 4 months. But also does emphasize that the banks were willing to loan money in face of that risk and states the banks are getting weekly updates. 
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