Royal Helium Q2'24 Results; Still Venting 45-50% Helium

During Q2'24 Royal Helium continued delivery of purified helium under existing offtake agreements which it had signed at a price of US$625/mcf. Although the company has not revealed the amount of helium producer or sold, based on the reported revenue of C$782k, we imply that the company must have sold ~1mmcf during the quarter. Based on our analysis and publicly available data, we know that Royal produced ~1.2mmcf during Q2'24 which is roughly in line with what the company reported. It should also be noted that Royal helium is still venting 45-50% of the total helium produced. During the quarter the company also entered into a letter of intent for a C$25mm joint venture with Sparrow Hawk Developments for the Val Marie helium project in Saskatchewan. The company received a C$3mm repayable contribution from Western Economic Diversification Canada under the Aerospace Regional Recovery Initiative and secured its first commercial offtake agreement for food and beverage grade CO2. Additionally, C$2.5mm of its 12% convertible debentures were converted into shares, and the company closed a bought deal financing, raising gross proceeds of C$6mm. It ended the quarter with a net loss of C$3.5mm, cash position of only C$209k, and total assets of C$89mm.

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