At only 0.6p per share, it’s trading for less than a penny. And for investors with a strong stomach, the bull case is quite compelling.

What does Helium One actually do?

The company is a primary helium explorer, with its flagship asset the Southern Rukwa project in Tanzania – one of the most helium-rich geological formations ever identified.

Why does that matter? Well, helium isn’t just for party balloons. It’s a critical industrial gas used in semiconductor manufacturing, MRI machines, particle accelerators, and fibre optics. More crucially, these sectors are growing rapidly and have almost no substitutes for the helium they need.

In fact, earlier this year, Helium One completed a major pumping test at its Itumbula West-1 well, achieving helium concentrations averaging 5.4%, with peak readings hitting 9.2%. For context, a helium concentration above 0.3% is generally considered commercially viable, making these figures exceptionally high by industry standards.

As chairman James Smith noted following the test results:

“The testing delivered consistent and reliable operational performance, with ESP flow rates exceeding expectations and sustained helium concentrations in line with anticipated ranges.”

The company’s now seeking an industrial partner to help fund the next phase of development, which is a significant vote of confidence in the project’s viability. And beyond Tanzania, Helium One also holds a 50% working interest in the Galactica-Pegasus helium development project in Colorado, adding further optionality to the investment case.

Is the opportunity as cheap as it looks?

Here’s where things get tricky. Despite the sub-penny share price, this stock is far from risk-free, and ‘cheap’ is relative.

Helium One has yet to generate any meaningful revenue, and the path to commercial production is long and expensive. The company is actively seeking external funding and a farmout partner, which means shareholders face real dilution risk.

More critically, the enormous resource estimates are based on geological surveys and well tests, not confirmed production. If future drilling results disappoint or partner negotiations stall, the share price could fall sharply from here, potentially even collapsing to zero.

But is this a risk worth taking?

The bottom line

Personally, it’s still too early in Helium One’s journey to add any shares to my personal portfolio. But there’s no denying the obvious appeal.

For adventurous investors who understand that this is a high-risk/high-reward bet, Helium One presents a genuinely credible opportunity. The underlying commodity’s in high-and-rising demand, the geological evidence is encouraging, and the share price leaves plenty of room for explosive upside if the projects deliver.

The key question is whether management can secure the funding and partnerships needed to turn this potential into reality. And that’s exactly why I’ll be watching closely.

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Its most recent press release confirmed that the facility was “transitioning to continuous 24/7 operations following completion of automation and system upgrades”. It also revealed that the group’s first helium sales had been agreed.

This is an important milestone. The group’s now moved from being an explorer to a producer. And with helium prices high at the moment, its timing has been impeccable. Demand continues to rise due to the unique cooling properties of the gas.

Bigger and better?

However, its US operation is relatively small. Helium One’s joint venture partner, Blue Star Helium, which is listed on the Australian stock market, is valued at £23m.

However, the British company’s market-cap is £62m. This means investors are currently (2 May) placing a value of £39m on its other project, the Southern Rukwa mine in Tanzania.

Here, in February, it was confirmed that electrical submersible pump testing had been successfully completed. Flow rates exceeded expectations and helium concentrations were in line with previous estimates. The next stage in the development process is “to progress discussions with potential industry partners and seek external investment to advance the project towards development”.

Off the back of this good news, the company raised more money from both institutional and private investors in March. Since then, things have gone quiet. It’s sometimes said that no news is good news, but in the world of investing a void’s often filled with speculation.

Indeed, I’ve seen some online comments suggesting that the group’s licences could be terminated. This gloomy prediction is based on reports that the Tanzanian government has revoked 40 in the country principally due to a lack of development. Other reasons for the cancellations include a failure to pay the required fees. Non-compliance with corporate and social responsibility obligations has also been mentioned.

This seems very wide of the mark to me. The testing phase continues at pace and with a 17% stake in the Southern Rukwa project, the government has a vested interest in the mine’s full potential being realised.

What next?

I suspect shareholders will be hoping that the next announcement will be that the group’s found a suitable partner to help commercialise its project in Africa. To me, this is pivotal to the investment case. At this point, everything should become clearer.

