While access to the inert gas is becoming limited, demand is growing and there is no direct substitute.
Joining the LSE Standard List by the end of the month is Georgina Energy PLC, which will provide investors exposure to the supply-constrained helium sector. While access to the inert gas is becoming limited, demand is growing and there is no direct substitute. The MRI scanners sector is the biggest consumer (30%), while it is also used for weather balloons. This imbalance was most evident at the last helium auction (yes, that is a thing) with prices rising 135%. Georgina is acquiring the EP127 licence in the Northern Territory, Australia, which has significant helium potential. It is raising up to £10mln, and has already secured over £2mln with strong expressions of interest for the balance, according to Proactive Research’s Ed Stacey, in his initiation note on the company. “We believe that Georgina Energy offers investors a unique opportunity to gain exposure to the helium supply squeeze,” he added. “The business plan offers strong profitability, modest capital requirement, and a fast transition to positive cashflow. “We argue that investors who enter at the IPO stage stand to benefit from substantial valuation upside if commercial volumes of helium are confirmed.”