Since January 2022, the helium market has been facing a supply shortage caused by surging demand contrasting with decreases in supply. As a consequence, this crisis has led to escalating prices, effectively giving rise to the helium shortage 4.0.
Lacking feasible alternatives and facing limited availability, the worldwide helium market is estimated to expand by ~50% over the next five years from its current value of $4.4B. This growth is primarily attributed to its crucial significance in various industries such as MRI machines, semiconductor manufacturing, and fiber optics.
Strategically positioned to become a leading supplier in North America by actively investing in helium storage, exploration and production, Total Helium (TOH.v TTLHF) is the sole publicly traded producer of helium.
TOH is on track to have 20 wells in operation by the second quarter of 2023 with plans to scale its operations significantly, reaching upwards of 150 wells at its 27,000-acre Pinta South Project, situated in Arizona's helium-rich Holbrook Basin. Concentrations at the site range from 5-8%, significantly surpassing the average helium concentration of up to 3%, underscoring the projects potential and economic viability.
Notably, TOH has forged a partnership withthe largest industrial gas company globally, Linde ($LIN, $170+B market cap) who, as part of this collaboration, will finance the pipeline expansion for the project and pay $500/Mcf for the initial 10 wells.
As evidenced by the already successful production of 50,000mcf of helium at 8% concentration from their two existing wells which would generate over $9M in three years, this partnership secures robust economics for the project.
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