Mining Discovery

Another BIG Mile post for Royal Helium leads to last Friday’s Surge

Facebook
Twitter
LinkedIn

Late Friday, shares of Royal Helium (TSXV-RHC; OTCQB-RHCCF) took off like a scalded cat in the last hour or so of trading, reaching their high for 2023 on heavy volume of nearly 800,000 shares.

But I.M.O. that jump of some 17% Friday is nothing compared to what’s coming after investors digest this news and understand the substantial boost to RHC’s fortunes it promises.

The occasion was THIS NEWS that came out late in the day. The company announced that it has now contracted to sell the remaining half of the Steveville helium processing plant’s capacity not accounted for in last August’s announcement. Further, the price agreed to for the remaining half was US$625/mcf, net of all transportation and liquefaction costs. That is well above the contracted price of $450/mcf for the first half and will further significantly bolster Royal’s soon-coming revenues.

Said Royal’s President/C.E.O Andrew Davidson in Friday’s announcement, “As the commissioning of our first helium processing facility approaches, we are pleased to now have sales commitments for all of Steveville’s capacity. The Steveville facility is fed by two of Royal’s 100% owned helium wells and is designed to produce 99.999% refined helium gas which will be liquefied in Colorado under our previously announced tolling agreement.”

It’s important to understand that the above figures are, as indicated, “net of all transportation and liquefaction costs.” Royal’s large, private customer in the end bears all the costs to first transport helium gas from Steveville to the facility in Colorado that turns the gas into a liquid form…and then sends the liquid helium (which is now less volatile and can be stored) on to the customer’s home base/storage.

Shortly, I’ll have an update on the latest additions to Royal’s board, as this key company makes the transition to full-on development. Likewise, I’ll get an updated time line for when all this will shortly commence; those of you who follow the company on Twitter (at

https://twitter.com/RoyalHeliumLtd) have been able to keep up with a lot of the plant components’ construction and more in the last several months.

For all the chatter–and appropriately so–in the recent past about structural shortages of critical materials, relatively little attention has been paid to helium. Yet the shortfall of this critical and strategic gas is as dire as is that of any metal or other material. Of the small number of players in this space, Royal has now taken the lead in the coming augmenting of scarce supplies; and as I mentioned above, I think the best days for investors are ahead.

If you have missed some of my past coverage, check out THIS PAGE especially on Royal Helium’s web site…it will give you a sobering look at just how important this unique gas is to so many aspects of America’s economy, health care system, military and more.

All the best,

 

Chris Temple

Editor/Publisher

Don’t forget that you can follow my thoughts, focus and all pretty much daily ! ! !

 

* On Twitter, at https://twitter.com/NatInvestor

 

* On Facebook at https://www.facebook.com/TheNationalInvestor

 

* On Linked In at https://www.linkedin.com/in/chris-temple-1a482020/

 

* On my You Tube channel, at https://www.youtube.com/c/ChrisTemple (MAKE SURE TO SUBSCRIBE!)

* Every Friday evening w/ Mickey Fulp on the Metals, Money and Markets Weekly at https://www.kitco.com/

Join our mailing list to receive news releases and other materials related to Mining Discovery

Subscribe Our Newsletter

All Copyrights Reserved To Mining Discovery @2023