Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) is being hailed as an exciting opportunity, with the company poised to transition from an explorer to a production-focused business.
Panmure Liberum analyst Ashley Kelty reiterated a ‘buy’ recommendation this week, setting a price target of 3.6p—significantly higher than its current AIM valuation of around 1p.
Kelty’s remarks followed the release of Helium One’s full-year results, which he described as “largely irrelevant given the transformative changes to the business since the period ended.”
In his ‘buy’ note, analyst Ashley Kelty highlighted:
“The expansion into the US through a farm-in agreement for a 50% working interest in the Galactica Pegasus project in Colorado, combined with the successful Itumbala extended well test (EWT) in Tanzania—which has prompted an application for a mining license—positions the company to advance the southern Rukwa Helium project.
“Upcoming drilling in Colorado could potentially generate maiden revenues as early as the first half of 2025, while the Tanzania development sets the stage for Helium One’s transformation into a production company.”
Kelty emphasized that investor focus would likely center on near-term activity in Colorado, where five new wells are planned. He noted that the company’s balance sheet is in “good shape,” thanks to more than £30 million raised in equity during 2024, leaving Helium One fully funded for the initial development phase at Galactica.
While acknowledging the need for additional funding in Tanzania, Kelty suggested that securing debt financing for the project could be a feasible option.
