One of the most up-and-coming investment trends is helium stocks. Although there is a shortage of helium, the demand is only going higher. Helium is a rare, inert gas that is essential for a wide range of industrial and medical applications.
Helium is used every day, from MRI machines and semiconductor manufacturing to welding and airships. As such, helium is in high demand and has a limited supply, making it a valuable commodity.
The Top 4 Helium Stocks to Buy
- Desert Mountain Energy (OTC: DMEHF)
- Avanti Helium (OTC: ARGYF)
- Royal Helium (TSX-V: RHC)
- Total Helium (OTC: TTLHF)
Helium Shortage Creates Opportunity
The helium shortage has been going on for several years now and is a serious concern for many industries. The helium market is almost finishing its second decade of shortages.
What began in 2006 has shown no real signs of slowing down. However, investors shouldn’t be discouraged by the helium shortage.
As mentioned earlier, helium is a crucial element used in a wide range of applications. When most people think of helium, they think of party balloons, but it’s actually used for more than you'd think.
It's used every day in medical equipment, semiconductors, aerospace, and defense technology, just to name a few sectors, and yes, also party balloons.
This situation creates a unique opportunity for investors. Simply put, it's one of the most underrated investment opportunities right now. The best way to capitalize on the helium shortage is by investing in helium stocks.
Is Helium a Good Stock Investment?
One of the reasons investing in helium stocks can be profitable is that helium is a finite resource. That means it’s becoming scarcer by the day. The less of it there is, the more valuable it becomes.
The majority of the world's helium supply comes from a few key sources, and these sources are expected to dry up in the coming years.
As a result, there is a growing demand for new helium reserves, and companies that can secure new sources of helium will be in a strong position to profit from this trend.
What Is the Best Helium Stock to Buy?
So you want to invest in helium? If you’re looking to gain exposure to the helium market, the four companies listed below stand the best chance to offer a significant return on their investment.
In my opinion, they are the best helium stocks on the market. By reviewing the companies below, you will have a better understanding of which helium companies are viable investment opportunities.
They are listed in no particular order. While all of these helium stocks have their various strengths and weaknesses, they all provide investors with ideal exposure to the budding helium market.
Desert Mountain Energy (OTC: DMEHF)
Desert Mountain Energy is a publicly traded exploration and development company that specializes in the exploration and production of strategic minerals. In addition to helium, the company focuses on uranium, hydrogen, and lithium.
The company is headquartered in Vancouver, Canada, and has operations in the United States — specifically in Arizona, Utah, and Nevada.
Desert Mountain Energy's focus on strategic minerals is driven by the belief that these minerals are essential components of modern technology and energy storage systems, making them critical for the transition to a low-carbon economy.
Currently, Desert Mountain Energy's pride and joy is the Holbrook Basin helium project. The project is located in Arizona, which is considered the “world’s best address for helium,” according to the Desert Mountain Energy website.
The Holbrook Basin project also boasts some of the highest helium grades in the world, claiming 8%–10%.
With a strong management team and a proven track record of success in the mining industry, Desert Mountain Energy is a company to watch in the coming years as demand grows and the Holbrook project only becomes more established.
Avanti Helium (OTC: ARGYF)
Avanti Helium specializes in the exploration and production of helium gas.
Avanti Helium is well-positioned to benefit from this growth in the industry. The company has a strong focus on sustainable and environmentally responsible production methods, which is becoming increasingly important in today's market.
It also has a highly experienced management team with a track record of success in the helium industry. The team is comprised of a group of oil and gas veterans who recognized the major opportunity in the helium industry and took action.
This team has demonstrated the ability to identify and develop profitable helium reserves and has the expertise necessary to operate and manage the complex production processes involved.
In addition to its strong management team, Avanti Helium has access to some of the most promising helium reserves in the world.
The company has already secured long-term supply contracts with major helium customers. This will provide a stable revenue stream for the future. As demand for helium continues to increase, these contracts are likely to become even more valuable. This gives Avanti Helium a significant competitive advantage in the market.
The big focus for Avanti Helium is the Greater Knappen project. The project spans an area close to 78,000 acres in southern Alberta and northwest Montana. The zone contains substantial quantities of nitrogen-rich helium deposits.
The best part? Avanti has 100% ownership of the Greater Knappen project.
Overall, Avanti Helium is a company that shows great potential as an investment. With a focus on sustainability, a strong management team, and access to valuable helium reserves, the company is well-positioned to benefit from the growing demand for helium.
Royal Helium (TSX-V: RHC)
Royal Helium is great helium stock to consider. Like Avanti Helium and DME, it shows promise as a potential investment. The company has a portfolio of helium exploration projects located in Saskatchewan, Canada, which are believed to contain significant helium reserves.
One of Royal Helium's key advantages is its strategic location.
Saskatchewan is known to have some of the highest helium concentrations in the world, and the province's stable political and regulatory environment provides a favorable investment climate.
Currently, Royal Helium holds 862,908 acres of land with plans for drilling underway. With 79 five-year permits and 21 one-year leases, it’s clear Royal Helium will be busy in the coming years.
This gives the company a competitive advantage in terms of access to valuable helium reserves and potential growth. In addition to its favorable location, Royal Helium has a strong management team with extensive experience in the resource industry.
The team has a track record of success in identifying and developing resource projects and has established partnerships with leading industry players, which provides access to expertise and funding.
Royal Helium has secured off-take agreements with major helium customers. This provides a reliable source of revenue as the company advances its exploration projects. These agreements are expected to provide a significant source of cash flow for Royal Helium as it ramps up production in the coming years.
Total Helium (OTCMKTS: TTLHF)
Total Helium defines itself as “a helium explorer and storage solutions company.” It is responsible for sourcing, producing, and delivering helium to customers worldwide.
The company has an extensive network of helium sources, including both natural gas fields and helium-rich gas reservoirs. Total Helium uses a variety of techniques to extract helium from its sources, including cryogenic distillation and membrane technology.
Total Helium is currently focusing on two projects. In Hugoton, Kansas, it's constructing multiple drill operations in the Hugoton gas field. There are over 200 potential drill sites. The company has already tested the ground and confirmed it is enriched with helium and natural gas.
The other main point of focus for Total Helium is a project that is just getting started in Arizona. Like DME, Total Helium’s project is in the Holbrook Basin. The company recently announced a purchase agreement for a joint venture in the Pinta South project.
The Pinta South project spans 27,192 acres and contains over 150 potential drill sites. Total Helium believes this region is the “ideal field” for helium production and is very excited for what the future holds.
In addition to its primary business of supplying helium, Total Helium is committed to sustainable practices.
The company has a comprehensive environmental and social responsibility program that includes measures to minimize its environmental impact, protect biodiversity, and ensure the safety and well-being of its employees and local communities.
Overall, Total Helium is a critical player in the helium industry and is well-positioned to continue meeting the growing demand for this essential element.