Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) is moving closer to 'commerciality' following the latest well test and an acquisition that should speed its progress to generating cash.
Panmure Liberum lauded the $6.75 million purchase of a 50% working interest in the Galactica Pegasus Helium Project in Colorado, which could be in production by the middle of next year.
"The deal gives Helium One access to a near-term development which could deliver maiden revenues in 2025 and diversifies the portfolio away from Tanzania thus de-risking the overall portfolio and making the company less reliant on assets there," the broker said in a note to clients.
Production was described as "very encouraging" from the Itumbala-1 well in Tanzania, which flowed at an average 786 barrels per day from the Karoo interval with 5% helium.
Reiterating its 'buy' recommendation, the boutique investment bank said it was rebasing its price target to 3.44p from 5.30p to reflect the Colorado acquisition and issue of stock in a £6.4 million fundraiser backing the deal.
Still, the valuation is more than double the current share price of 1.46p (down 16% on the day).