Just playing with numbers28 Jul 2024 10:33
The global market for bulk liquid helium is indeed substantial. According to recent reports, the **gaseous and liquid helium market** was valued at **US$ 7.05 billion** in 2023 and is projected to reach **US$ 29.87 billion** by 2030, growing at a **CAGR of 22.9%** during that period¹.
However, it's worth noting that another source estimated the global helium market size at **USD 3,613.2 million** in 2023, with an expected compound annual growth rate (CAGR) of **6.7%** from 2024 to 2030³. Regardless of the exact figure, helium's applications in healthcare, semiconductors, fiber optics, and welding contribute significantly to its demand and market value. 🎈🌐
There is an ongoing supply crisis of helium since the closure of the US federal reserve in 2019.
The majority of helium is sourced as a by-product of hydrocarbon production, with concentrations here typically 0.04-0.35%. As a low grade by-product it is not possible to increase current production to meet new demand, therefore current supply is inelastic to supply shocks.
Very conservatively, I'll say a possible SP (this year depending on developments) of between 6.5p and 15p.
This post is for information only and should not be considered as good mathematical extrapolation, so much as a semi-educated guess. Therefore do not consider this as investment advice or a recommendation to buy or sell shares in the company featured.