Investors will know the terms of any partnership including the amount of equity required. And given that any funding arrangement is probably going to include some debt, shareholders will be able to judge how much of a burden this will be. Finally, a likely timescale for bringing the first helium to the surface in Tanzania is likely to be made clearer.

Because I have no clarity on these issues, I don’t want to invest. It would be too speculative for me at this stage. However, when a partner’s found, I’ll come back and revisit the position. Until then, I’ll be watching with interest.

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And there are quite a few impressive examples of such explosive gains being unlocked:

• Melrose Industries has surged from around 30p in 2003 to 567p today – a 1,790% return.
• Judges Scientific has skyrocketed from around 64p in 2009 to 4,410p today – a 6,791% return.
• In 30 years, Diploma has jumped from roughly 82p to 6,910p – an 8,327% return.

A simple £1,000 investment at the start of these journeys would be worth over £10,000 today. And in the case of Diploma, the figure’s much closer to £84,269!

But the question now becomes, which penny stocks in 2026 could be the next major winner?

An emerging 10x opportunity?

In 2026, there’s a long list of promising UK micro-cap stocks to choose from. And among these, perhaps one of the most compelling is Helium One Global (LSE:HE1).

This is a helium exploration business with two active projects:

• It’s flagship Southern Rukwa project in Tanzania covering a vast 1,900 square kilometre area of the Rukwa Rift Basin (100% owned).
• A recently-acquired 50% working interest in the Galactica-Pegasus project in Colorado, US, currently being operated by Blue Star Helium.

While Galactica-Pegasus has started extracting helium, its group’s Rukwa project that could be transformational. Rukwa is estimated to contain up to 138 billion cubic feet of the inert gas. And at current market rates, such an enormous reserve could yield anywhere between $69bn to $166bn in revenue over its lifetime.

Compare that against Helium One Global’s £62.7m market-cap, early investors could be on track to earn a 10x return, even if material resource estimates are significantly reduced later down the line.

So should penny stock investors rush to buy shares today?

Understanding the risk

The prospect of Helium One potentially sitting on a genuinely world-class helium reserve is undeniably exciting. Even more so, given that the gas is a critical and non-substitutional input material for semiconductor manufacturing, quantum computing, and space technology.

However, it’s essential to recognise that we’re still in the very early days of this project.

The enormous mineral resource estimate has yet to be confirmed by drilling tests. And while the company has secured mining licenses from Tanzanian regulators, mining infrastructure, processing plants, off-take agreements, and commercial production remain on the to-do list – a process that will take years and vast sums of money to complete.

Is a 1,000%+ return realistic?

The catalysts for a 10x return are real and progressing. But exploration companies fail far more often than they succeed. That includes those with promising reserves simply due to running out of funding.

The near-term revenue from its Galactica-Pegasus project will help on that front. But it isn’t going to be enough. And Helium One will still need to secure external financing, potentially heavily diluting early investors.

That’s why, despite its explosive potential, I haven’t bought any shares. But for investors looking for a lottery-like penny stock, comfortable with the risk of a total loss, I feel Helium One Global looks like one of the most credible opportunities to consider compared to other penny stocks in the UK.

The post How to try and turn £1,000 into £10,000+ with penny stocks appeared first on The Twelfth Magpie.

Sounds too good to be true? Let’s see.

Risk versus reward

There are some great examples of penny stocks delivering huge returns. But there are also plenty of dismal failures.

Although devastating to those who have lost their jobs, as well as investors and shareholders, we shouldn’t be put off by these flops. Personally, I think it’s important to encourage entrepreneurship and risk-taking. Otherwise, economies are likely to stagnate.

That’s why I appreciate what Helium One, the AIM-listed gas explorer, is trying to do.

However, investing in the business is, undoubtedly, risky. Why do I say that? Well, it’s yet to generate any revenue and its primary asset, the Southern Rukwa helium project in Tanzania, is a long way from being commercialised.

Despite this, one broker has set a price target for the stock of 3.6p, valuing the company at over £370m.

Clearly, this is based on future potential rather than what’s happening at the moment. Having said that, the group’s on the verge of selling the first helium from its other project in Colorado. If all goes to plan, carbon dioxide sales will then follow.

