The Helium One International (LSE:HE1) share value is on fireplace in the meanwhile. On the time of writing (20 February), the inventory’s altering palms for over 40% greater than it was a month in the past.
What’s inflicting this sudden curiosity within the comparatively unknown fuel explorer? Let’s take a more in-depth look.
Picture supply: Getty Photographs
A finger in two pies
Helium One has two tasks on the go.
Probably the most superior is its Galactica-Pegasus three way partnership in Colorado. And this seems to be the catalyst for a lot of the £19m enhance within the group’s market cap over the previous 4 weeks or so.
The corporate lately stated that “built-in plant operations” have been scheduled for the tip of the month because it gears up for manufacturing later within the yr. Considerably, it additionally stated: “Preparations have been made for spot gross sales of helium and discussions in respect of long-term contracts with each helium and CO2 off-takers are progressing.”
However this can be a comparatively small operation. In March 2025, the group stated it expects “a mean of roughly US$2m each year will accrue to the corporate over a interval of 5 years.” It is a income determine, not revenue. For context, throughout the yr ended 30 June 2025, the group’s whole administrative bills have been $4.1m.
Nonetheless, the estimate excludes any profit from the sale of carbon dioxide (CO2). And there may very well be additional undiscovered deposits of each gases.
However I believe shareholders consider a doubtlessly larger prize lies elsewhere.
Miles away
That’s as a result of the group owns 83% of the Southern Rukwa Challenge in Tanzania.
Right here, additional testing utilizing {an electrical} submersible pump has resulted in water circulate charges “exceeding expectations”. That is vital as a result of the helium isn’t standard dry fuel. As a substitute, it’s present in water aquifers, which the group acknowledges is “distinctive”. And I believe this casts some doubt on its recoverability.
Nonetheless, if it’s in a position to overcome this problem, there’s huge potential in accordance with an unbiased estimate of reserves. However given the uncertainty typical of the trade, it’s regular to cite a variety of figures.
For context, though there isn’t a spot value for the fuel, I’ve seen reviews suggesting helium sells for as much as $1,000 per thousand commonplace cubic toes relying on its grade. Because of its particular traits, specifically its cooling properties, demand for helium is rising, which may drive costs increased.
The final time I wrote about Helium One I used to be contacted by an trade knowledgeable claiming that it’s not “technically or financially doable” to move compressed helium by sea from Africa utilizing ISO tanks. I put this to a consultant of the corporate who agreed. However they advised me that “helium can be transported as a compressed fuel in tube trailers by ship”.
No thanks!
However I don’t need to make investments.
The corporate says round $100m shall be wanted to commercialise manufacturing. I believe shareholders will, subsequently, be additional diluted. This isn’t a criticism. It’s a truth of life for pre-revenue firms. From June 2020 to June 2025, Helium One elevated its variety of shares in subject by over 6bn (3,417%).
There are a great deal of mining firms which are already efficiently producing and, extra importantly, totally funded. On this foundation, I believe there are much less dangerous alternatives to contemplate elsewhere.
