Total Helium Ltd V.TOH

Helium Shortages & Semiconductor Shortages

[MarketMakerss]

The helium market is currently grappling with a significant shortage which has profound impacts on a range of industries from healthcare to space exploration to semiconductor manufacturing.

Notably, supply shortages in the semiconductor industry have led to bottlenecks in the production of everything from cars to computers and highlighted how tiny chips are critical to the smooth functioning of the global economy.

"As the impact of digital on lives and businesses has accelerated, semiconductor markets have boomed, with sales growing by more than 20 percent to about $600 billion in 2021. McKinsey analysis based on a range of macroeconomic assumptions suggests the industry’s aggregate annual growth could average from 6 to 8 percent a year up to 2030."

(Source: https://www.mckinsey.com/industries/semiconductors/our-insights/the-semiconductor-decade-a-trillion-dollar-industry)

Aiming to provide a stable supply of helium to America's semiconductor industry, Total Helium (TOH.v TTLHF) has emerged as a high-potential helium opportunity due to its remarkable helium concentrations.

Spanning 27,000 acres, the rapidly scaling helium producer is focused on its Pinta South Project located in Arizona's helium-rich Holbrook Basin.

Notably, the Pinta South Project boasts remarkable helium concentrations, ranging from 5% to 8%, which is a substantial improvement over the usual helium concentrations seen of up to 3%.

With this, TOH has made a strategic partnership with Linde, the world's largest industrial gas company for the sale of its helium at a rate of USD$500 per MCF. This has secured Pinta South's economic viability with a rapid payback period ranging from a few weeks to a maximum of three months.

Significantly, this results in significant revenue gains at all production levels, as broken down by user Hawkstein on CEO.ca:

"These are the potential revenues... even if the wells are half of the low based on what Robert has said I would still buy this…"

On track to have 30 wells operational by year-end, TOH's latest update had 19 wells drilled at Pinta South so far with its final trajectory to expand operations to encompass over 300 wells.

Of the 19 wells, two are operating at full capacity and producing a combined rate of 250mcf per day at concentrations of 8%, 7 operating at limited capacity, 4 expected to be operational by Q3 2023 and 5 awaiting completion and pipeline connection.

For more details, check out Benzinga's comprehensive feature on TOH: https://www.benzinga.com/markets/penny-stocks/23/07/33164297/total-helium-otcqb-ttlhf-developing-major-helium-field-and-key-partnerships-secure-it-in-thi

Posted on behalf of Total Helium Ltd