A longer offtake deal on its Colorado project has done little to lift sentiment, with the stock still languishing far below its 52-week high.
Helium One Global (AIM: HE1) has extended the offtake agreement covering helium production at its Galactica project in Colorado through to 31 March 2027, but the news has failed to arrest a slide that has left shares trading around 50% below their 52-week high.
The extension, agreed with an unnamed US corporate counterparty, pushes out an arrangement that had been due to lapse at the end of August. Pricing under the new term is fixed and set to reflect prevailing US helium market conditions, while the deal continues to cover all helium output from the project's Pinon Canyon plant.
Helium One holds a 50% interest in Galactica alongside operator Blue Star Helium, which is continuing separate talks aimed at securing a longer-term offtake arrangement beyond the extended deadline. Operationally, the project notched further progress with a fourth helium tube trailer despatched from the plant and a fifth now being filled, evidence that production and logistics are ticking along.
Despite this steady flow of operational updates through the year, investors have not been rewarded, with the shares having drifted persistently lower and now sitting roughly half the level of their 52-week peak.
Attention now turns to whether Blue Star Helium can convert ongoing negotiations into a durable long-term offtake structure before the newly extended agreement runs out in the first quarter of 2027, a milestone likely to be closely watched by AIM investors looking for a catalyst to reverse the recent de-rating.
This report is based on Helium One Global’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: American Public Power Association on Unsplash.
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