Helium Market Dynamics:
The helium market's worth has reached an impressive $4.4 billion globally, and analysts forecast an annual growth rate of over 12% between 2022 and 2023. The significance of helium in diverse industries drives this demand surge. For instance, semiconductors rely on helium for cooling during the manufacturing process, while medical devices require it for magnetic resonance imaging (MRI) systems. Furthermore, aerospace and military applications heavily rely on helium for pressurization and purging purposes. Anticipated helium demand projections indicate an impending risk of future shortages.
Total Helium's Strategic Approach:
Total Helium Ltd. (TSXV: TOH OTCQB:TTLHF) has taken proactive steps to establish itself as a leading domestic supplier of helium in North America. The company's recent joint venture for 50% ownership of the Pinta South helium field in Arizona's Holbrook Basin showcases its commitment to expanding its drilling operations. As Total Helium plans to develop 18 additional wells by the second quarter of 2023, it is well-positioned to tap into the high helium concentrations (ranging from 5% to 8%) in the region.
Market Outlook and Future Expansion:
The rise in helium prices, which have doubled since 2021, creates favorable conditions for Total Helium's growth strategy. The company remains vigilant in identifying opportunities to expand its footprint in the helium sector.
In addition to Total Helium, other companies like Messer, Air Products & Chemicals Inc, and North American Helium are actively involved in the production and storage of helium. As the industry continues to evolve, Total Helium's focus on increasing the number of wells and exploring emerging helium plays underscores its commitment to meeting the growing market demand.
Conclusion:
The current global helium shortage has highlighted the need for stable domestic ownership and supply of this essential resource. With a vision for long-term sustainability, Total Helium aims to ensure a stable helium supply chain in the USA for industries that rely on this valuable gas.
Check out Total Helium's Investor Presentation here for more info: https://www.totalhelium.com/wp-content/uploads/2023/05/Total-Helium-Corporate-Presentation.pdf Posted on behalf of Total Helium Ltd.