Helium One Global Ltd

Investment Timeline

This article provides a chronological analysis of the entity's performance and strategic developments.

Helium One Global Ltd: 2022 Annual Analysis

Helium One Global Ltd (HE1.L), a prominent player in the helium exploration and production sector, has carved out a significant role in addressing the global demand for helium—a resource critical to industries such as semiconductors, medical imaging, and space exploration. In 2022, the company focused on its flagship high-grade helium project in Tanzania, a globally unique asset due to its large-scale, low-carbon helium potential. Additionally, Helium One holds a 50% stake in a helium development project in Las Animas County, Colorado, USA, further solidifying its presence in the helium supply chain. The company’s strategic emphasis on Tanzania’s helium-rich regions highlights its ambition to expand the world’s helium inventory. A major milestone was achieved in 2022 with the confirmation of a significant helium discovery in Tanzania, boasting sustained flow rates of up to 5.5% helium—a pivotal moment in its exploration efforts. This discovery aligns with Helium One’s goal of becoming a leading supplier in a helium market valued at US$2.3 billion in 2022, with projections to grow to US$2.8 billion by 2026. Listed on the London Stock Exchange with a market capitalisation of approximately £56.25 million, the company has demonstrated its commitment to advancing its projects while prioritising low-carbon operations.

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Financial and Operational Performance in 2022

Helium One Global Ltd made notable progress in 2022, bolstering its competitive position in the helium industry. The company’s audited results for the year ending 30 June 2022 highlighted key achievements, including the completion of its maiden drilling programme in Tanzania. This programme yielded helium concentrations of up to 4.7% at the Rukwa Rift Basin, with sustained flow rates of up to 5.5% helium, positioning the company as a potential world-class helium source. While specific revenue and profitability metrics for 2022 remain undisclosed, the strategic acquisition and mobilisation of the Epiroc Predator 220 drilling rig to the Rukwa site underscored operational efficiency and progress.

A significant milestone was Tanzania’s award of its first helium mining licence to Helium One, enabling the company to advance its flagship project towards commercialisation. These developments have bolstered investor confidence, as reflected in the ‘buy’ rating from stockbroker Liberum, which set a price target of 19p for the company’s shares. Although market share data for 2022 is not explicitly available, Helium One’s advancements in Tanzania and its 50% stake in the Las Animas project in the USA suggest a strengthening foothold in the global helium supply chain.

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Strategic Initiatives and Market Expansion

In 2022, Helium One undertook several strategic initiatives to enhance its market position and operational capabilities. A key highlight was the granting of a mining licence for its flagship Rukwa Helium Project in Tanzania, paving the way for accelerated development and commercialisation efforts. The company also acquired and mobilised the Epiroc Predator 220 drilling rig to the Rukwa site, enabling deeper drilling campaigns and enhancing exploration efficiency. This move proved instrumental in the discovery of high-grade helium concentrations, with sustained flow rates of up to 5.5%, further validating the project’s potential as a world-class helium source.

Beyond Tanzania, Helium One maintained a 50% stake in a 246km² helium development project in Las Animas County, Colorado, USA. This dual focus on Tanzania and the USA not only diversified its asset portfolio but also strengthened its role in the global helium supply chain. These initiatives were strategically aligned with the company’s goal of capitalising on the growing helium market, which was valued at US$2.3 billion in 2022 and projected to reach US$2.8 billion by 2026.

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Challenges and Market Headwinds

Despite its progress, Helium One faced significant challenges in 2022. In Tanzania, equipment failures, such as a component malfunction in the Predator 220 drilling rig, delayed progress at the Rukwa site. The company demonstrated adaptability by extending its well test at Itumbula West-1 and securing an offer for a Mining Licence from the Tanzanian Mining Commission. In Colorado, winter-related disruptions, including adverse weather conditions, necessitated modifications to the drilling schedule for the Galactica Project.

Competitive pressures in the helium market, projected to grow at a CAGR of 7.4% to reach USD 7.47 billion by 2029, added further complexity. Helium One’s strategic response included raising £4.7 million through a company-led placing, ensuring sufficient funding for its next phase of development. The regulatory environment in Tanzania proved favourable, with the company submitting a comprehensive Mining Licence application and receiving an offer, while in the USA, environmental compliance and regulatory navigation added complexity.

