By James Hyerczyk
If I told you that there’s a rare gas that could make a windfall for a few smart investors, would you believe me?
Well, Amazon, Facebook, and Google seem to think so. Because they’ve been hoarding this gas like crazy.
Because our modern day technology wouldn’t exist without it. It’s used in…
And this valuable gas is CRITICAL for running giant data centers. (Like the ones used by Amazon, Facebook, and Google).
Because it’s the only element that you can cool to -450°F (which is almost the lowest possible temperature in the universe). And having a super-cooling gas helps these data centers to run without burning out…
So, basically, without this rare element… you would have a difficult time surfing Netflix or Facebook.
And as these companies get bigger, the demand for this gas should only go up.
So, what is this rare gas?
While most investors are focused on lithium, hydrogen, and oil. Helium is quickly becoming the most important element for these trillion dollar tech companies.
Because according to Dr. Lee Sobotka, a professor of Chemistry and Physics from the Washington University in St. Louis, “Helium is non-renewable and irreplaceable.”
Which means that we have a limited supply of helium. And these tech companies are smart enough to see that, that’s why they’re fighting over it.
Now, that’s bad news for big tech because it drives prices higher. It’s great news for helium companies as well as their investors.
And that’s why the president of IACX Energy says “It’s a good time to be in the helium business.”
In fact, the CEO and CIO Of Global Investors says that helium is “soaring on red-hot demand, [with] shrinking supply.“
Just look at how helium prices have “ballooned” in the last decade:
And we all know what happens when the supply of a valuable resource goes down, and the price goes up. It creates a literal gold rush for investors.
For example, just a few years ago…
When Tesla (and other car manufacturers) started using lithium to create electric vehicle batteries, lithium quickly became one of the most valuable resources on the planet.
And that sparked the Lithium boom that we saw from 2016-2020. During that time, we saw lithium stocks shoot up by as much as 1,000%…
We’ve also had other “gold rushes” like cannabis stocks, electric vehicle stocks, gold stocks, and more…
And while those opportunities are gone forever…
There’s something even bigger that’s happening right now. And there aren’t many do-overs in life, but the “Helium Gold Rush” is about to give investors a second chance…
In fact, it’s already starting…
Let’s look at a company called Desert Mountain Energy Corp. They’re one of the few companies who are mining Helium inside of the United States.
And they saw their shares skyrocket from 25 cents on May 22, 2020, all the way up to $3.49 on May 24th 2021.
That’s a 1,249% METEORIC gain!
And there’s also Avanti Energy, who saw something similar happen. On November 11, 2020, the Avanti stock was worth 22 cents $.22, and as of this week, on September 15th 2021, the stock is now worth $2.07!
Of course, their secret to success has been helium exploration in North America…
And while these companies already saw their share price spike, there’s one company that investors need to look at right now.
It’s called Global Helium Corp (HECOF).
Moreover, this vast new reserve is so vital to sustaining modern life, that brand new infrastructure to process the now-precious helium gas has just been completed and brought online.
In a helium crisis, the world will survive without high floating party balloons…
It’s early stage helium exploration… run by a veteran crew of industrial gas exploration experts… that sports new-to-the-stock-market shares that could be considered at a pre-liftoff price.
That low price aside , from an investor’s standpoint the other important fact about Global Helium Corp. (HECOF) is this:
Global Helium (HECOF) is in business for a compelling, one-of-a-kind reason.
Companies that use helium – now desperate for a reliable supply – asked the veteran explorers to go into business and drill for helium.
Hence, Global Helium Corp. (HECOF) was born.
That means, as one of today’s very few helium explorations, Global Helium (HECOF) is ideally positioned because of its first-mover advantage.
Today, the opportunity to invest in a first-mover such as Global Helium (HECOF) was created during the U.S. government’s late 20th century obsession with privatization.
That’s when it ordered the Federal Helium Reserve to sell off its helium to private industry.
It did that at well below market prices.
Now, the reserve holds about 3 billion cubic feet of government-owned helium, and about 2.4 billion cubic feet of privately owned helium.
