Royal Helium Ltd V.RHC

video interview

[eric_a_su]

[waves1]

Great news - With this, RHC has essentially sold 99.99% of the production from the facility before it has even gone into production, plus, this contract is ~39% above the value of the first contract, meaning 39% more revenue for the same product at the same cost of production.

[Margin321]

Hard to dress it up as good news.  Production was to be in first quarter, then end of April, then end of second quarter, now" within a few months".  Will the cryogenic helium plant with unique, innovative design being built by Arjae Design Solutions of Nisku Alberta (pop 174)  actually work? I am betting it will. Not everyone is taking that bet.  I am up to 62K

[Asdfghjk]

Not really sure how the population of Nisku has ANY real bearing on any of this. Nisku is a hamlet just before Leduc. Pretty sure population totals have zero to do with quality of fabricated materials for any project really. The quality of the equipment coming out of Nisku in general is pretty damn good. 

[Margin321]

I have lived in a town of 300 people.  They sometimes lack a critical mass of complementary pieces that enhance success in highly technical areas.  Arjae has a good reputation in oil and gas systems, but to my knowledge helium processing and cryogenic plants are new for them. I hope they are wildly successful because RHC could buy a few plants a year from them if their design is great

[Asdfghjk]

Edmonton is very close. So is Leduc. There is zero lacking in that department as you stated. You took the time to find the exact population of the hamlet but didn't take the time to look at the distance from a major capital city? 27.3 kms. If they NEED anything it will be close by and easily accessible. If they had to say fly something in the Airport is extremely close to Nisku. You can see it

[Margin321]

Asdfghjk:  Thank you. I did not realize it was a suburb. NO more worries there.

[Margin321]

Asdfghjk::  Now that is resolved (suburban Edmonton location), maybe you can tell me if ADS have designed (Design Solutions is in their name) and built helium processing plants before, or even cryogenic processing facilities.RHC has said it is a unique innovative design - is it a unique innovative design of AJS engineers?  I have just been (maybe wrongly) worried that the off the shelf

[Asdfghjk]

As I have stated before in 30 years in the Oil and Gas industry that things like this hit snag after snag after snag. It's almost as if it were part of the process..... Have they? Not a clue. What I do know is that with anything Unique or one of kind itwouldn't matter WHO or WHERE it was/is being built these delays are inevitable. The supply chain has yet to fully recover from Covid BS

[Asdfghjk]

Even companies like Syncrude, CNRL, Suncor, Cenovus cannot get things done on the assigned time tables. And these are MASSIVE companies with BILLIONS of dollars at there disposal. Like I said let's see what happens. It's their own eagerness to hit these unrealistic deadlines(wishful thinking). These announcements only add to this boards speculation and anxiety. Much ado about nothing.

[scatterhead]

I think you're comment is 100% correct - however, they do eventually get it done. - RHC had best complete the first in a respectable timeframe. IMHO

[Margin321]

Timneframe is already not respectable. But more worrisome is another financing. Last one included a promise of financing in place to produces at Steveville.  Now they are pretendign this second contract adds soem costs.  They also do say the will use the new money for testing (hopefully Val Marie and Ogema)  and they could get that done in Q3 easily.  The testing at gema has

[Asdfghjk]

So we can all safely assume you have access to the financials to show us that they are in fact pretending that it will create more costs....

[Margin321]

I just have their own words.  Don't carp at me. I would apologize if being a little skeptical had been proven wrong. So far all I have done is save people a lot of money.  There has been plenty of time to get in at lower proce point. My current buy tartget is 20 cents US. February 6, 2023 “Securing debt facilities with two leading banking institutions in Canada is a significant

[Margin321]

If you notice, the "working capital required to see first production" is "inclusive of all associated  midstream and logictics costs"  to see first production. The midstream and logistics costs are a necessarfy component to produce helium. And second quarter of 2023 is not in 2H of 2023.  It is in 1H of 2023.

[Asdfghjk]

Looking at the inflationary side of things surely one could imagine original costs thought to be covered aren't anymore. So many factors can come into play driving the cost beyond expectations. My contention lies within the rampant speculation of words. Things happen try not to ride the rollercoaster.

[Margin321]

Asd:   "My contention lies within the rampant speculation of words" Is that another way of saying - it depends on what  "is" is. Usually we "we are going to move the facility to Steveville site in March and we are going to be producing and selling helium in April" means just that.  Unless it depends on what "are" is. It all gets lost

[Asdfghjk]

Does your gas cost more? Does your food and other supplies? We both know the answer to that.  Investing in a penny stock and then whining when timelines move into undesirable territory is a complete waste of time and energy. But hey it gives you something to do. Ever hear of WRN? 17 years has passed and we're still not permitted. They have RIO and Mitsubishi up there. Timelines are NOT

[Margin321]

You don't get it. If the plant doesn't work as planned there is really no plan B. Building their own innovative uniquely designed plant was a bit of a risk. There is a path to growth and success but it depends on selling helium. This is not a simple timeline issue, like waiting for the Fed Ex truck to bring the parts.  Anyway I would like to buy one of the debentures for $1000. Do

[Margin321]

The bank loan costs 9.7% interest and plus an upfront fee of  $87,500 and an annual fee of $6,000.  The 5500 debentures issued  in January 2023  have higher rates than the current ones, paying 14% interest and have warrants and conversion price at even lower prices (32 cents for the warrants and 26 cents for the conversion) Anyway, all this cost can be covered once they are

[Asdfghjk]

Seems pretty straight forward and obvious. If they don't produce and sell helium it is detrimental to the rest of the plan. Got it.

[Margin321]

We both want the same thing to happen, so we are actually on the same wavelength. I am just more worried about the obstacles they have to jump. Maybe just because I am older and have had successes and failures in investing in preproduction resource companies.

[Asdfghjk]

I do get it. I just disagree with you as you do me. Iy is what it is. Glta.