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Jim Payne, CEO, dynaCERT Inc.

Jim Payne
CEO | dynaCERT Inc.
101-501 Alliance Avenue, M6N 2J1 Toronto, Ontario (CAN)

jpayne@dynacert.com

+1 416 766 9691

dynaCERT CEO Jim Payne on attractive hydrogen opportunities


Sebastian-Justus Schmidt, CEO and Founder, Enapter AG

Sebastian-Justus Schmidt
CEO and Founder | Enapter AG
Ziegelhäuser Landstraße 1, 69120 Heidelberg (D)

info@enapterag.de

Enapter AG CEO and founder Sebastian-Justus Schmidt on the future of hydrogen


John Jeffrey, CEO, Saturn Oil & Gas Inc.

John Jeffrey
CEO | Saturn Oil & Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary, AB (CAN)

jjeffrey@saturnoil.com

+1-587-392-7900

Saturn Oil & Gas CEO John Jeffrey on the future of the company and ESG


29. December 2020 | 10:50 CET

BYD, Royal Helium, Xpeng - Take advantage of this opportunity!

  • Helium
Photo credits: pixabay.com

Be honest, would you have believed in such a rise in electric cars 5 years ago? The era of internal combustion engines seems to be over; lithium battery-powered vehicles like Tesla, BYD, Nio and in the near future, Apple are having a hard time keeping up with the orders. It goes unnoticed that the important light metal lithium is becoming increasingly scarce. The drastic excess demand for the second most common element in the universe after hydrogen looks similar. The advantage, this trend has not yet been noticed on the capital market. Take advantage of this opportunity!

time to read: 2 minutes by Stefan Feulner


 

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


Limited choice of players

While hydrogen companies are sprouting like mushrooms, the selection of pure helium companies on the stock market is scarce. It is surprising, as the demand for helium is growing significantly in both the healthcare and manufacturing sectors. In addition, the space sector is becoming increasingly important. NASA, for example, is already the largest single customer for helium trading. When rockets are launched, helium is needed to regulate the pressure of the propellant tanks.

One Company that could become a top pick at the moment is the Canadian Company Royal Helium. Royal Helium has access to around 400,000 hectares of promising helium land in southern Saskatchewan, Canada, making it one of the largest helium leasing companies in North America.

Studies show huge potential

Back in November, it was announced that an engineering study for a large-scale industrial gas generation facility based in Saskatchewan was being initiated by Royal Helium and conducted by the Saskatchewan Research Council. The study is intended to demonstrate a large-scale facility's economic potential to separate and monetize the gas streams associated with helium production wells in Saskatchewan.

Helium is produced along with large volumes of other inert gases for a large global market. According to Royal Helium CEO Andrew Davidson, helium production economics can be significant in their own right. However, commercialization of other gases could add significantly to net cash flow.

Significantly oversubscribed placement

Initially, Royal Helium was looking to raise CAD 4.0 million in gross proceeds in a private placement. Since the explorer's paper's demand was so high, it was initially increased to CAD 5.0 million. At the end of last week, the significantly oversubscribed placement closed with CAD 6.15 million gross proceeds. The offering's net proceeds will be used primarily to fund Royal's first helium-targeted exploration drilling at its 100%-owned Climax helium project in southwestern Saskatchewan.

Currently, Royal Helium is trading at EUR 0.26 in Frankfurt. Due to the positive news flow of the past weeks, the share has moved significantly away from its lows at EUR 0.16. In addition, a significant increase in volume is also noticeable in Germany. The Cormark Securities analysts gave a target price of CAD 0.80, equivalent to EUR 0.51, although this was before the capital injection.

New plant and cooperation

The news agency Reuters reports, BYD is planning a new factory for electric vehicle batteries with an annual production capacity of 20 GWh in the city of Bengbu in the eastern Chinese province of Anhui. The total investment is expected to be around EUR 750 million. The Warren Buffet-backed group already owns three battery plants at its headquarters in Shenzhen, Qinghai, and Guangdong.

To increase its brand awareness in Japan, the "build your dreams" Company also announced an unusual cooperation. Shortly before Christmas, a partnership with the Japanese baseball team Hokkaido Nippon-Ham Fighters was established. The baseball team plans to open the Hokkaido Ballpark F Village in 2023. For this, BYD will provide zero-emission products such as electric buses, forklifts, etc. The park is expected to cover an area of more than 32 hectares.

Launch in Europe

Competitor Xpeng also has ambitious expansion plans. So the Chinese started their European strategy with the most important electric car country, Norway. 100 units of the SUV G3 were handed over to Scandinavia. The expansion is to extend to the whole of Europe gradually. Xpeng is currently exploring opportunities in other mature electric car markets with government support, modern infrastructure, and a lot of interest in electric vehicles.


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:

11. January 2021 | 08:50 CET | by Nico Popp

NIO, Royal Helium, Linde: Here come the long-runners of tomorrow

  • Helium

Anyone who bets on trending stocks on the stock market knows the problem: it's hard to chase the prices and get in after significant price increases. But sometimes the market is just crazy and tends to exaggerate. Despite rocketing rises, some stocks keep climbing. Investors with great courage nevertheless jump at the chance, as in the case of the hydrogen share NEL, which has rushed from record to record. Those who pay more attention to risk look to second-tier stocks that are yet to make a chart breakout. The important thing here is that the associated investment story also has something to offer - such as with the Chinese electric car pioneer NIO.

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23. December 2020 | 09:01 CET | by Carsten Mainitz

Linde, Royal Helium, BASF - Explosive news this year?

  • Helium

A wide range of applications is leading to increased demand for various gases and chemical compounds. Hydrogen is a prominent example, and the shares of companies in this sector are booming. Investors should also take a look at industrial gases and helium. Helium is used in medical technology and in the production of high-tech products. We present three promising companies.

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20. November 2020 | 11:10 CET | by André Will-Laudien

Air Liquide, Linde, Royal Helium: Air Anchor

  • Helium

According to PWC, sustainability is a crucial issue for the oil and gas industry. Until now, the core of existing sustainability strategies has primarily involved compliance with regulatory requirements in the areas of health, employee well-being and safety. For some years now, renewable energies have been on the upswing, and decarbonization is the order of the day, posing new challenges for the sustainability strategies of oil and gas companies. Current climate policy, pressure from shareholders and the public, and the investment strategies of major financial institutions are forcing companies to invest in the use of "green" energy sources and reduce their emissions. Through improved technologies and processes, ecologically generated electricity is becoming increasingly competitive.

On the one hand, it can be seen as threatening, but also an opportunity for business models in the oil and gas industry. Their well-known representatives will continue to play an essential role in the global energy mix for the foreseeable future. For all companies in the industry, this situation represents a balancing act. They must develop transparent sustainability strategies to safeguard their traditional business areas. Still, at the same time, they must also take advantage of new opportunities and seize those arising from the transition to a climate-neutral economy.

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