And this is why a young company such as Global Helium (HECOF) could suddenly become such a critical player in modern-day life.*
That’s because Global Helium (HECOF) may be a micro-cap, but size does not matter to the semiconductor and MRI diagnostic industries.
They run on helium.
Helium is the critical element at the heart of the $1.3 trillion worth of electronic systems that were manufactured in 2019.
You never hear about helium when analysts talk about Apple Inc, Microsoft, Samsung, LG et al.
Yet, helium is critical to manufacturing semiconductors, which do the computing, storage, and communication functions in most all electronic products.
So, semiconductor chips are at the heart of the gadgets consumers use constantly – smartphones, tablets, PCs – as well as industrial, medical, automotive, and defense electronics.
The vast majority of chips are made with silicon. It’s how Silicon Valley got its name.
But, silicon needs to go through extensive processing to create the specific circuitry for each chip.
This is where helium comes in… why Global Helium’s (HECOF) supply could be so important.
Unlike Global Helium (HECOF), which drills for helium in Saskatchewan’s dust and dirt, winter’s snow, rain, slush, and summer’s heat… semiconductors are made in ultra-pristine conditions.
These modern chip fabrication plants cost billions of dollars to build. Each piece of equipment costs millions.
Because it has several properties, helium serves multiple functions in the manufacturing process.
Most importantly, it is an inert gas, which doesn’t react with other elements. So having an inert gas around the silicon prevents any unwanted reactions.
Helium also has a high thermal conductivity, meaning it conducts heat away effectively.
This helps to control the temperature of the silicon during these processes.
This is increasingly important as the dimensions of the circuitry on the silicon continue to shrink.
It would be impossible to drive this miniaturization without the process control that helium provides.
Finally, helium is used because of its cooling properties.
All of this represents an enormous investment by some of the biggest companies in the world, and all of it hinges on helium.
That’s why in the ever-growing demand for electronic devices, any critical piece of the supply chain, such as helium, represents an excellent opportunity for investors.*
And, while there are no guarantees, Global Helium (HECOF) could soon become a strong link in the helium supply chain thanks to its vast holding in what could be the world’s most important new helium reserve — western Saskatchewan.
So semiconductors need helium… but truth be told, the world might stumble along for a few years without new mobile phones and Xboxes.
But a lack of access to a ready supply of helium could become a life-or-death problem in medicine.
That’s because helium is at the heart – you could even say the heartbeat – of MRI diagnostic machines.
Here’s how that came about.
Many metals become superconductors when they are chilled to a point close to absolute zero – minus 459.67 degrees Fahrenheit.
At that ultra-low temperature electricity can flow smoothly through metal without friction.
So, among its other applications, one of helium’s most important uses is it makes possible the powerful electromagnets used in magnetic resonance imaging.
MRI’s are an important medical diagnostic tool. More accurately, an MRI machine generates medical imaging by using a strong magnetic field and computer-generated radio waves to create detailed images of a human body’s organs and tissues.
And, as you likely know, Magnetic Resonance Imaging is one of the game-changing technologies in the medical community.
MRI allows medical professionals to collect important information about their patient’s condition without exposing them to radiation.
It provides an amazing level of clarity and excels at examining soft tissues such as the brain or muscles.
In order to function, MRI scanners require a coolant that will give the magnetic coils in the scanner super-conductive properties. That allows the electrical current to flow through the low resistance coils, enabling the generation of high-intensity magnetic fields.
Liquid helium is the perfect element – cold enough to provide the levels of superconductivity required in MRI scanners.
So, helium is critical to the healthcare industry, yet helium prices have spiked 135% to $160/mcf from a 2017 price.
Moreover, in general, liquid helium can be quite expensive compared to other elements.
Late last year, scientists at the University of Idaho were paying $35 a liter while University of Florida scientists were paying $25L, but hearing rumors of $60L.
That’s life in a crisis.
When it comes to MRI machines… needs vary.
For instance, a Philips Intera system with the F2000 magnets consume about 0.025 to 0.04% of it’s helium capacity per day, which results in a loss of about 1% a month.
