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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".

Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".

John Jeffrey, CEO, Saturn Oil + Gas Inc.

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


Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"

07. September 2021 | 12:04 CET

SMA Solar, Royal Helium, RWE - Supply is becoming increasingly scarce

  • Helium
Photo credits:

Whether for cars or consumer electronics, hardly any machine can do without microchips anymore. Since the beginning of the year, the shortage of semiconductors has been throwing the automotive industry out of step and causing production downtime and short-time work. Meanwhile, there is no end in sight to the supply crisis. Shortages stretch as far as the eye can see, while demand increases due to technological advances. Demand is also rising enormously for raw materials needed to decarbonize the economy.

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



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

The decade of raw materials

Looking back at the past year, 2020, the failure of global supply chains stands out, in addition to the outbreak of the Corona pandemic. Everything became more expensive. Wood, plastic, even the price of bicycles shot up - if you could still get hold of one. The former has now returned to normal, but experts believe that the chip shortage will be with us until at least 2023. The situation is different for the raw materials needed for climate change. In addition to copper, demand for lithium, cobalt, nickel and rare earth metals will skyrocket exorbitantly, and there is already a supply deficit. Helium, the most abundant element in the universe besides hydrogen, will also be in short supply.

Experts at the German Federal Institute for Geosciences and Natural Resources (BGR) have been warning of an impending helium crisis for some time. The supply has recently fallen sharply worldwide - and is lower than it has been for almost 20 years. Therefore, the European Union classifies helium as a strategic raw material, and the US government even speaks of a critical element. But here, too, demand is growing, primarily due to the increasing need in the healthcare sector, especially in diagnostics. It is impossible to operate a magnetic resonance imaging (MRI) scanner without helium. There has also been a sharp rise in demand from the chip manufacturing industry and quantum computers production in the recent past. The booming space business around the new astronauts Bezos, Musk and Branson are also dependent on large quantities of helium.

Scarce producers

The growing volume of demand, however, is matched by a sparse supply. Canada's Royal Helium is focused on exploring and developing a major helium production project in southern Saskatchewan. With over 400,000 hectares of prospective acreage held under permits and leases, Royal is one of the largest helium producers in North America.

The Company's development, which has a market capitalization of only EUR 12.17 million, has been extremely positive in recent months. In addition to a successfully placed CAD 17.2 million capital increase, test drilling at the Climax I to III projects showed commercially viable helium concentrations, allowing Royal Helium to move directly into production and generate cash flow. Compared to gold production, helium allows a drilled hole to be put into production immediately.

In addition, Royal Helium received drilling approval for its fourth helium well on the Climax block in southwestern Saskatchewan. Climax-4 will specifically target the new regolith helium discovery zone to produce the helium found in this formation at the Climax-3 location and is permitted for production. It is expected that the well will be drilled to a total depth of approximately 2,700m. While Climax-4 is being tested, the rig will be moved to southeast Saskatchewan to drill the first well on the Bengough land block.

For Andrew Davidson, CEO of Royal Helium, this marks another milestone in the Company's history: "We are pleased to have multiple, high-impact activities underway over the next several weeks and months - getting the Climax Regolith reservoir defined and on production and drilling 6 new wells over 3 separate land blocks in southeastern Saskatchewan where the highest historic helium concentrations have been recorded."

Royal Helium's shares corrected to a current EUR 0.32 in the wake of the corporate action, down from a high of EUR 0.63 in May. An attractive opportunity to participate in the long-term helium trend.

Slump after reduction

The supply chain bottlenecks are not stopping at solar technology group SMA Solar. Sales and earnings forecasts were lowered, and the share price fell by more than 10% as a result. The SMA board now expects full-year sales of between EUR 980 million and EUR 1,030 million (previously: EUR 1,075 million to EUR 1,175 million) and EBITDA of between EUR 50 million and EUR 65 million, down from a previously estimated range of between EUR 75 million and EUR 95 million. At a current price of EUR 37.16, several supports have been breached. The next one is at EUR 35. Currently, there is no urgent need for investment in SMA Solar.

The green group

The transformation of RWE into one of the largest green power companies continues unhindered. Growth takes precedence over dividends at RWE. The turn to green energy is also viewed positively by analysts. Credit Suisse left the rating at "Outperform" with a price target of EUR 35.70. Goldman Sachs also continues to place the DAX stock on its "Conviction Buy List" and believes the Essen-based Company has a target price of EUR 47.

The shortage of raw materials is one of the dominant themes of the next few years. When it comes to the critical element helium, the Canadian Company Royal Helium stands out. RWE is viewed positively by analysts due to its transformation into a green power provider. In contrast, the experts are likely to be less euphoric about SMA Solar.


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:

17. September 2021 | 11:23 CET | by André Will-Laudien

NEL, Royal Helium, Linde, BASF - This is where it gets highly explosive!

  • Helium

How will the energy transition play out in Europe? With hydrogen is one way. It is costly to produce if you look at the issue sustainably. The raw material itself is seen as an alternative building block of a green future and, according to experts, could become one of the most important energy sources in the coming decades. The water element is available in abundance, but what is lacking is a truly environmentally friendly way to convert it back into hydrogen and oxygen. Even under the best conditions, green hydrogen costs about 10 times as much to produce as Russian natural gas, which also burns fairly cleanly overall. What is next for this sector?


05. July 2021 | 12:31 CET | by Stefan Feulner

Nel ASA, Royal Helium, Siemens Energy - In the fast lane

  • Helium

Hydrogen can power electric motors, store energy and heat homes with the help of fuel cells. Because of these properties, the most common chemical element in the universe plays a vital role in the energy transition and CO2 neutrality. Shares in hydrogen companies were the stars of the stock market sky last year, alongside electric carmakers. Then came a sharp correction. Currently, most companies have finished their bottoming phase and are turning north again. Do not miss the second chance!


01. July 2021 | 11:12 CET | by Nico Popp

Siemens Healthineers, Royal Helium, Linde: Three stocks with momentum

  • Helium

Good health is the most valuable commodity. Especially those who have everything materially want nothing more than to remain healthy in the case of illness. People are also becoming more circumspect when it comes to preventive checkups. A few years ago, the cliché prevailed that men, in particular, gave doctors a wide berth. Today, prevention and regular checkups are considered a must. In this context, imaging techniques are becoming increasingly important: Whether an intervertebral disc or cardiovascular problem - modern medical technology equipment allows doctors to closely monitor and make the appropriate diagnoses.