The US Galactica-Pegasus project is a 50:50 joint venture, which means the operational risk is shared with another party. However, it’s fairly small and doesn’t have the same potential as Helium One’s mine in Africa. For example, its Australian partner for the Colorado operation, Blue Star Helium, has a market cap of only £15m.

Rising prices

But now appears to be a good time to be in the helium business. Global supply is tightening with demand rising sharply. Last month’s attack on the Ras Laffan facility in Qatar removed a third of the world’s supply in a single morning. This is pushing prices higher.

Critically, the gas has unique cooling properties, which make it essential for certain medical and space exploration applications. It also has uses in the semiconductor and quantum computing industries.

The helium under the ground in Tanzania is, therefore, increasing in value. In June 2025, an independent firm of experts estimated that there’s 1.345bn standard cubic feet (scf) of “proved, possible, and probable” helium at the site. For context, global demand is currently estimated to be 6bn scf.

A more conservative estimate — described as “most likely” in the world of mining — is 296m scf.

What do I think?

If it can continue to raise the necessary cash to fund its exploration activities, find a partner to help ease the financial burden, successfully extract the helium unusually contained within water aquifers, bring the helium to the mine’s surface at the anticipated flow rates, secure customers in the right locations, and overcome the logistical and financial challenges of transporting the gas off the African continent, then I think Helium One will be worth — at least — £370m.

However, these are big obstacles to overcome, which makes an investment at this stage too risky for me. Personally, I think there are better opportunities to consider elsewhere in the mining sector and beyond. However, in the spirit of entrepreneurship and taking risks, I wish the company well.

The post This penny share is 463% undervalued according to 1 analyst! appeared first on The Twelfth Magpie.

But the helium exploration company has just reached a critical milestone that could transform the stock in millionaire-maker for investors brave enough to buy today.

The importance of helium

Beyond inflating party balloons, helium plays a pivotal role in semiconductor manufacturing, fibre optic cabling, quantum computing, and aerospace & defence systems.

So it isn’t surprising that the gas is classified as a critical mineral by both the UK and US governments. And with Qatar’s Ras Laffan facility shut down in the wake of the Iran war, around a third of global helium gas supply has just been cut off, spiking prices.

In this supply vacuum sits Helium One Global. It holds a 100% ownership over the Southern Rukwa Basin in Tanzania, which is estimated to contain up to 138 billion cubic feet of the critical gas.

What does that mean in terms of money? At current prices, that’s enough to fetch between roughly $69bn (£52bn) and $166bn (£125bn).

Compare that to Helium One Global’s current market-cap of £60m, and the stage is set for some millionaire-making returns.

Digging deeper

It’s taken several years, but in February 2026, pump testing confirmed a consistent subsurface fluid flow at its Itumbula West-1 site of the Rukwa project.

This is where things get a little complicated. Flow rates are measured in barrels of water. During the 20-day testing period, water flow rates averaged 15,000 barrels per day with a Gas Water Ratio (GWR) of 0.05 standard cubic meters. In other words, for every cubic meter of water extracted, a total of 0.05 cubic meters of gas was recovered. And of that gas, 5.4% of it was helium.

For anyone crunching the numbers, that means the actual volume of helium recovered was pretty tiny. But it’s not the gas volume that matters here. Instead, it’s the fact that flow rates were six times higher than a year ago and helium concentration was consistent, serving as strong evidence for the presence of a larger connected helium reservoir system.

That’s exactly what the company needed to kick-start formal partnership discussions with industrial gas giants. And it brings the business yet another important step towards commercial production.

Taking a step back

It’s critical to recognise there’s still a long road ahead. Even if everything goes smoothly, full-scale commercial production likely won’t kick off until the early 2030s.

In the meantime, the business remains a loss-making enterprise with a long list of expenses to cover. That means equity dilution is almost a certainty. And the risk is only amplified given that Tanzania is a frontier jurisdiction with an unstable regulatory environment.

So where does that leave investors? Helium One Global’s a classic case of a high-risk, high-reward penny stock. For adventurous investors seeking exposure to the helium market, considering a small position in a well-diversified portfolio could eventually prove lucrative. But for investors who don’t have the stomach for extreme volatility, Helium One is likely a bad fit.

