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Desert Mountain Energy Corp V.DME

Alternate Symbol(s):  DMEHF | V.DME.WT

Desert Mountain Energy Corp. is a Canada-based resource company primarily focused on the exploration, development and production of helium, hydrogen, natural gas and condensate. The Company is focused on helium extraction from different raw gas sources in an environmental and economical manner by supplying elements deemed critical to the renewable energy and high technology industries. Its Holbrook Basin Helium Project comprises more than 1000,000 acres of key helium prospects under lease. Its West Pecos Slope Abo Gas Field and gas gathering system is located in Chaves County, New Mexico. The West Pecos Gas Field encompasses a vast infrastructure, including 188 wells, over 50 miles of gas collection lines, and 77,000 acres of oil and gas leases. Its secondary focus is developing hydrogen assets located within their helium fields.


TSXV:DME - Post by User

Comment by Bertie20on Dec 16, 2022 12:37pm
248 Views
Post# 35176073

RE:Global supply

RE:Global supplyJust because thee is a high risk of a global recession, it does not  mean that helium prices need to go down. The main sources of demand--MRIs, semi conductors, coolant for date centers and for EV car batteries--only look set to either stay still or continue growing. Healthcare is largely recession-proof, digitalization is only going to accelerate and it is a similar story for electric vehicles.
Meanwhile, on the supply slide, the explosion at the Amur factory in Russia--which was expected to provide 30% of global supply--will keep it offline for probably years (and even if it comes back online, sanctions mean that helium will not be accessible in North America). There will be new production from Qatar, but, one, its a long way to transport helium to the US, and, two, it will probably only just, at best, offset the loss of helium from the Amarillo facility. To visualize this, check out this old report from May 2021 (before Amur exploded). It was focused on Helium One, but has some interesting global supply forecasts. Check out the chart on page 3, and then remove Russia from it.
https://www.helium-one.com/wp-content/uploads/2021/05/21-05-24-Hannam-Note.pdf

In reality, it is plausible that prices could remain at current highs, or even go higher, as much as it might go down. It is really not easy in such an opaque market, though, so all the above is highly speculative.
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