The average return so far of the Canada-listed helium stocks we identified on May 16, 2019, is 316%
SmallCapPower | October 9, 2019: Recently, the BBC reported that the price of crude helium has increased by 135% year-over-year as of September 2019. The United States has been the world’s dominant producer of helium for nearly 100 years, which began with the Federal Helium Reserve (FHR) in 1925. The FHR was originally set up as a strategic store for U.S. airships but since 2013 has auctioned its supplies annually. The last time the U.S. auctioned off helium was in August 2018, with another auction not expected until 2021. As a result, there has been a supply shortage of helium. Other than balloons, helium has uses in the space industry, where it is used to keep satellite instruments cool and clean out rocket engines. Helium is used as a cooling medium for the Large Hadron Collider (LHC) and the superconducting magnets in medical MRI scanners and a mixture of 80% helium and 20% oxygen is used by deep-sea divers. Helium is also used in fiber optic cables, microscopes, airbags, blimps, and computer chips. On May 16, 2019, we first introduced you to three Canada-listed helium stocks that could benefit from a supply shortage of helium. Today, we revisit these stocks to see how they have performed since.
*Share prices as at October 7, 2019, data obtained from S&P Capital IQ
Royal Helium Ltd. (TSXV:RHC) – $0.105
Royal Helium is a Canada-based company engaged in the exploration and evaluation of helium & other natural gas reserve properties in North America. Currently, RHC does not have any active exploration, development or production projects, and is in the process of examining business opportunities as well as evaluating suitable assets or businesses to acquire or merge with.
- Market Cap: $3.8M
- Share Price on May 16, 2019: $0.015
- Return Since May 16, 2019: 600%
- 90-Day Average Trading Volume: 18,650
Desert Mountain Energy Corp. (TSXV:DME) – $0.29
Desert Mountain Energy is a Canada-based exploratory resource company, engaged in exploration and development of mineral and helium properties in Canada. The Company is an owner of a United States-based subsidiary named Desert Energy Corp, which is commencing exploration and development of oil & gas and mineral properties in the southwestern United States. On September 5, 2018, the Company sold its Yellowjacket Gold Project and is now focused on developing helium production. On May 13, 2019, Desert Mountain Energy announced that it had discovered helium in concentrations of 1.36% on its Oklahoma Kight-Gilcrease Property. The property is located in an area of Oklahoma that has been known to host helium-bearing gas wells, with commercial production grades ranging from 0.6% to 1.4% He.
- Market Cap: $10.6M
- Share Price on May 16, 2019: $0.18
- Return Since May 16, 2019: 61%
- 90-Day Average Trading Volume: 36,830
American Helium Inc. (TSXV:AHE) – $0.35
American Helium is a Canada-based helium exploration and property development company that develops helium assets across North America. AHE explores for helium on its acreage, which covers approximately 17,000 acres. American Helium Inc generally serves the healthcare, military, nuclear, electronics, aviation, and research sectors with its helium supply. Recently, AHE stated its difficulties in raising enough capital to continue its planned acquisition, exploration, and development within the helium energy sector, and has decided to exit the industry.
- Market Cap: $13.6M
- Share Price on May 16, 2019: $0.09
- Return Since May 16, 2019: 288%
- 90-Day Average Trading Volume: 38,980
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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