| Welcome to your latest briefing of The Next Hot Stock. | | | I am starting to BUY: Avanti Helium Corp (TSXV: AVN, OTC: ARGYF) | Need To Know in 35 seconds: | | Shares of Avanti Helium are trading at an all time low of 0.14, after hitting a high of $3.17 in May 2021 on volume of 1.7 million shares. | | 2021: Investors were thrilled to see the appointment of a senior oil and gas executive as its CEO (Chris Bakker, ex-Encana), followed by a spree of land expansion adding over ~74,000 acres of land in Northern Montana and ~91,000 Acres of land in Saskatchewan to their portfolio of already prolific helium assets. | | Avanti drilled two wells into the “Sweetgrass” discovery pool in Montana, which will be coming into production later this year. | | Drill hole WNG 10-21 Is the highest flowing Helium well drilled in the past 40 years. | | Avanti has completed all ancillary components including pipelines from well site to thefacility site, marking a significant milestone toward bringing the operation ONLINE. | | At its peak Avanti had a market capitalization of around $190 million CAD. | | Shares have been on a wild downward roller coaster ride since then, fighting a harsh bear market on the TSX Venture Exchange, hitting rock bottom today at 0.14/share. | | (TSX-V Index hit a high of 1,023 in November 2021; currently at 572, gradually recovering from a low of 523 in November 2023) | | Since its peak, the story has gotten much stronger. And Venture stocks are recovering from their lows. | | Dilution since 2021 has been held to a minimum. | | The company is edging quickly toward its stated goal of generating its first cash flow from helium sales this year. | | We have reason to believe shares of Avanti are as near as they will come to an all time low, and will rebound strongly in the coming months. | Company Snapshot: | | Recent share price: 0.14 CAD
Recent market capitalization: ~$13 million CAD | | Company: Avanti Helium Corp (TSX-V: AVN) (OTC: ARGYF)
Industry: Helium exploration, development and production in Western Canada and Montana.
Summary: The helium industry has been in a state of structural deficit for a decade. There is an undeniable demand for it, being that it is the only element on earth that is completely non-renewable. Due to the instrumental role it plays in technology, aerospace, and medical care, helium is over 100 times more valuable than many other natural gases. | | Avanti has identified key areas for helium exploration and development in Southern Alberta and Montana and to date the company has successfully acquired ~78,000 acres of prospective helium acreage within the Greater Knappen area. The asset has multiple helium target intervals in Devonian and Cambrian. | | Avanti has a stated goal of achieving its first commercial production this year, and has signed a number of agreements with prominent helium distributors to this end. | Why it matters: | | The Greater Knappen area is a known helium hot spot. | -
Favorable Geology: Ideal sedimentary basins and natural traps for helium accumulation. -
Proven Helium-Rich Reservoirs: High helium concentrations in commercially viable quantities. -
Historical and Ongoing Discoveries: Continuous findings affirming the area's potential. -
Strategic Importance: Critical domestic supply for high-tech applications. -
Active Exploration Efforts: Increased activities using advanced techniques. -
Significant Economic Potential: High market value and economic benefits for the region. | Need to know: | -
Pathway to Commercial Production: Avanti has a number of agreements in place with a view toward putting various wells into production this year, effectively turning the company into a cash flowing operation for the first time. -
Their unfair advantage: Avanti has built a proprietary geological model to understand helium migration and accumulation at a fundamental level. -
Heavyweight leadership: Their leadership consists of several board members and executives, each with 28-30 years of experience in oil and gas, geology, geochemistry. Including a former board member for the Canadian Energy Geoscience Association (CEGA), and former senior leaders at Encana (now Ovintiv), a leading North American exploration and production (E&P). -
Demand fundamentals are strong: The US is the world’s largest producer, accounting for roughly 40% of supply. However, the US National Helium Reserve in Amarillo, Texas, the world’s single largest source of helium for the past 70 years, is now exhausted. In January 2024 the BLM auctioned off all remaining Helium Reserves, as well as the assets in Amarillo. BLM’s exit from the market will eliminate the current price ceiling. -
The upshot: Canada is estimated to have the 5th largest Helium reserves in theworld, and they are virtually untapped. | | Avanti Helium is positioned to take advantage of bullish demand fundamentals; on thecusp of generating its first recurring revenue; and has an opportunity to explore theuntapped potential of their vast land holdings, with potential to add significantly to already discovered helium wells. | | Visit the company’s website for more details: https://www.avantihelium.com | | | | Thank you for trusting The Next Hot Stock with your investment journey. We’re committed to helping you achieve your financial goals with expert insights and top-notch stock picks. | | Happy Investing | |