HeLIX Exploration PLC (AIM:HEX), in its first interim results since its April IPO, has described London as “the pre-eminent market for growth resource companies with a deep pool of investors, talent and a high standard of governance”.
“London remains a world-leading capital market for small-cap companies, and I am delighted to have been a part of bringing Helix Exploration to the London market,” Helix chair David Minchin said in a statement.
“Without the capital provided by our shareholders at the IPO, we would not be able to achieve our strategic aims and focus on early production at the Ingomar project.”
Minchin’s comments come against a backdrop of narrative about the waning appeal of the London Stock Exchange, as several companies have recently chosen alternative listing venues in Europe and North America.
Helix successfully raised £7.5 million of new capital in its April IPO selling new shares at 10p each, though its oversubscribed share offering is understood to have garnered an order book over £22 million.
Since its float, Helix has gone from strength to strength and trades in London at 22p per share – more than double its IPO price.
Investor interest is driven by Helix’s progress and excitement over the Ingomar helium project, where drilling is scheduled in the coming months.
Minchin today noted that drilling at Ingomar is on target to commence in the third quarter, in line with a project schedule that envisages first production by the end of 2025.
The Ingomar Dome project was valued at $303.1 million (NPV) in a scoping study report, in June, with the initial capital requirement of less than $20 million – with the project expected to generate in excess of $600 million after CAPEX, OPEX, tax, and royalty over a 29-year mine life.
The proposition was boosted further this month with the recent acquisition of the Rudyard project, which boasts 480 million cubic feet of contingent resources.
Minchin described the recent addition to the portfolio as “an important opportunity”.
“It is a proven helium discovery with 480 million cubic feet of Contingent Resources that have an in-situ value of >$250m.
“Expanding our helium portfolio is a strategic priority and this acquisition represents an exciting addition that complements our flagship Ingomar Dome Project.
"It is a testament to the Helix team and the deep experience of our CEO Bo Sears that we were able to secure the Rudyard acquisition for a total consideration of only $250,000 and that the majority of this consideration was paid in shares."
Helix is positioned to benefit from the compelling dynamics of the helium market, which continues to see sustained demand growth driven by its critical applications in high technologies such as the medical sector, high-tech manufacturing, defence, rocketry, computing, and aerospace.
Demand for helium is on the rise due to its indispensable role in these sectors, with current supply levels outpaced by demand, necessitating new sources to balance the market.