The super hot Helium One share price is up 43% in a month! What’s going on?
I Helium One Global (LSE:HE1) share price is on fire at the moment. At the time of writing (20 February), the stock is changing hands over 40% more than it was a month ago.
What is causing this sudden interest in the unknown gas tester? Let’s take a closer look.
Image source: Getty Images
Two finger pies
Helium One has two projects on the go.
The most advanced is its Galactica-Pegasus joint venture in Colorado. And this appears to be the main reason for the £19m increase in the club’s market cap in the last four weeks or so.
The company recently revealed that “integrated plant operations” is scheduled for the end of the month as it prepares to be done at the end of the year.” What is significant is that he also said:Arrangements have been made for spot sales of helium and negotiations regarding long-term contracts with both helium and CO.2 exits continue.“
But this is a relatively small task. By March 2025, the group said it expects “an estimated US$2m per year will add to the company over a five-year period.“This is the amount of revenue, not profit. For context, during the year ended 30 June 2025, the group’s total administrative expenses were $4.1m.
However, the estimate does not include any profit from the sale of carbon dioxide (CO2). And there may be other undiscovered deposits of both gases.
But I suspect that shareholders believe the potential prize lies elsewhere.
Miles away
This is because the group owns 83% of the Southern Rukwa Project in Tanzania.
Here, further testing using an electric submersible pump led to water flow rates “exceeding expectations“. This is important because helium is not a normal dry gas. Instead, it is found in underwater environments, the group admits that “unique” And I think this casts some doubt on its restoration.
However, if it can overcome this challenge, it has great potential in terms of independent reserves. But given the general uncertainty of the industry, it is common to quote a wide range of prices.
For context, although there is no price for the gas, I have seen reports suggesting that helium sells for up to $1,000 per thousand standard cubic feet depending on its grade. Due to its special properties, especially its cooling properties, the demand for helium is increasing, which may increase the prices.
When I last wrote about Helium One I was contacted by an industry expert who said “technically or financially feasible” to transport compressed helium by sea from Africa using ISO tanks. I put this to the company representative who agreed. But they told me “Helium can also be transported as a compressed gas in tube trailers by ship“.
No thanks!
But I don’t want to invest.
The company says it will need about $100m to go into commercial production. I suspect that the shareholders will be diluted again. This is not a criticism. It’s a fact that exists in early income companies. From June 2020 to June 2025, Helium One increased its number of issued shares by more than 6bn (3,417%).
There are a number of mining companies that are already successfully producing and, most importantly, fully funded. On this basis, I think there is little risk of being considered elsewhere.
