Royal Helium Ltd. V.RHC

Arjae Design Solutions

[Margin321]

Seldom have I owned shares in a company that was is so dependent on the ability of one small supplier to design, manufacture, deliver, and operationalize a piece of complex equipment, in this case a cryogenic processing facilty that can provide 99.5% pure helium to be sold to meet a new offtake agreeemnt that takes effect in less than 6 months.

Throw in the fact that they are new (2017) and small (less than 50 employees) and have never built something like this. They are growing, have skilled employees, and a good reputation from what I can tell.

I would love to see an interview with Andrew and the CEO of Arjae talking about the selection process for the contract, the resources that the company has, why they are confident (hopefully they are) that they can pull this off. If Saskatchewan is really going to supply 10% of world helium demand by 2030 (their aspiration) from mostly small widely distribute pools, then Arjae could really have a good business suppling modules like this to RHC and others. (RHC for example may need one at Ogema and at Val Marie just for next two).  Maybe Arjae could even bid on a $100 million dollar processing plant for Nazare if those first two horizontal wells on that much bigger resource do pan out. That is a stretch but maybe they will quickly develop the expertise that will be needed. 

ttps://www.google.com/search?client=firefox-b-1-d&q=arjae+engineering+alberta

[kewlmoed]

Guy you hold 60k shares “Need to see x,y &z’. You whine too much.Just hold it, come back next year.

[Margin321]

What gives you confidence in Arjae Systems? Only 60,000 shares but percentage loss can still be 100%. I try to avoid that outcome for my speculative shares by trying to handicap if they can do what they say. For RHC a lot rides on Arjae. 

[frostback]

The chosen fabricator would seem to be a risky choice of supplier given the deliverable timeline presented?    Regarding the Off Take agreement is there any indication what happens to the agreement if RHC does not deliver product by XXXX date?  I only guess but would think the agreement would be null and void requiring renegotiation which may or may not be beneficial to RHC. 

[kewlmoed]

Any fabricator, risky choice. Global backlogs, still being worked. Contracts null and void??? Really? Is there going to be a sudden surplus of helium available at discount prices in 6 months, 1yr, 2yrs? With inflation, negotiated lower? It’s not the cannabis market. Helium Evolution, five million acres stating they are basically ‘wildcatting’. Vs. The Lion Contract negotiations were doubled

[Margin321]

kewlmoed:  I do support RHC,  I am an owner.  By choice.  But it is a speculative stock and I am trying to get more information to decide whether to add more after a big fall (bump up to 100,000 while lowering average price per share substantially) or to  just move on and accept the fact I bought a speculative stock that tanked badly.  Why exactly do you think I

[kewlmoed]

Due diligence is done before you invest. Markets were tanking a week before this one did. You got caught in an overall equity sell off. Know where the markets are headed and there will be little surprise.

[frostback]

With all respect Kewlmoed… Buy low and sell high?  Will you disclose if you sold prior to RHC tanking in share price?   Your advice is sound so why would you and did you hold all the way down to the current level?  Your correct that DD is conducted prior to a stock purchase but in addition evaluation should be ongoing along the way.  My stock analysis abilities are very

[kewlmoed]

Got in @ the .22s. Market is most likely going higher near term but will be a mess until the end of 2023. Do you own DD and make your own decisions. Don’t make them based on SH advice.

[Margin321]

km: the concept of "due diligence is done before you buy" is not sound. You know that. The start of production has moved back a couple of years. Capital markets became much more dicey. The offtake agreement starting in April 2023 is a huge positive. Wondering about capability of Arjae Systems only makes sense since I had never heard of them when I bought shares. Plus adding more shares

[chuck21]

I guess you can take risks if you have no problem diluting your shareholders into oblivion.

[chuck21]

Because why would they want to use a proven system and secure production and revenue.