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But repeatedly asking shareholders for more money is inevitable if a company isn’t generating any revenue. How else can it pay the bills? Risk-averse banks are generally reluctant to lend in these circumstances. However, things could soon change.

Good news

The group has a 50% interest in the Galactica-Pegasus project in Colorado, which is about to become fully operational. Here, the price for the first helium has been agreed and the project’s transitioning to a 24/7 operation. Carbon dioxide sales will soon follow.

As distasteful as this might sound, reaching this milestone has been perfectly timed. The bombing of the Ras Laffan gas facility in Qatar — and transport disruption following the effective closure of the Strait of Hormuz — have driven helium prices higher.

Taking advantage

To capitalise on progress in America, new cash of £5m has been raised from a share offer to institutional and private investors. The retail offer was over-subscribed so the company decided to take the opportunity to raise £500,000 more than was originally planned. However, disappointingly for existing shareholders, the shares were issued at a 17.6% discount to the prevailing market price.

In some respects, the directors can pat themselves on the back for getting this far. Gas exploration is time-consuming, technically challenging, and expensive. Yet, since the group’s IPO in December 2020, its market-cap’s risen by around £43m.

However, it’s come at a cost to shareholders who haven’t participated in the numerous fundraising rounds that have seen the group issue nearly 10bn more shares. Someone who invested £1,000 at the time of listing would now see their stake valued at just over £200.

Thousands of miles away

But Galactica-Pegasus is relatively small. A much bigger opportunity lies deep underground in Tanzania. To transform the company’s value, it has to demonstrate that it’s able to extract the helium from water aquifers, transport it cheaply off the African continent, and find some customers.

The latter shouldn’t be too difficult given the unique cooling properties of the gas. Even before the conflict started in the Gulf, there was a worldwide shortage, which kept prices at historically high levels.

And If the group’s able to overcome these challenges, the value of the group could soar. Panmure Liberum has set a price target of 3.6p for the group’s stock. The broker says the “world-class discovery” in Tanzania, along with what’s happening in the US, means the stock’s significantly undervalued.

Next steps

But the trouble is it’s going to cost a lot of money to commercialise the Southern Rukwa project in Africa. Initial estimates have been put at $100m. However, nobody really knows for sure. The company’s seeking a strategic partner to help share the burden but, in my opinion, further dilution for shareholders looks certain.

That’s why the stock’s too risky for me. On balance, I think there’s a better chance of making decent money from a miner already producing.

The post What on earth’s going on with the Helium One share price? appeared first on The Twelfth Magpie.

Another thing is that it’s an incredibly volatile penny stock. Depending on which September someone invested in, they could either be up 123% (from 2025) or down 93% (from September 2021).

In theory then, I could make a lot of money if Helium One ever reached its previous highs above 25p.

Finally, this gas exploration firm is hoping to start generating revenue from helium projects. And demand for helium is expected to remain high for years to come due to its use in semiconductor manufacturing, space technology, and quantum computing.

So, should I load up on this penny stock?

Exciting times

The explorer has two projects it’s hoping to extract helium from. In south-west Tanzania, its flagship southern Rukwa Helium Project received a mining licence last year. The site boasts strong sustained helium concentrations of 5.4%, peaking at 9.2% at surface.

Helium One also owns a 50% working interest in the Galactica development project in Colorado, USA. Operated by Australia’s Blue Star Helium, this project is much closer to production.

Indeed, in its interim results published on Thursday (26 March), Helium One said stage one of the Galactica development was completed. Six wells are now connected to the processing facility, and it’s moving swiftly toward 24/7 operations.

Even better, the project secured its first-ever helium sales agreement at spot pricing. This is a huge milestone because it moves Helium One closer from being a promising explorer to a revenue-generating producer.

Negotiations are progressing with multiple parties for long-term helium and CO₂ supply contracts…These early operational steps represent the beginning of a new chapter for Helium One, one in which we expect to generate our first revenues and establish a commercial presence in the global helium market.
Helium One.

Exciting times. So, why did the penny stock crash 14% on the news?

