Pulsar Helium (AIM: PLSR) has had a lively few months, and anyone watching the chart will have noticed it. The share price jumped from about 22 pence on 17th September to roughly 56 pence by 15th October after a run of strong technical updates from the Topaz Project.
Since then, enthusiasm has cooled and the price has slipped back toward the mid thirties. The question retail investors keep asking is simple. Was the pullback just a healthy reset after excitement got ahead of the fundamentals, or did the market spot something more serious?
To answer that properly, we need to look at what happened on the ground, what happened in the funding structure, and why investors reacted so quickly once the company filed its base shelf prospectus on 16th October. What follows is a clear walk through of Pulsar’s current position.
A Young Company With a Clear Story
Pulsar is trying to become a primary helium producer rather than a by-product player, which makes it a little different from the wider industry. Most global helium supply comes out of hydrocarbon fields, so Pulsar’s focus on non-hydrocarbon systems sets it apart. The strategy is simple enough. If the company can prove that its helium rich gas systems are consistent and commercial, it can position itself in markets where domestic supply is tight.
The company is spread across three exchanges, AIM, TSX Venture and OTCQB. This gives it access to wider capital pools, but it also means investors will see a steady flow of RNS updates covering warrants, stock options and corporate actions. The operational story is centred on two assets. Topaz in Minnesota, which is the clear flagship, and Tunu in Greenland, which offers helium with potential geothermal upside. Both projects sit within regions where strategic supply arguments are becoming stronger.
Pulsar’s pitch is that the world needs independent helium sources, especially as industries such as medical imaging and semiconductor manufacturing keep expanding. The interest from investors has mainly come from the grades reported at Topaz, which are far higher than what is usually required for economic development. That is why the market reacted so quickly during September and early October.
Topaz: The Heart of the Investment Case
Topaz is the reason Pulsar has drawn so much attention. The discovery well, Jetstream 1, initially delivered helium concentrations in the mid-teens, which is impressive by global standards. The company then confirmed sustained 7-8% helium across Jetstream 1 and Jetstream 2. When you consider that 0.3% is often seen as a workable threshold, you can see why investors took notice.
Pressure and flow results helped the story along. Early testing suggested around 1.3 million cubic feet per day under compression and roughly half a million cubic feet per day on natural flow. These numbers need more work before they are taken as definitive, but they helped frame Topaz as something more than a single well curiosity. Jetstream 3 later hit gas with about 1,000 psi, and Jetstream 4 had another pressurised gas encounter, which fed the view that the system is charged.
There is also the helium-3 angle, confirmed in early October. It is not the main part of the investment case, but given that helium-3 is estimated to be worth up to US$18.7 million per kilogram, more than 100,000 times the price of common helium (helium-4), it does add speculative interest.
Tunu: A Longer Term Option in Greenland
Tunu is a very different project and sits on a much longer timeline. It’s 100% owned and is based on nitrogen rich gas with helium concentrations of up to 0.8 percent, which is a strong starting point for a system that has not yet been drilled at depth. Hot spring temperatures between eighty and one hundred and ten degrees Celsius also raise the possibility of geothermal integration, which may support local energy demand in remote areas.
The company has brought in Sproule ERCE to carry out pre-feasibility work. That review will assess resource potential, development pathways and whether geothermal generation can be tied into the broader project. It is still early stage, but it gives Pulsar a second asset outside the United States and a possible strategic link to Europe, where helium supply remains heavily import dependent.
Investors should see Tunu as a background value line rather than an immediate driver. It is there to provide optionality and long term depth rather than near term excitement.
Funding, Working Capital and Dilution
If there is one area retail investors should watch most closely, it is funding. The financials to June 2025 show limited cash and a working capital deficit, which is typical for a company doing multiple wells at once. It also means that Pulsar relies heavily on external capital to maintain momentum. The accounts include clear going concern language, which is never surprising at this stage but should always be noted.
The company has a layered capital structure with many warrants and options. Several RNS updates in recent months have shown ongoing exercises, including a major investor exercising warrants worth about CAD5.6m. This brings cash in but also expands the share count (dilution).
