Helium One Is Worth Buying

Helium One Is Worth Buying by Adam Rosen last updated on March 14, 2025

Helium One: Is It A Worthy Penny Stock?

Helium One (HE1) is a prominent penny stock that's stuck in a tug-of-war between bulls and bears. The Helium One company is currently waiting for mining approval in Tanzania. Meanwhile, the share price of Helium One appears to be treading water.

Everyone is of the view that Helium One needs government approval to get the most out of its Rukwa mine. Once the approval is obtained, the company will get one step closer to securing funding.

Helium One Faces Delays After Delays

In the meanwhile, everyone is now looking at the company's working interest (50%) in its development project called Galactica-Pegasus. The project's operations are controlled by Blue Star Helium which is an Australian company.

few months back, the drilling process was delayed due to bad weather. Later, the company announced that everything was now set up and the work would commence.

After that, the company faced yet another delay due to the weather. At that time, the company decided to gravel the roads.

Now, the latest update is that the drilling at the site will start shortly. If everything goes well, the company will manage to extract Helium during the 1H2025.

If we look at the demand side, it is at an all times high as Helium gas can't be manufactured. So, that's the key factor that is driving its price higher.

On top of that, there is no spot market for Helium gas, and the price is decided on a contract basis. According to experts, the Helium gas is x100 times more valuable than the natural gas.

But, we also need to understand that mining is a difficult operation in rural Africa. The nearest town from the Rukwa is 80 miles.

So, unless Helium One manages to get a mining license and secure the required funding, the stock will remain a risky investment.