Helium One Global Share Price Forecast August 2021 – Time to Buy HE1?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of United Kingdom-based Helium One Global (LSE: HE1) have fallen by more than 42.8%, currently trading at £11.60 at the moment (AUG 12 09:29 UTC+1). The shares’ growth indicators have improved dramatically since April and have reached £23.00, £27.10 and £27.00 in May, June and July respectively.
Helium One Global – Technical Analysis
According to the financial statement from Helium One Global, the company’s market cap of £160.337 million with total assets worth £11.714 million. Net income for 2020 was at – £2 million compared to 2019’s -£1 million.
Helium One Global’s moving averages indicate a strong sell action as evident from its Exponential Moving Average (50)(22.57), Simple Moving Average (50)(23.20), Exponential Moving Average (100)(19.50) and Simple Moving Average (100)(19.35). Oscillators like Stochastic RSI Fast (3, 3, 14, 14)(15.03), Williams Percent Range (14) (−90.13), Bull Bear Power(−21.87) and Ultimate Oscillator (7, 14, 28)(32.50) are pointing towards a neutral action.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Helium One Global was founded in September 2015 with the aim of exploring, developing and becoming a producer of high-grade helium which is a critical component in modern technologies. The company holds 100% licensing covering 4512 sq km of land in Tanzania, with exclusive rights to develop the assets. The company currently has three project areas: The Rukwa, Eyasi and Balangida Projects. All these projects have shown signs of helium occurrences and possess the ideal geological conditions for large levels of subterranean gas accumulation for commercial production. The company was initially well-positioned to capitalise on the highly compelling global helium market.
The company has recently completed the drilling of its first well in Tanzania. The project has good reservoir potential with 15 to 20% porosities. The results of the project were not what investors were hoping for. Bad hole conditions prevented the main reservoir from being logged. The company commenced its maiden drilling project on June 12th before encountering a helium deposit on June 19th.
Helium One Global has previously raised £10 million in April for funding its project in Tanzania. The project didn’t produce the desired results as deteriorating well conditions prevented it from analysing deeper target formations. As the update was devastating for the prospects of the company, it is understandable why the share price crashed. The setback will cost the company significant time and money even though management remains optimistic about the situation.
Should You Buy HE1 Shares?
While many analysts had reviewed the company and labelled it an extremely speculative investment, all of it has changed following the company’s drilling update. Preparing prospects for any commodity is always hit and miss as investors do not know what happening till production starts. Helium One had already a lot of positive news built into its share which seems to be the major reason why the share prices decreased so sharply.
Investors can rest assured that this isn’t the end of the company but rather a small setback. Management can identify further prospects by using the information from this exploration. The company seems to be heading in the right direction as it has already identified some helium in the ground at the site. Whether the company will ever discover a significant and recoverable helium resource is a matter of debate. This does not give an investor enough reason to be interested in HE1 share prices now. Investors who already own the shares may consider selling them today.
Buy Helium One Global Shares at CedarFX, the World’s #1 trading platform!
