Royal Helium Ltd. V.RHC.WT.A

Waiting for Progress Update

[energee]

Don't own any of this one (yet). Seems to me they have a few hurdles to overcome.

1. Run time at Steveville plant. Consulting firm hired to assist with OPEX and such..
2. Progress update on Val Marie JV in Sask. Is this happening? Hard to see $25M commitment. They need to drill a few targets first to see what they produce. Staged investment for sure.
3. Update on timing of Forty Mile drill. Licenced in May, where is that now?
4. Payables were large at Q1, waiting for Q2 update. $6M financing was required to save the story.
5. Options and warrants out of the money.

In my view, they are working on a high risk exploration story with vertical drills. They even compare themselves to gas producers who are struggling with nat gas price. Best thing about this is they are pursuing a high value product. They might find O&G on the way down, similar to First Helium at Worsley, AB.

Will re-visit once they address 1-5.