A Toshiba Vantage Titan, with an OR76 magnet, consumes about 0.1% to 0.14% per day for a loss of about 4.2% per month.
While the Siemens Symphony, with the OR70 magnet uses around 0 .1% to 0.2% of its liquid helium capacity per day. That adds up to a loss of up to 6% a month.
Assume a hospital in the middle of the road, with a MRI scanner based on the OR76 magnet. That machine will need to be filled to capacity with 1800 liters of helium.
But, it loses about 4% of its helium capacity a month… or about 48% per year.
That means over the year it needs to be topped with 864 liters of helium.
Assuming the price of liquid helium is around $30L it will cost the hospital about $25,920 a year to keep a single MRI scanner topped off with liquid helium.
With more than 50,000 worldwide, MRI scanners are a major factor why the global helium market is forecasted to reach $18.2 billion in 2025.
Between semiconductors and MRI machines alone you can see why demand for helium has never been higher than it is today.
Domestically, a significant shortage is due to commitments with government contracts, high international demand, fewer new sources, and waste.
And, don’t lose sight of the fact that Google, Facebook, Amazon, and Netflix are trying to stockpile helium.
It’s thanks to 2013, that’s when computer scientists finally perfected the helium “hard” drive to replace the metal hard drive.
Now Silicon Valley’s thirst for helium may be unquenchable.
After all, according to Yahoo!, some 3.7 billion people are generating about 2.5 quintillion bytes of data every single day.
Those numbers may expand by up to 60% a year, so by 2025 usage will generate a projected 160 zettabytes a year.*
Without helium drives, that would be a volcano of computer-generated heat.
Across the board, the crisis puts industries in a supply bind.
The solution, of course, is more supply.
And that is why there is so much excitement about Saskatchewan helium. It is the rare place in the world that produces helium unencumbered by oil and gas.
These pure helium wells are very different from U.S. wells that are based upon oil and gas explorations.
Saskatchewan’s helium wells are deeper and more pressurized.
Yes “deep” means it is marginally more expensive to extract the helium, but the pressure pushes the gas to the surface faster.
And, because it only flows to the surface mixed with a bit of nitrogen – no oil, no natural gas, processing is easier, cheaper and greener than that for hydrocarbon distillation.
And, never forget, when it comes to exporting, Canada enjoys a favorable geopolitical situation, unfettered by political sanctions or export restrictions.
Global Helium’s land position is in the heart of a well-known helium fairway with production, reserves and significant activity nearby.
In fact, it’s not hyperbole to think that Global Helium (HECOF) has landed in what may well become one of the world’s great natural resource locations.*
That’s because Saskatchewan was once famous for its helium… with huge flows back in the late 1900s and early 1970s before a price slump killed the industry.
And, as noted, Western Canada has an advantage over other new sources of helium in that its best reserves are found in pools made up of 95% nitrogen, according to Scott Mundle, an assistant professor and researcher at the University of Windsor in Ontario.
He’s been studying samples from helium explorers.
Best of all, the nitrogen can be safely vented into the atmosphere after the 2% helium content is removed, because the Earth’s atmosphere is made up of about 78% nitrogen.
The high pressure in reservoirs found deeper than 1.5 miles means wells can be productive for years before being depleted, Mundle said.
He said, they’ll outlast the shallower pools found elsewhere in the world.
That puts Global Helium (HECOF) in the thick of what could soon be a world-class helium reserve.
Moreover, a deep exploratory well was drilled on its property by Imperial Oil back in 1944.
The testing equipment of the day did not – or wasn’t advanced enough – to detect helium.
Global Helium (HECOF) recently acquired the data, and is now running modern seismic testing in the area with a view to drill this structure in 2021 or 2022 depending on weather and road access.
Drilling for helium is nearly identical to the process of drilling for natural gas, an industry which generated massive data on helium.
Unlike in the U.S., the historic data is reliably available within the oil and gas field records of the Canadian prairies.
The environment is ripe for a resurgence of the industry in Saskatchewan, which produced helium from wells for about a decade, 50 years ago before floundering due to slumping prices, said Melinda Yurkowski, assistant chief geologist for the Saskatchewan Geological Survey.
