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Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


Alex Kent, Managing Director, Aspermont Limited

Alex Kent
Managing Director | Aspermont Limited
613 - 619 Wellington Street, WA, 6000 Perth (AUS)

Corporate@aspermont.com

+61 8 6263 9100

Aspermont shows the success of digitalization - Alex Kent has an agenda


25. January 2021 | 07:35 CET

BYD, Royal Helium, Bayer - it's getting tighter and tighter!

  • Helium
Photo credits: pixabay.com

Who will prevail in the battle for the crown in the electric car business? According to experts, the innovation leader Tesla has a technical lead of two to three years. In contrast, the Chinese government supports domestic carmakers such as BYD, NIO and Xpeng with financial injections to achieve climate policy goals in the country. The first winners are already in place. Because of the arms race, there is an extreme demand for the necessary raw materials. In the next few years, there is a threat of severe scarcity and thus dramatically rising prices.

time to read: 3 minutes by Stefan Feulner


Andrew Davidson, CEO, Royal Helium Limited
"[...] We expect the first three wells to be drilled, cased, completed and tested by the second week of March [...]" Andrew Davidson, CEO, Royal Helium Limited

Full interview

 

Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Significant increase in demand

By 2050, 80% of all newly registered passenger cars worldwide could be on the road with alternative drive systems, or even 100% if ambitious climate protection targets are met. As the number of electric vehicles increases, so does the global demand for batteries. Assuming that the Paris Climate Agreement targets are implemented in the mobility sector, we expect demand for lithium, cobalt, and nickel to increase significantly by 2030. The development of rare earth metals is just as dramatic. Permanent magnets for electric motors are manufactured based on rare earth metals. In ten years, experts predict that demand for rare earth oxides for use in magnets will rise from currently USD 2.98 billion to USD 15.65 billion.

Health sector booming

According to experts at the German Federal Institute for Geosciences and Natural Resources (BGR), helium, the most abundant element in the universe besides hydrogen, is also facing a crisis. In the past two years, the supply has become noticeably scarcer and this development could continue in the future. The European Union has defined helium as a strategically important raw material. It is increasingly needed in the healthcare sector, such as for magnetic resonance imaging (MRI) scanners, particle accelerators, space travel, and construction of quantum computers. Therefore, it is all the more surprising that there are few listed helium players in contrast to hydrogen companies.

Share takes off

One Company that has caused a sensation in recent weeks is the Canadian Company Royal Helium. Royal Helium has access to 400,000 hectares of promising helium land in southern Saskatchewan, Canada, making it one of the largest helium leasing companies in North America. As a result, the share price rose from EUR 0.20 at the end of December to EUR 0.60 at its high. Currently, the share price is correcting somewhat and is presently quoted at EUR 0.49. However, the substantial rise in the share price is fundamentally justified. Royal Helium was able to close a significantly oversubscribed placement of CAD 6.15 million at the end of the year. The proceeds were immediately invested in the new drilling program for the Climax project and a three-well program was initiated in mid-January. Management expects results from the first drill holes within the next four weeks. The goal of the Company management is to increase the portfolio in 2021 significantly.

Fresh money for growth

Chinese automaker NIO led the way last week. The Company raised fresh money with two bonds totalling USD 1.5 billion. The two convertible bonds, worth USD 750 million each, mature in 2026 and 2027, respectively. Now the Warren Buffett-backed Company BYD is following suit. The sharply increased share price, peaking at over 400%, was used to secure USD 3.9 billion on the capital market by issuing new shares. BYD intends to use the raised capital for research and development and debt reduction, among other things. Competitor Xpeng raised USD 2.5 billion in the same way.

Here we go again

One had the feeling that some calm had returned to pharmaceutical giant Bayer concerning the glyphosate trial. The cooperation with the vaccine manufacturer CureVac and the expansion of the gene and cell therapy area with 25 new collaborations in 2020 promised a rosy future. Now, however, the Leverkusen-based Company is once again caught up in its Monsanto past. The "WirtschaftsWoche" reported that two law firms, Hausfeld and Tilp, have filed a lawsuit on behalf of various investors before the Regional Court of Cologne against the Bayer Group. According to the two plaintiffs, Bayer should have recognised the risk of legal action during the multi-billion-dollar takeover of glyphosate developer Monsanto and informed its shareholders accordingly.

In a statement, Bayer AG said it was convinced that it had acted at all times in line with its obligations and in accordance with applicable laws. Bayer's share price has recovered strongly to EUR 55 from a low of below EUR 0.40 at the end of October. After Friday's announcement, the stock corrected to EUR 52.30. It is now essential to hold the significant EUR 50 mark.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author



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 long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

04. March 2021 | 09:03 CET | by Stefan Feulner

NIO, Royal Helium, Xpeng - the fierce battle for raw materials!

  • Helium

The market price is determined by supply and demand. Due to the global climate programs of politics, the pressure increases and the demand grows enormously in the coming years. Raw materials such as rare earth metals, lithium, helium, copper or even silver will become extremely scarce commodities. There is a threat of drastic price increases. In recent years, significant investments in raw material projects have been neglected. To provide more supply, it will now be a race against time. In any case, the producers will profit.

Read

15. February 2021 | 10:00 CET | by Nico Popp

Linde, Royal Helium, Siemens Healthineers: Which stocks are stepping on the gas?

  • Helium

When it comes to commodities, most investors think of tangible elements, such as copper and gold, or at least liquid substances, such as crude oil. But gases are also a lucrative business. Companies such as Linde have been proving for years that investors can make money from gases. We present business models around gas that are rock solid and anything but volatile.

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01. February 2021 | 07:20 CET | by Carsten Mainitz

Royal Helium, Siemens Healthineers, Eckert & Ziegler - Is helium coming after hydrogen?

  • Helium

Hydrogen as an investment topic is on everyone's lips. No other chemical element has such a large occurrence in the universe (outside the earth's crust). But it could also be lucrative to look at the second most abundant element in the universe: helium. Helium has the lowest melting and boiling points of all elements. It is used in low-temperature technology, especially as a coolant for superconducting magnets, e.g., medical technology for MRI (magnetic resonance imaging) equipment. We present investment ideas associated with helium, ranging from the noble gas extraction to its use in certain products. Which stock has the most potential?

Read