Leading helium supplier in North America The global helium market, with no viable substitutes and a limited supply, is projected to grow by ~50% over the next 5 years given its essential role in diverse industries including MRI machines, semiconductor manufacturing and fiber optics.
However, the $4.4 billion helium market is grappling with a supply shortage due to soaring demand, resulting in a crisis that is squeezing prices higher, effectively creating the helium shortage 4.0.
As the sole publicly traded producer of helium, Total Helium (TOH.v TTLHF) is strategically positioned to become a leading supplier in North America, thus generating substantial returns.
By the second quarter of 2023, TOH is on track to have 20 wells in operation, with further scaling expected to over 150 wells at its 27,000-acre Pinta South Project located in Arizona's helium-rich Holbrook Basin. Concentrations at the site range from 5-8%, significantly surpassing the average helium concentration of up to 3%, underscoring the projects potential and economic viability.
TOH has forged a significant partnership with Linde ($LIN, $170+B market cap), the largest industrial gas company globally. Linde has committed to fund the pipeline expansion for the project and pay $500/Mcf for the first 10 wells.
This partnership secures robust economics for the project as evidenced by the already successful production of 50,000mcf of helium at 8% concentration from their two existing wells, generating over $9M in helium value in three years just from the partnership.
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