RE: NEW FLOOR - 30P6 May 2021 16:59
Great stock
According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…
What does Helium One do?
Helium One is an AIM-listed company engaged in helium exploration. Helium is a colourless, odourless, non-toxic gas that’s used in a wide range of applications. The company’s aim is to become a producer of high-grade helium for the international market.
HE1 holds around 4,500 square kilometres of exploration licences in provinces in Tanzania. It holds 100% of these licences and has exclusive rights to develop the assets.
At its current share price, Helium One has a market capitalisation of around £130m. This means it’s a very small (micro-cap) company.
The helium market is growing
It’s worth noting that the market for helium is growing at a rapid rate. In 2019, the global market was worth around $10.6bn. However, by 2023, it’s expected to be worth around $15.7bn.
In terms of its applications, helium is used for leak detection, in MRI scans, in rocket propulsion systems, in semiconductor manufacturing, and, of course, in party balloons.
Why are UK investors buying HE1 shares?
As for why investors are excited about Helium One shares, is due to the fact that the company is shortly about to start a three-well drilling programme at its Rukwa project in south-west Tanzania.
Recently, the group advised it had commenced mobilisation of a drilling rig and ancillary equipment to a forward holding yard about 100km away from the project area. It added that mobilisation is progressing on time to allow the company to achieve its target spudding date of mid-May.
It’s also worth pointing out the company’s recently listed in the US on the OTCQB Venture Market, under the ticker HLOGF. The group says the US has a “significant interest” in helium as a commodity. And it hopes the visibility it gains from this listing will increase shareholder demand.
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