Hey FHC right now Renergen is still pre-revenue in terms of Phase One. Also with the global shortages of helium there isn't mainstream awareness as there's no clear global pricing. If it's pricing was listed alongside other commodities such as oil, gas, copper and nickel etc.. they'd be great awareness of any price spikes when there are global shortages I'd surmise. Most people don't know much about helium apart from party balloons hence if it gets too expensive no more party balloons as Stef mentioned so that might help bring some awareness lol
The token may bring some price awareness but as per the video the recommended strategy is to hold it long till its redeemable in 2-3 years.
On the RLT share price we are about 120 days into the Ivanhoe DD period so games could be occurring. Things going forward that could potentially be catalysts to move towards the $7/share - $40/share NPV value from the reserves update and maybe beyond:
1. Phase One proven and generating income
2. Oil prices remain elevated or go even higher so LNG revenues sold at a discount to diesel and LPG come in higher than forecast
3. I believe 20% of Phase One might be sold to the spot helium market so if global shortages of helium persist revenues from there might be higher than forecast
4. Confirmation of funding and the go ahead for the Phase Two plant - this is the big one right now in my opinion
5. Confirmation the cryo-vacc project could potentially bring in revenues with units out in the field. Noting 15,000 cryo-vacc units in the field could equal the Phase Two Virginia Gas Project's revenues so potentially the share price in such a scenario could double as a result. So sentiment for Renergen could be really boosted if cryo-vacc was successful
6. Drilling that increases the reserves of helium and methane could be huge long term given current reserves are from only 14% of the land area
7. There was an article suggesting Renergen could try to capture as much as 20% of the global helium market noting Phase Two current plans captures maybe only 5% to 10% of the gloal helium market so that would require a huge gas facility expansion over current plans
8. Long term potentially drilling at Evander and having a second gas field
9 . Long term global pricing dynamics in both LNG and helium. In the video Stefano mentioned Exxon - Hugoton could be out of helium in the next few years so 20% of global supply gone, BLM with 10% of global supplies out of action soon too. Wit just those two gone and let's say global demand up 20% in the next few years that leaves a 50% supply deficit that needs to come from somewhere so maybe there is an opportunity for Renergen to expand and help fill the gap in global demand in future years along with Qatar expanding their operations etc.. Also helium supply options become more crucial given Russia's Amur plant was targeting about 25% of global demand but has been hampered by fires and an explosion plus now the geopolitical landscape
RLT Price at posting:
$3.18 Sentiment: None Disclosure: Held
(20min delay)