Have to admit Market not yet buying story. Hope we are all early birds and benefit as Mr. Market catches on and catches up.
Here is why, i'm my opinion
1. Lack of capital to ramp up development. Still have $12 million of Steveville facility yet to place purchase order. Have obviously decided to postpone order for facility for shallow Climax. (another 5-10 million). Still have to drill horizontal nazare well. (7 million). Have to complete and test a ogema and Val Marie.
2. volume of gas from the shallow zones not overwhelming. Estimates at Steveville just okay considering IHC got 1/3 of the company for the two wells and we still had to come up with $20 million to produce - and 40% of that facility even ordered. The price of helium nonetheless makes those wells very economic but also incents others to develop other helium sources.
3. Nazare is really promising but is not a done deal without an unconventional horizontal drilled and tested. That will take maybe 10 million. And if successful they want a second Nazare well prior to production (another 7 million). And the monster facility to get those two Nazare wells of our dreams into production will be another $100 million.
There are many positives maybe not so evident to market including provincial lead in helium development and the fact that the province will pay a chunk of all that development through its incentive programs that are really pretty unique.
I am with Kitty and I am buying more. But I am not wrong that the broader financial world is not yet convinced - or I would not be able to add more shares at $US 0.22. This is a highly speculative issue worth a small investment if you believe (as I do) that it might actually happen (RHC grows to significant helium producer contributing to goal of Saskatchewan to produce 10% of global helium demand by 2030). But I would not put money here that is not in the speculative part of a balanced portfolio. Andrew was quite compelling yesterday about all the positives of the last four months. I think he was right to emphasize all the positives. But the shares dropped - again.