Helium One Global Ltd: A ‘Buy’ Proposition before Maiden Production in 2025
Helium One Global Ltd (HE1/HLOGF), a resource exploration company, is poised for significant growth as it gears up for its maiden production in the first half of 2025. This optimistic outlook comes from none other than Panmure Liberum, a reputable stockbroker, who has set a 3.6p price target for Helium One, which is more than three times its current market price of 1p.
Why the Bullish Outlook?
According to Panmure Liberum, Helium One’s vast helium reserves in Tanzania, estimated to be the third largest in the world, are the primary reason for their bullish stance. The company’s flagship project, the Lubando Project, is anticipated to produce 1.2 million cubic feet of helium per day at full capacity. This is a significant amount, considering that the global helium market is estimated to be around 13 billion cubic feet per year.
Financial Projections
Based on these production estimates, Panmure Liberum projects that Helium One will generate approximately £110 million in revenue annually. With an assumed operating cost of £45 million, the company is expected to generate an operating profit of £65 million per annum. These figures do not take into account potential cost savings from economies of scale and operational efficiencies.
Impact on Investors
For investors, this means that Helium One could be an attractive investment opportunity. With a market capitalisation of around £35 million, the stockbroker’s 3.6p price target implies a potential upside of over 120%. However, as with any investment, it is essential to consider the risks involved, such as operational risks, regulatory risks, and market risks.
Global Impact
On a larger scale, Helium One’s production could have a significant impact on the global helium market. Helium is an essential component in various industries, including medical, electronics, and welding. With the anticipated increase in supply, prices could potentially decrease, making helium more accessible to a broader range of industries and consumers.
Conclusion
In conclusion, Helium One Global Ltd’s maiden production in 2025 is an exciting development for the company and the global helium market. With Panmure Liberum’s bullish outlook and the vast helium reserves in Tanzania, investors may find Helium One an attractive investment opportunity. However, as always, it is crucial to conduct thorough research and consider the risks involved before making any investment decisions. Furthermore, the anticipated increase in helium supply could have a significant impact on the global market, making helium more accessible to a broader range of industries and consumers.
- Helium One Global Ltd is poised for significant growth with maiden production expected in H1 2025
- Panmure Liberum sets a 3.6p price target, implying a potential upside of over 120% from current market price of 1p
- Vast helium reserves in Tanzania, estimated to be the third largest in the world
- Anticipated annual revenue of £110 million and operating profit of £65 million
- Impact on investors: potential upside of over 120%
- Impact on global helium market: potential decrease in prices, making helium more accessible to a broader range of industries and consumers
