Mike Fagan,
Editor
June 14, 2023
We’ve been talking a lot about the global helium shortage of late.
Industry analysts call it Helium Shortage 4.0 because it’s the fourth time in the last two decades the world has experienced such a tightening of supply.
Prices have skyrocketed as a result.
Interestingly enough, there is no spot price for helium. Instead, buyers enter into individual contracts with sellers.
And those buyers are now paying upwards of US$1,000+ per thousand cubic feet (MFC) when, just a couple of years ago, they were paying a mere fraction of that.
Supply continues to be constrained… and much of what is available today is controlled by the Kremlin — and we all know the situation there.
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Other top producers include Qatar and Algeria… not exactly the most reliable trading partners for the United States and Canada.
Those factors are putting North America squarely in play in terms of future large-scale helium production from a stable and reliable source.
The United States boasts the world’s largest helium reserves at an estimated 8.5 billion cubic meters and is the world’s second largest producer.
Canada has the world’s fifth largest helium reserves, mostly in Saskatchewan, but produces only about 1% of the world's helium. But that’s all about to change.
The provincial government of Saskatchewan hopes to lift helium output to 10% of world supply by 2030 and, last year, unveiled new incentives for explorers and producers.
There are environmental advantages to drilling for helium in Canada as well.
Saskatchewan has one of the most highly concentrated helium resources in the world, which means it can support drilling for helium itself, rather than capturing the gas as a byproduct of natural gas production.
In other words, production can be achieved while avoiding most of the harmful methane emissions associated with helium extraction from natural gas.
Neighboring Alberta is uber rich in helium as well, which places Canada neatly at the center of the emerging global helium production story.
Best of all, it’s still early innings in the helium space… which means a contrarian buying opportunity is forming for foresighted investors who see the vast potential of Canada’s helium production capacity early on.
We’ve been following one such Canadian helium opportunity for quite some time.
It’s a small-cap helium firm out of Saskatchewan that controls over 4,000 sq km of prospective helium permits and leases across both Saskatchewan and Alberta.
It’s currently building its first helium production plant, which will be fed by two of the company’s 100%-owned helium wells.
The state-of-the-art plant will be up and running within the next couple of quarters, which means the company is right on the cusp of becoming North America’s next helium producer.
They’ve already signed multiple offtake agreements for their forthcoming helium production, including one with a well-known space exploration company.
Plus, we’re talking about refined helium gas that’s 99.999% pure, which is precisely what’s needed for usage across the medical, tech, energy, and aerospace industries.
In most instances, the helium gas is liquified for use in extremely low-temperature environments.
The up-and-coming company featured in our brand-new report has already announced that its refined helium gas will be liquefied in Colorado under a previously announced agreement.
And remember... the company’s land position is absolutely staggering… and it won’t be resting on its laurels with its current well count.
In fact, it has already initiated a high-resolution airborne survey over some of its highest-priority targets in Saskatchewan.
Speculators who read our in-depth report are going to quickly realize that this is one of those rare opportunities to get onboard with a company that’s clicking on all cylinders just below Wall Street’s radar.
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In fact, it’s currently trading quietly below 40-cents per share.
Those ultra-cheap shares could disappear in a blink as word gets out on the company’s pole position in Canada’s burgeoning helium industry.
As all contrarians know… the best time to be buying is when no one else is looking.
Mike Fagan
Editor, Daily Profit Cycle