Helium One’s share price (LON:HE1) has dropped in recent weeks in the face of persistent selling, and delays at Colorado joint venture.
Helium One Global is in the business of exploring and prospecting for helium.
There is often a supply shortage in the global helium market, so on the face of it, the company’s share price should be doing well.
Not least because demand for Helium is expected to double by 2035, with much of that additional demand being created by Silicon Chip manufacturers.
Founded in 2015, the company operates across two continents, with flagship projects in Tanzania, and a joint venture in Colorado, USA.
Its primary focus is on developing large-scale, high-grade helium reserves while maintaining a low-carbon footprint.
Following the announcement of its Tanzanian helium discovery, in late 2024, its shares surged as investors reacted positively to this breakthrough.
However, Helium One’s shares have recently experienced price volatility, with the stock trading down from a near-term high of 11.0p posted in early November.
And while the price has tried to rally, on an almost daily basis. It has met plenty of resistance at prices like 9.80p, 9.40p and 9.0p.
That suggests that there are significant and persistent sellers at these kinds of levels, who are prepared to take down in price to complete their orders.
There has been plenty of volume too, and since the 6th of January, it hasn’t traded less than 20.0 million shares a day and has often done considerably more, turning over 50.0 million shares on January 27th, for example.
That spike in volume came just ahead of a drilling update about the co-owned Galactica project, in Colorado.
The gist of which was that extreme winter weather had delayed work at the site and that the operators, blue-star, had had to gravel the roads to the site to ensure access and had decided to delay moving a drilling rig into place, until the 10th of February at the earliest.
The next move is the share price may well depend on the weather in Colorado and whether or not the drilling rig can be moved on-site and made operational.
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