Extreme share dilution

Well, there’s the thorny issue of how to fund the extraction of the gas. And, alongside the report, Helium One announced it has raised £3.5m through an institutional placing, with an additional £1m retail offer currently open.

The problem was that the shares were priced at a discounted 0.6p, and the share price dropped to reflect that.

So, as well as the usual challenges associated with mining projects (cost overruns, delays, and political risks), there’s every chance significantly more cash will need to be raised in future. And this might result in an even lower share price. 

To get a sense of the dilution here, the number of shares has increased by over 2,400% in just five years! Yikes.

Worth a punt?

As mentioned, helium is in high demand and likely to stay that way. To give just one example, huge amounts of the gas are needed to cool quantum computing systems to near-absolute zero temperatures.

Were Helium One to get the US project up and flowing, and find a larger partner to shoulder the cost burden in Tanzania, the stock could seriously take off. Therefore, extremely adventurous investors might want to consider taking a punt.

But speaking personally, this penny stock is too dicey for my own portfolio.

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The share price of Helium One Global (LSE:HE1), the AIM-listed gas development company, is on fire at the moment. Six months ago, the company’s stock was changing hands for 0.34p. Today (6 March), one share is selling for approximately 0.63p. This increase of 85% dwarfs the return of the FTSE AIM All-Share index. Over the same period, it’s returned 2.5%.

Then and now

However, as is typical of penny shares, it hasn’t always been like this. Indeed, when the company listed in December 2020, its share price was 2.84p. Back then, £1,000 would have bought 35,211 shares in the group. Today, it would stretch to 158,730 of them.

With the group having to repeatedly ask shareholders for more money, the number of shares in issue has increased by nearly 9bn. However, Helium One’s stock market valuation of £58.6m is over four times higher than at the time of its IPO.

What’s going on?

Despite this history of dilution, investors appear excited at the moment. The current share price momentum seems to be driven by expectations that the group’s 50:50 joint venture helium project in the US will soon start generating revenue.

The company’s most recent (5 March) update on Galactica-Pegasus says that a “significant commercial milestone” has been reached with “the plant currently filling a tube trailer with refined helium gas for sale under established spot-market arrangements”.

This is a positive development. But it’s unlikely to dramatically change the fortunes of the group. Blue Star Helium, the group’s partner in Colorado, is listed on the Australian stock market. It’s current market cap is just under £7m.

Bigger and better?

However, Helium One has another project on the go, in Tanzania. The Southern Rukwa project is – potentially — much bigger. However, there are numerous obstacles that must be overcome before it’s in a position to start generating revenue.

For a start, the gas is held within water aquifers. And it’s located thousands of miles away from potential customers. More immediately, the group’s going to have to raise further cash — $100m has been suggested – before it’s in a position to flow helium to the earth’s surface on a large scale.

Partnerships with larger companies, offtake agreements with customers, and debt finance have all been floated as possible means of securing the necessary funds. But whatever agreement is secured, I suspect more shares will have to be issued.

Undoubtedly, there’s a big market for helium. Its cooling properties are essential for medical and space exploration applications. And prices are likely to rise further with demand outstripping supply.

However, it will be a while yet before Helium One has to start worrying about finding customers for its African gas. I’m too old to wait for this. I wish the company well and hope it’s successful but there’s too much uncertainty around the viability of its project in Tanzania. In my opinion, there are many less risky opportunities to consider elsewhere.  

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No change

When the group listed at the end of 2020, it had already been in existence for over five years. At the time of its IPO, it said it had been set up to “actively pursue the exploration, commercial development and monetisation of a discovery-ready, non-hydrocarbon associated helium rich gas composition within the Tanzanian Rift Valley in East Africa”.

Well, it’s still doing that. The group’s signed an exclusivity agreement with the country’s government which, in return, now has a 17% stake in the Southern Rukwa project.  

The shares were listed at 2.84p, which means anyone investing £15,000 at the time would have been able to buy 528,169 of them. The group was valued at £14.1m.

Today (4 March), the group’s market-cap is just over £50m and its shares are changing hands for 0.58p. As a result, an initial investment of £15,000 would now be worth only £3,063. Ouch!

