Helium One Global Ltd (HE1) Is now the time to buy shares?

Helium One (HE1) has undoubtedly huge potential. However, there are major questions surrounding HE1’s ability to execute its plan and live off to its potential.

The company had zero debt and cash worth $16mil in June 2021

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Their cash burn (the annual rate at which an unprofitable company spends cash to fund its growth) was $7.1mil in the last year, a 376% increase compared to the previous year.

The estimated cash runway is about 2.2 years from June 2021, which sounds reasonable considering that the company is planning to start drilling in Q3 2022.

HE1 has not updated their progress since 14 March 2022

They stated that Helium One is in advanced discussions with a global drilling company.

Minchin also said they are confident in securing a suitable rig for their drilling campaign in 2022.

The share price could rise with news of a secured rig, and successful drilling could generate a fortune for patient investors.

One of the current challenges is a shortage in the supply of rigs

If HE1 does not secure a rig anytime soon, it could delay its operations next year 2023 and lose a lot of its cash.

HE1 remains in the negotiations process. Additionally, they have more rig options, and some of their Engineers travel to perform a drilling test.

David Minchin said that their team identified multiple areas at the Lake Bed and Karoo Group levels that HE1 added to their prospect portfolio.

Later in March, Helium One’s CEO, David Minchin, appeared on the podcast “Breakfast Business with Joe Lynam”, where he explained their plans to purchase a rig and begin drilling in Q3 of 2022.

Even though we have this information from the company’s CEO, we have to wonder why this information was not presented to us formally in the form of Regulatory News Service (RNS).

The company’s situation is uncertain as the price of this penny stock is falling due to their RNS stating positive results in more data and analysis.

But what matters is whether they start drilling or confirming a suitable rig.

Additionally, OTC investors experienced issues with trade twice this year.

This problem made some investors reconsider their current stock position in HE1.

We will have to wait and see if Helium One can secure a suitable rig and start their drilling plan.

The common opinion is that the size of the project is likely to be too big for them to manage rather than their incompetence in delivering promised results.

Even though the HE1 share price is stagnating and the company is silent, I still believe it is worth holding your position in HE1, because the positive news could see the price soar up of this penny stock.

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