The worldwide helium market, lacking feasible alternatives and facing limited availability, is currently valued at $4.4B and is estimated to expand by approximately 50% in the upcoming five years. This growth is primarily attributed to its crucial significance in various industries such as MRI machines, semiconductor manufacturing, and fiber optics.
However, the helium market is currently confronting a supply shortage caused by surging demand. As a consequence, this crisis has led to escalating prices, effectively giving rise to what is commonly referred to as the helium shortage 4.0.
As the sole publicly traded producer of helium, Total Helium (TOH.v TTLHF) is strategically positioned to become a leading supplier in North America, thus generating substantial returns.
On track to have 20 wells in operation by the second quarter of 2023, TOH has plans to scale its operations significantly, aiming to reach upwards of 150 wells at its 27,000-acre Pinta South Project, situated in Arizona's helium-rich Holbrook Basin. Concentrations at the site range from 5-8%, significantly surpassing the average helium concentration of up to 3%, underscoring the projects potential and economic viability.
TOH has forged a significant partnership with Linde ($LIN, $170+B market cap), the largest industrial gas company globally. As part of this collaboration, Linde has committed to finance the pipeline expansion for the project and pay $500/Mcf for the initial 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. With this, this would generate over $9M in helium value in three years solely from this 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