Post by
Margin321 on Feb 04, 2024 12:06pm
How does an interest free loan become a contribution
The have 16 months before payments start and that is worth quite a bit, but it is not exactly an investment in the company in the usual sense.
It is worth $240k through May 2025 and then another $520 k over the 5 years of the payoff, assuming the interest would be 6.5% rather than zero. It is probably worth double that to RHC because they could not borrow more money right now at any interest rate.
Comment by
TheBridge on Feb 05, 2024 9:55am
Margin321, thanks for doing the homework on the precise contribution. Alberta and Saskatchewan could both be assisting a developing economic activity with some type of contribution as well, but are likely focused on playing politics at this time.
Comment by
Margin321 on Feb 05, 2024 11:20am
Hi Bridge. They really have to get the plant running at the rate of 1000 mcf of helium per month. 5-6 trucks. Without it the are going progressively deeper in debt no matter what else they do. The interest burden will keep ramping if the helium production does not.
Comment by
TheBridge on Feb 05, 2024 11:59am
Margin, I'm in full agreement with what you said. If they don't pick up their revenue stream they are going to go further in debt. Somewhere along that point they just might get picked off by one of the other Helium producers at next to nothing for the regular shareholders. Reminds me of the song by Jerry Lee Lewis..........She got the gold mine, I got the shaft.
Comment by
Henryviii on Feb 05, 2024 12:19pm
Has anyone phoned their office to ask how the loading is going.
Comment by
Margin321 on Feb 05, 2024 1:58pm
That is pretty tightly held. Dean won't say much. Was there one truck in January, or more? There needs to be 5 or six a month to be selling at rate of 12,000 mcf/year.
Comment by
hopeful88 on Feb 08, 2024 3:05pm
How low will we go? DME was trading @ 2.50 last March when they were forced to pull anchor and move the operation to a new location. they now trade @ .25cents. RHC may have to do the same, pull the whole plant out and relocate to Southern Saskatchewan. This operation stinks. The truth hurts but i guess i"ll hold my position, i don't think we will go any lower than .12c.