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Operational Changes and Strategic Shifts

Helium One underwent several operational changes in 2022 to address challenges and capitalise on opportunities. The acquisition and deployment of the Epiroc Predator 220 drilling rig to the Rukwa site marked a critical step in advancing exploration capabilities. However, a component failure later in the year temporarily halted drilling operations, highlighting the operational risks inherent in such projects. Despite this setback, Helium One secured a mining licence for its flagship Rukwa Helium Project, validating its potential and enabling accelerated development.

Leadership changes also occurred, with the CEO and non-executive chairman stepping down, signalling a potential shift in strategic direction. These adjustments, coupled with the successful mobilisation of the Predator 220 rig and the granting of the mining licence, reflect Helium One’s commitment to overcoming operational hurdles and advancing its position in the global helium market.

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Market Positioning and Future Outlook

At the close of 2022, Helium One’s market positioning was shaped by its high-grade helium discoveries in Tanzania, particularly at the Rukwa Rift Basin, with sustained flow rates of up to 5.5% helium. This positions the company as a key player in addressing the global helium shortage. Its 50% stake in the Galactica-Pegasus project in Colorado further diversified its portfolio and provided near-term cash flow opportunities.

However, operational inefficiencies, including equipment failures and drilling delays, hindered its ability to meet production timelines. Financially, while Helium One completed its maiden drilling programme and announced audited results for the year ended June 2022, specific revenue and profitability metrics remained undisclosed.

The global helium market’s projected growth at a CAGR of 7.4%, reaching USD 7.47 billion by 2029, presents a significant opportunity for Helium One to capitalise on its strategic assets. The company’s focus on low-carbon helium production and its dual presence in Tanzania and the USA align well with the increasing demand for sustainable and diversified helium sources.

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Conclusion

Helium One Global Ltd’s 2022 performance was marked by significant achievements and notable challenges. The company confirmed high-grade helium discoveries in Tanzania, with sustained flow rates of up to 5.5%, positioning itself as a potential world-class helium supplier. However, operational setbacks, including equipment failures and drilling delays, underscored the complexities of exploration and production in this sector.

Despite these hurdles, Helium One demonstrated resilience by securing Tanzania’s first helium mining licence and advancing its dual-continent strategy, with a 50% stake in the Las Animas project in Colorado, USA. These strategic moves, coupled with its focus on low-carbon helium production, positioned the company to address the supply-constrained helium market.

By the end of 2022, Helium One had solidified its role as a forward-thinking player in the helium sector, leveraging its competitive advantages in resource potential and sustainable operations. Looking ahead, the company’s ability to overcome operational challenges and capitalise on its strategic assets will be pivotal in realising its long-term growth prospects and meeting the rising global demand for this critical resource.

Helium One Global Ltd: 2023 Annual Analysis

Helium One Global Ltd (HE1.L), an AIM-listed company, has established itself as a significant player in the helium exploration and production sector. With a focus on low-carbon helium, the company is strategically positioned to meet the growing global demand for this critical resource, particularly from industries such as healthcare (MRI scanners), semiconductor manufacturing, and space exploration . Its primary operations are centred in Tanzania, where it focuses on three key project areas: Rukwa, Eyasi, and Balangida . The Rukwa project remains its flagship endeavour, with ongoing testing and exploration activities, while Eyasi serves as a secondary site with promising developments. Balangida, though less prominent, remains part of the company’s broader portfolio .

In 2023, Helium One made notable progress in advancing its projects, aligning with its mission to address the global helium supply shortage. The market has experienced four major shortages since 2006, with helium prices rising by 11% annually over the past decade . The company’s commitment to low-carbon production strengthens its competitive edge in a market projected to grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2030, reaching a valuation of US$6,065.6 million. Additionally, Helium One expanded its global footprint by acquiring a 50% working interest in the Galactica Project in Colorado, USA . With a market capitalisation of approximately £56.25 million and a focus on sustainable growth, Helium One is well-positioned to capitalise on increasing helium demand .

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Financial Performance and Operational Efficiency

While specific financial metrics for 2023 remain undisclosed in publicly available sources, Helium One’s historical financial data from 2010 to 2023 suggests a steady trajectory. Key indicators such as revenue-to-assets and cost-of-revenue ratios highlight the company’s financial stability, even as granular 2023 data awaits official release .

