Menu

Recent Interviews

Nick Mather, CEO, SolGold PLC

Nick Mather
CEO | SolGold PLC
1 King Street, EC2V 8AU London (GB)

emichael@solgold.com.au

+44 20 3823 2125

SolGold CEO Nick Mather on building a major gold and copper mining company


Jared Scharf, CEO, Desert Gold Ventures Inc.

Jared Scharf
CEO | Desert Gold Ventures Inc.
4770 72nd St,, V4K 3N3 Delta (CAN)

jared.scharf@desertgold.ca

Desert Gold Ventures CEO Jared Scharf on West Africa and its potential


Stephan Dorfmeister, Finance Department, Deep Nature Project GmbH

Stephan Dorfmeister
Finance Department | Deep Nature Project GmbH
Untere Hauptstraße 168, 7122 Gols (AT)

office@deep-nature.at

+43 681 10139055

Like Aurora Cannabis and Canopy Growth, Deep Nature Project GmbH focuses on value chain


20. July 2020 | 05:50 CET

Ballard Power, Plug Power, Royal Helium - why is helium becoming so important now?

  • Helium

There are niches in which a lot of money is earned because the companies produce something that either many customers need and it is protected by corresponding patents or it is a product that is particularly rare and therefore valuable. An important element of our modern society is for example helium. This inert gas is needed for magnetic resonance imaging (MRI) and semiconductors, among other things. It is also of decisive importance for the development and operation of rocket technology and space research. With the increasing electrification of everyday life and the opening up of the universe, interest in helium will increase - investors are beginning to position themselves.

time to read: 2 minutes by Mario Hose


 

Specifics of helium

There is no way to produce helium artificially and for this reason the available helium must be obtained from a small number of natural gas and inert gas reservoirs. The recent commissioning of natural gas liquefaction plants has helped to increase the amount of helium that can potentially be extracted.

Purified helium is usually liquefied by a cryogenic process prior to transport. The transport costs for liquid helium are therefore generally lower because the volume is significantly smaller than that of the gaseous state. Qatar is one of the world's largest exporters of helium, followed by Algeria and Russia.

Market of the inert gas

The main applications of helium include magnetic resonance imaging (MRI), welding, transport and laboratory applications. The MRI sector accounts for around 20% of the demand for the inert gas. About 14% of the helium is needed for welding. The largest single customer for helium is the US space agency NASA, which requires helium for pressure regulation in the fuel supply for space shuttles. With the increase in space activities and the associated rocket launches and space shuttle missions, the demand for helium is expected to continue to rise.

Also, budgets for space travel will certainly not be linked to the price development of helium. In other words, the price will not play a role for some customers, because overriding priorities are paramount. Other market participants will then be left behind.

Owner of large properties

Royal Helium from Canada is looking for additional reservoirs for helium production in the province of Saskatchewan. With more than 400,000 hectares of helium potential, the company is one of the largest holders of such properties in North America. The company also aims to become a leading producer of this high-quality resource. Due to the limited sources of the inert gas, prices are expected to rise further in the future. The company has already identified 12 targets for helium on its properties.

Focus on Saskatchewan

"Royals southeast Saskatchewan lands, which comprise roughly 50% of the total land holding, all show robust helium occurrences. With the strategy of full-cycle inert gas capture, refining and liquefaction, it is crucial to develop a large number of de-risked drill targets throughout the Company's significant land package. (...) The effectiveness of Royals exploration methodology, which has been demonstrated at Climax, will increase the speed with which we can de-risk these target areas," stated Andrew Davidson, CEO of Royal Helium.

Start of performance

While the two hydrogen companies Ballard Power and Plug Power have already gained significantly in company value, interested investors are increasingly looking for alternatives that still have price potential. Royal Helium is still at the beginning of its value development phase and currently has a market value of CAD 7.4 million. Ballard Power, on the other hand, has now reached a market capitalization of CAD 6.5 billion and Plug Power a market value of USD 2.9 billion.


Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold shares in the aforementioned companies and that there may therefore be a conflict of interest. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

03. August 2020 | 07:27 CET

Plug Power, Powercell Sweden, Royal Helium - why helium is facing hype

  • Helium

The world of noble gases has interesting applications and the number is growing. Helium and hydrogen are the most common elements in the universe and have a lower density than air. As an energy carrier and catalyst in combustion engines, hydrogen can be used in mobility to reduce CO2 emissions or as an energy storage medium so that fuel cells can generate electricity from the energy again. Hydrogen tanks can be used instead of batteries and are therefore particularly resource-saving - a major advantage over lithium batteries. Helium has a particularly large number of technical applications and in connection with digitalisation and the launch of space tourism, this inert gas has enormous potential.

Read

30. July 2020 | 05:50 CET

ITM Power, Nikola, Royal Helium - why investors are buying in now

  • Helium

Hydrogen is an interesting energy storage medium for modern ground mobility. The decisive factor for environmental protection, however, is the way in which the energy source is obtained. Green hydrogen is produced from renewable energy sources, i.e. electricity is used for its production, which is generated by wind turbines, solar panels or hydroelectric power. Helium is becoming increasingly important for mobility in space, because the inert gas cannot be produced artificially, but is needed to control rockets. This is a multi-billion-dollar business in which the money for innovations is very loose, especially when there is no substitute.

Read

13. July 2020 | 06:20 CET

dynaCERT, NEL ASA, Royal Helium - this stock really lifts off

  • Helium

The French astronomer Jules Janssen first discovered helium on our Sun in 1868. Since then, experts have discovered that the Sun consists largely of helium and hydrogen. In reference to the Greek sun god Helios, the discovered inert gas was called helium. After hydrogen, helium is the second most abundant chemical element in the universe. It is estimated that up to a quarter of the known matter in the universe consists of helium. However, helium is rarely found on earth and has been one of the critical raw materials in the EU since 2018. The list of consumers around the globe is headed by the US space agency NASA.

Read