Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has "transformational resource potential" on its hands with the Itumbala West-1 drilling campaign, according to Liberum analysts.
Liberum stated that Helium One’s current share price “does not fully reflect the commercial potential of Itumbula in particular”, with analysts highlighting high concentrations (4.7%) of helium as a potential "world-class" discovery.
Liberum's report emphasised the global helium supply and demand dynamic, noting the critical nature of the balance and its implications for Helium One.
With the Rukwa Basin's risk significantly de-risked through these efforts, the company's stock is undervalued, especially considering the high helium concentration which surpasses global averages for helium prospects.
Key to Liberum's bullish stance is the anticipation of further drilling at Tai-3 and an Extended Well Test (EWT) at Itumbula, which could reveal commercial volumes of helium and solidify a route to market for Helium One.
The company's ownership of its drilling rig was also highlighted as a factor that could provide commercial flexibility and a lower-cost development path.
Helium One is a buy with a 5.3p price target, reckons Liberum.