HELIUM ONE GLOBAL, CAPITALIZING ON SUPPLY SHORTAGES OF A KEY ELEMENT?

INTRODUCTION

Helium One Global is a company that focuses on drilling for helium, which is currently a key input material for various industries. Industries include the semiconductor industry, the medical industry, computing industry and the energy industry in the context of nuclear energy development. Helium as a resource is scarce, and there have been major supply shortages of the element, given that it is non-renewable. Helium prices have grown at a cumulative annual growth rate of around 8% for the last 20 years, and the price is expected to continue growing. Helium One Global is in a strong position to exploit this demand with its drilling infrastructure and will be able to sell helium at high premiums given the excessive demand within the market. With this kind of dynamic in mind, Helium One Global could be one the great penny stocks.

HELIUM ONE HITS THE JACKPOT?

Helium One Global recently announced a successful drilling project, with recent reports suggesting the company has found a large reservoir of the element. According to the reports, one of the drilling projects in Tanzania has found around 9,000 times above background levels, suggesting that there is a high likelihood the company has drilled into a helium reserve. Helium One’s stock price reacted sharply, rallying some 600% before stabilizing on the news.

ENCOURAGING SUPPLY/DEMAND DYNAMICS FOR HELIUM SALES

Helium is a non-renewable source, and unlike other common non-renewable sources, the scarcity of helium is much more apparent. Helium has undergone multiple phases of critical shortages over the last 20 years, as exploration and extraction of the commodity has been difficult. However, Helium One Global appears to have addressed the issue, especially with their recent drilling success. The current supply/demand dynamic for helium is expected to remain for the foreseeable future, and this can be a key catalyst for driving Helium One’s price higher as the company scales its sales.

CONCLUSION/SUMMARY

In conclusion, Helium One Global is in a strong position to exploit a market in which helium shortages are stark. Given market expectations of an ongoing shortage, and with the company’s recent drilling success potentially leading to extraction and sales, Helium One Global could see continued price appreciation for the foreseeable future. It could present an opportunity for investors looking to buy into shares.