RE: 25k buy28 Aug 2025 12:22
The unanswered billion-dollar question hanging over the Helium One share price!
With the Helium One share price stuck around 1p, our writer tries to answer the question that he reckons every shareholder’s asking.
Posted by
James Beard ❯
Published 18 July, 9:53 am BST
HE1
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Despite a steady flow of good news stories, the Helium One Global (LSE:HE1) share price has been largely unmoved in recent months. It’s as though investors are waiting for something big to happen.
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Although production at the Galactica-Pegasus project in Colorado — in which it has a 50% interest — is due to commence in the fourth quarter, it’s a relatively small discovery.
It’s the group’s mine in Tanzania that really counts. The legal paperwork, including confirmation of the government’s 17% minority stake, is expected to be signed shortly.
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Then the hard work – including raising the estimated $75m-$100m needed to commercialise production – will start.
But I want to know what the helium’s worth. Only when this question’s been answered is it possible to understand how the company should be valued.
So here goes…
Reserves
Mining’s a complicated business. And a report from an international reserves auditor — looking at the potential of the Rukwa mine — confirms this.
Amid the plethora of numbers, the one I’m focusing on is the estimated contingent resource. This is defined as gas that’s “potentially recoverable from known accumulations… not yet considered mature enough for commercial development due to one or more contingencies”.
In the case of Helium One, I think it’s fair to say that one such uncertainty is the fact that the helium isn’t conventional dry gas. Instead, it’s found in water aquifers. The group’s boss says this is a “unique play”, which casts some doubt on its recoverability.
I’m going to use what’s described as the “best” or “most realistic” estimate of helium reserves. To meet this definition, there has to be at least a 50% chance this amount will be exceeded.
Finally, I’m only considering
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