Since listing, the company’s repeatedly had to raise money. As a result, it’s issued another 5.72bn shares, which has diluted the shareholdings of early-stage investors. Some of the fund-raising has been restricted to institutional investors only so not everyone’s been able to participate, even if they wanted to.

But the need for additional cash shouldn’t have come as a surprise to anyone. At the time of listing, the company said it will “likely require additional financing in order to carry out its gas and associated liquids exploration and development activities”.

Without any assets generating money, it’s typical of pre-revenue companies. And unavoidable.

More of the same

Yet the company’s going to need more cash if it’s to start producing gas in Tanzania. Initial estimates are around $100m. The company’s in talks with potential backers but further shareholder dilution looks inevitable to me.

Since its IPO, the group’s acquired a 50% interest in another helium project in Colorado. Production should commence soon, although it’s a relatively small operation.

Helium has many unusual characteristics, which is pushing demand higher. It has the lowest boiling point of any gas, which makes it particularly valuable in the health and space exploration industries. If the group can get large volumes out of the ground then shareholders are likely to be well rewarded.

However, the gas in Tanzania is found in water aquifers, which Helium One’s described as a “unique play”. Transporting helium from East Africa to the world’s markets is also going to be logistically challenging. The continent also has a reputation for economic and political instability, which could prove to be a problem.

Personally, I’d rather invest in a mining company that’s already overcome these obstacles. Fortunately, there are plenty to choose from and — with the price of precious metals soaring over the past couple of years — many are doing very well.

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Helium One Global (LSE: HE1) is one of those stocks. It’s already up 29% this year after the budding gas ‘startup’ announced significant progress at its Southern Rukwa facility in Tanzania.

So what’s driving the growth — and will it continue?

Notable developments

Helium One’s main well, Itumbula West‑1, produces helium at concentrations over 5% — many thousands of times above normal background levels in the air. In February, it announced the successful completion of pump testing at the site, bringing in the equivalent of 16,400 barrels a day.

This is a huge step that’s taken years to come to fruition, allowing the company to progress dicsussions with potential industry partners.

It also recently purchased a 50% stake in the Galactica‑Pegasus project in Colorado, USA. This well’s much closer to production and could bring in early cash from both helium and carbon dioxide sales if drilling goes to plan.

Why helium?

Helium may not carry the same weight as LPG gas but it’s still a big deal. Think of things like MRI scanners, microchips, and space tech — they all need helium. These high-tech-use cases provide long-term visibility in terms of demand, helping ensure revenues remain strong.

If Helium One can turn its Tanzanian discovery into a producing field and Colorado gets up and running, it’ll be selling into a market with strong and consistent demand.

Financials

For now, Helium One remains unprofitable, spending all its funding on drilling and testing. In 2025, it reported a pre‑tax loss of £4.25m – although this was up from a loss of £6.9m in 2024. 

Net assets rose to roughly £39.3m thanks to heavy spending on drilling and exploration, with around £6.13m in financing cash at year‑end.

Encouragingly, it holds almost no debt, with a very comfortable quick ratio of 6.19. However, on several occasions it has raised funds through share dilution, suggesting difficulty in securing financing.

Not for the faint-hearted

Like most penny stocks, Helium One has experienced notable volatility, often driven by share issuance. It also faces the usual risks that come along with exploration and development companies. There’s no guarantee yet that any of its projects will deliver on time, on budget, or at all. Wells can disappoint, costs can blow out, and technical issues can delay production.

And with no steady income yet, it depends on financing to continue — or further share issuance, which hurts the share price. 

These are all fairly common risks that come with most penny stocks. But as they say: ‘no risk, no reward’.

The bottom line

For UK investors, Helium One sits firmly in the ‘high-risk/high-reward category. There’s no dividend, it lacks stable earnings, and any small hiccup could derail future profits.

But if you’re comfortable with the risk and can accept the chance of losing money, the pay off could be spectacular.

On the face of things, it appears to be a well-run company operating in a high-demand, niche sector. That alone gives it lots of potential.

As such, I think it’s worth considering but only as a small allocation in a much larger, adequately-diversified portfolio.

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