The most important corporate step came on 16 October when Pulsar filed its preliminary short form base shelf prospectus. This gives the company the right to issue a broad range of securities over the next twenty five months. It does not force them to raise capital, but it clearly signalled to the market that further financing is likely. The share price reacted immediately because traders priced in that risk.
Why the Shares Jumped and Then Dropped
The rally into mid-October was driven almost entirely by operational updates. Sustained 7-8% helium, more pressurised gas encounters and confirmed helium-3 created a sense that Pulsar was moving past discovery and into appraisal. That was enough to take the shares from c.22GBX in mid-September to 56GBX by 15th October. Many retail investors were buying on momentum, and the chart moved very quickly.
The drop that followed was almost entirely driven by funding signals rather than technical setbacks. As soon as the company filed the base shelf, traders assumed further equity raises were coming. The reaction was sharp, and the share price slipped back quickly. Not long after, a major shareholder trimmed its holding, which contributed to another 14% dip. Add in constant warrant and option exercises, and you have the full picture.
What matters is this. Nothing in the subsurface data has deteriorated. The pullback is a financial one rather than an operational one.
Why Retail Investors Might Still Be Interested
The headline attraction is grade. Very few early stage helium explorers have reported anything close to the concentrations seen at Topaz. Grades in the seven to eight percent range stand out in a global context, and early flow data suggests that the reservoir may hold up under further testing. The multi well pressure readings also help reinforce the view that the system is both charged and laterally consistent.
The land position at Topaz is large, and only a fraction has been studied properly. As appraisal continues, investors may see a clearer path toward defined resources and development studies. The presence of helium-3 adds a speculative layer that some investors will enjoy, even if it is not central to the commercial case. The proposed Michigan acquisition and the progress at Tunu add optionality.
There is also the matter of shareholder support. The large warrant exercise that brought in more than five million Canadian dollars shows that major investors remain engaged. For a company at this stage, that is meaningful.
The Risks That Investors Should Keep in Mind
Despite the strong grades, Pulsar is still at the beginning of its journey. The biggest technical risk is whether the reservoir delivers commercial flow rates across multiple wells. Early results are encouraging, but nothing is proven until the company completes its appraisal work.
Funding risk is unavoidable. The company needs capital to progress both Topaz and Tunu, and the base shelf makes it clear that more financing tools are being prepared. That means dilution is likely, and retail investors should expect it. The balance sheet at June 2025 reflects that reality.
In addition there are regulatory hurdles in both Minnesota and Greenland, and wider inflationary pressures in drilling and processing. These factors could affect project timing and costs, and retail investors should factor that into their thinking. That said, should the ongoing Topaz appraisal confirm commercial flow rates across multiple wells, the scale of potential economic value this helium resource could deliver to the State would make a compelling case for Minnesota to accelerate legislation supportive of production.
Final Reflection: A Good Story with Work Still to Do
Pulsar has delivered several impressive technical steps in a short period. The helium grades at Topaz are rare, and the pressurised gas encounters across multiple wells point to a system with real potential. Tunu adds long term depth, and the company has managed to attract interest from institutional investors. For any early stage helium explorer, that is a solid foundation.
The challenge is funding. The base shelf was the right corporate tool but arrived at a moment when the share price was stretched. The reaction was immediate and sharp. For now, the technical story looks intact, while the financial side needs clarity. Investors will be watching the next appraisal results closely, along with any move to secure development partners or structured funding.
If the company manages to balance technical progress with a clear funding strategy, the recent pullback could end up looking like an opportunity. If not, it may prove to be a reminder that strong discoveries still need disciplined financial planning to make it all the way through to development.You can join the discussion on Pulsar Helium on Yakkio’s City Ticker Hub Pulsar Helium page.
Disclaimer: The information presented in this article represents the opinions and research of the author and is provided for informational purposes only. It is not intended to be, nor should it be interpreted as, financial, investment, or legal advice. Investors are encouraged to perform their own due diligence and consult with qualified financial advisors before making any investment decisions. Investing in small-cap stocks involves significant risks, and past performance is not indicative of future results. The author and publisher are not liable for any financial losses or actions taken based on the content of this article.