Operational efficiency in 2023 was underscored by progress in the Rukwa and Eyasi projects, both critical to addressing the global helium supply shortage . The company’s competitive position is bolstered by its focus on low-carbon production, aligning with demand from industries like healthcare, semiconductors, and space exploration. Although explicit market share data for 2023 is unavailable, Helium One’s strategic investments, including its stake in the Galactica Project, demonstrate its ambition to expand globally .

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Strategic Developments and Key Initiatives

2023 was a transformative year for Helium One, marked by significant milestones and strategic initiatives. The Rukwa project entered an appraisal and development stage following a successful exploration drilling campaign. In August 2024, the ITW-1 well achieved a sustained flow of 5.5% helium during an extended well test, validating the project’s potential and showcasing the company’s technical expertise .

The Eyasi project also showed promise, with multiple surface helium anomalies identified, signalling opportunities for further exploration . Beyond Tanzania, Helium One’s 50% working interest in the Galactica Project in Colorado yielded a significant helium discovery, with the Itumbula West-1 well flowing 5.5% helium continually to the surface in Q3 2024 . These advancements reflect the company’s dual focus on operational excellence and market expansion, addressing the global helium supply shortage while meeting rising demand from critical industries.

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Challenges and Market Headwinds

Helium One navigated a complex landscape of industry-specific challenges and competitive pressures in 2023. The global helium market, valued at $3.3 billion in 2022 and projected to grow to $4.9 billion by 2032, faced significant headwinds, including supply chain disruptions and geopolitical uncertainties . Fluctuating helium prices, driven by rising demand from sectors like healthcare and semiconductors, further complicated the operating environment .

Despite achieving a significant milestone at Rukwa with a sustained 5.5% helium flow, the company faced financial pressures, including stock declines and equity dilution, reflecting broader market uncertainties . On the regulatory front, Helium One secured a mining license for the Rukwa project, highlighting Tanzania’s supportive stance towards helium exploration . However, the competitive landscape remained intense, with new entrants and existing players vying for market share.

To mitigate these challenges, Helium One acquired an Epiroc 220 drilling rig in July 2023, enabling the commencement of a second drilling campaign and demonstrating its commitment to advancing its projects .

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Operational Changes and Leadership Transition

2023 saw significant operational changes within Helium One, reshaping its strategic direction. A pivotal moment was the departure of David Minchin from the Board, marking a leadership transition. His replacement, Lorna Blaisse, brought fresh perspectives, aligning with the company’s goal of advancing its helium assets across Tanzania and Colorado .

The acquisition of the Epiroc 220 drilling rig in July 2023 enhanced the company’s drilling capabilities and underscored its commitment to cost efficiency and project autonomy . This move supported ongoing appraisal and development activities at Rukwa, which had already demonstrated promising results. Helium One’s focus on low-carbon helium production remained central to its business model, aligning with global sustainability trends .

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Market Positioning and Growth Trajectory

At the close of 2023, Helium One’s market positioning reflected a mix of competitive strengths and challenges. Its focus on low-carbon helium production, particularly through the Rukwa Project, provided a distinct advantage in an industry increasingly driven by sustainability demands . The acquisition of the Epiroc 220 drilling rig further enhanced operational efficiency, enabling greater control over project timelines and costs .

However, delays at Rukwa and financial pressures, including significant equity dilution, highlighted the hurdles faced by the company . Despite these setbacks, Helium One’s strategic expansion into the US market via its stake in the Galactica-Pegasus project signalled its ambition to diversify its global footprint . The global helium market, valued at over $2.8 billion in 2023, presented both opportunities and intense competition .

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Conclusion

Helium One Global Ltd’s 2023 performance showcased a blend of significant achievements and ongoing challenges. The Rukwa project achieved a major milestone with a sustained 5.5% helium flow during an extended well test in August 2024, paving the way for a Mining Licence application . The Eyasi project also demonstrated promising helium concentrations of up to 10.4%, further bolstering the company’s resource base .

However, financial headwinds persisted, with the company reporting an EBITDA of (2.6 M), reflecting the substantial capital expenditure required for exploration and development . Leadership changes, including the appointment of Lorna Blaisse as CEO, brought fresh perspectives to the company’s strategic direction .

Helium One’s commitment to low-carbon helium production and its stake in the Galactica-Pegasus project in Colorado underscored its ambition to address the global helium supply shortage while diversifying its geographic footprint . As the company navigates financial challenges and a competitive landscape, its 2023 achievements lay a strong foundation for future growth, positioning it as a resilient and innovative player in the helium market.