The widening gap caused by surging demand and decreases in supply has catapulted the helium market into a supply crisis, effectively giving rise to the helium shortage 4.0.
Helium is a crucial component in a range of industries with uses in MRI machines, semiconductor manufacturing, and fiber optics. Given the lack of feasible alternatives and limited availability, the worldwide helium market is estimated to expand by ~50% over the next five years from its current value of $4.4B.
One company that is strategically positioned to become a leading supplier in North America by actively investing in helium storage, exploration and production is Total Helium (TOH.v TTLHF).
Actively investing in helium storage, exploration and production, TOH is on track to have 20 wells in operation by the second quarter of 2023 with plans to scale its operations significantly, reaching upwards of 150 wells at its 27,000-acre Pinta South Project.
Situated in Arizona's helium-rich Holbrook Basin, the concentrations at Pinta South range from 5-8%, significantly surpassing the average helium concentration of up to 3$ and underscoring the projects potential and economic viability.
An important development for TOH is its partnership with Linde ($LIN, $170+B market cap), the largest industrial gas company globally. As part of this collaboration, Linde will finance the pipeline expansion for the project and pay $500/Mcf for the initial 10 wells.
To demonstrate the significance of this partnership, the already successful production of 50,000mcf of helium at 8% concentration from TOH's two existing wells would generate over $9M in three years, securing robust economics for the project.
Positioned within a high-growth industry, TOH offers an enticing investment opportunity to capitalize on the helium markets expansion and is primed to support the rapid growth of America's high-tech industries that heavily rely on helium.
For more information, check out TOH CEO Robert Price on Proactive providing an operational update: https://youtu.be/lZruebTtvmk
Posted on behalf of Total Helium Ltd