Shares of Helium One Global Ltd (LON: HE1) surged 18.9% despite the lack of announcements from the company as bullish investors scoop up its shares.
The lack of news from the company makes us look at its share price chart for clues but given that it listed on London’s AIM on December 4th, there’s nothing much to decode from its price, except that it has risen quite a bit since its debut.
Helium One shares continue to trade in a bullish pattern to date and this is likely to continue given that it broke out of a consolidative price pattern at the start of the week (year).
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Turning to the company’s business, we see that it is a primary helium company with first-mover advantage within the Rukwa region in Tanzania, which has large helium reserves.
The firm is set to drill three wells this year using the funds raised when it listed on the AIM, but it is not yet clear when it shall start selling its helium in order to benefit from the high prices commanded by the gas in comparison to natural gas.
Helium One has a solid proposition in the form of the low costs of constructing a helium plant coupled with the low costs of operating such a plant and the high output of helium generated by the plant.
A positive update from the company would be welcome at this point, as it could fuel a rally to new levels given the bullish trend we are currently seeing, which is largely driven by rising demand for the company’s shares.
Helium One share price
Helium One shares rose 18.9% to trade at 8.40p having rallied from Tuesday’s closing price of 7.06p.