“It’s still a lot of rank exploration right now,” she said, adding “no one knows how much helium — produced by the decay of radioactive uranium and thorium — the province contains.”
The answer to that could come quickly as Global Helium (HECOF) gets to work on aggressively exploring its vast property.
The next phase would be to a small plant that would separate nitrogen from helium, then liquefy the raw helium for shipment to a big purification plant such as the one three hours away in Battle Creek.
That’s why investors might see good news soon, not just because of Global Helium’s fabulous almost 1,250-square mile property, but also because of the company’s veteran leadership.
President and Director Wes Siemens P.Eng., began his career in 1993 at Canadian Occidental Petroleum Ltd. and held several technical and management positions over 21 years throughout its evolution to Wascana, Nexen, and the global behemoth CNOOC Ltd.
Wes Siemens has held International and senior management positions including in Operations, Corporate Planning and Business Development, Business Development Africa and Middle East, Oil Sands and Technical Excellence.
He has accumulated extensive experience in mergers and acquisition that involved billions of dollars of transactions.
Siemens received his Bachelor of Science Degree in Mechanical Engineering from the University of Alberta and completed an Executive Leadership Program at Oxford.
Vice President Duncan MacKenzie, P. Geol. is a geoscientist with 20+ years’ experience with all aspects of finding and commercializing natural and industrial gases.
His expertise is in western Canada. But, he’s also worked as a geoscientist on U.S., South American, and West African projects.
MacKenzie is well versed in gas reserve evaluations and is privileged to be part of a network of skilled and experienced geoscientists focusing on environmentally friendly, non-combustible gases. He has been working on rare gas exploration since 2015.
Chairman and Interim CEO Brad Nichol, P. Eng. MBA, is a mechanical engineer with more than 25 years’ experience in oil field operations, business consulting, and as an oil and gas executive and board member in Canada, the United Kingdom, the United States, and South America.
He has worked extensively on producing oil and gas fields in Canada and Colombia and has participated in identifying or acquiring more than 30 billion cubic feet of natural gas and 4.5 million barrels of oil in North America.
Nichol brings access to an experienced network of engineering, operational and finance professionals in Calgary, Toronto, London, New York and Switzerland.
Veteran natural resource investors know Nichol as the President and CEO of Alpha Lithium Corp (ALLIF), an environmentally responsible lithium explorer and producer that is one of the most actively traded and admired junior explorers in the world.
Along with its experienced finance team, proven management is but one of the…
The news loves a crisis, and sooner than later, it will move on from the pandemic and politics to the next big threat…
Millions of people who can’t get MRIs because of the helium crisis would count as huge news.
So would a helium shortage that causes the electronics sector to crash.
Global Helium Corp. (HECOF) is in the heart of Saskatchewan’s helium belt. It could soon be the Saudi Arabia, or the West Texas of helium.
That’s why now could be the very best time to latch onto its affordably priced shares.
And, that means it may be time to call your broker or advisor and show him or her this report.
Then discuss these new opportunities in helium and, in particular, with Global Helium Corp. (HECOF).
Check carefully because I recognize that young companies with great stories can carry a significant amount of risk… that risk ranges from being under-funded to having a small number of shares available to the public.
All that said, I think you and your financial advisor will end up in agreement, Global Helium Corp. (HECOF) could be 2021’s top headline-making stock.
I’d like to offer you access to Global Helium’s Investor presentation, which you can have at no charge.
I’ll also begin a free subscription for you to our online investor newsletter, InvestingTrends.com.
By signing up above you will receive the InvestingTrends newsletter and 3rd party advertisements. Expect up to 5 messages per week from us. You can unsubscribe at any time at the bottom of any of our emails.
* See our Important Notice and Disclaimer above for a detailed discussion on compensation, risks, atypical results, and more.
James Hyerczyk is a Florida-based technical analyst, market researcher, educator and trader. James began his career in Chicago in 1982 as a futures market analyst for floor traders at the Chicago Board of Trade and the Chicago Mercantile Exchange and numerous brokerage firms, and have been providing quality analysis for professional traders for 38 years.