Helium has historically been in high demand for medical applications, particularly MRI machines. However, there has been a recent spike in demand from sectors like high-tech manufacturing, aerospace, defense, and nuclear energy.
This surge has created an opportunity for companies like Royal Helium (Ticker: RHC.v or RHCCF for US investors) to address the supply shortfall. In a recent episode of "Inside The Boardroom," Andrew Davidson, CEO and Director of Royal Helium highlighted how the company is focused on exploring, producing, and selling helium to meet these growing needs.
Royal Helium is Canada’s first publicly traded helium company, operating in a market traditionally dominated by large industrial gas firms and the now-closed U.S. Strategic Helium Reserve in Texas. The closure of this reserve has heightened awareness of the helium supply-demand gap, leading to increased prices.
Davidson highlighted the company's flagship Steveville facility in Alberta, which began production in late 2023 and is currently scaling up while continuing its sales.
Royal Helium is also innovating by monetizing byproducts like CO2 and methane, traditionally seen as waste, to create additional revenue streams. This approach aligns with their goal of becoming a junior industrial gas producer with diversified income sources.
Looking forward, Royal Helium plans to expand its operations by replicating the success at Steveville across other areas. With over 1M acres of helium rights in Saskatchewan and Alberta, and successful drilling at ten wells across four projects, the company is positioned to scale up production.
In the short term, the company’s focus is on increasing production at Steveville and exploring new project areas. With helium currently selling at an average price of $538 USD per thousand cubic feet (mcf), Royal Helium is strategically positioned for economic success. Their long-term vision is to establish themselves as a leading independent provider of helium and other industrial gases, with a focus on direct sales to end-use customers.
Full interview:
Posted on behalf of Royal Helium Ltd.