We are right now in the early stages of a red-hot bull market for one often-overlooked natural resource.
It’s an essential commodity – one that is currently worth about 100 times more than natural gas.
Soaring demand for this commodity – at a time when we’re facing a critical shortage – has created an explosive growth opportunity for those investors who know where to look.
This opportunity is in helium.
Yes...helium is now about 100 times more valuable than natural gas.
A resource that has for decades been thought of only as part of a child’s birthday balloon is actually one of the world’s most critical – and irreplaceable – commodities.
And right now we’re on the verge of a critical shortage.
Making matters worse is that, thanks to a combination of factors, there have been virtually no companies exploring for new sources of helium until very recently.
This opportunity is so potentially lucrative that an expert collaboration of natural resource veterans has come together to develop projects with extraordinary potential.
The company is Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF), a little-known Canadian company that now appears primed for rapid growth.
This Team Led Development on One of North America’s Largest Oil & Gas Discoveries...and Now They’re Seeking to Do It Again – With Helium
There’s a dire need for new, North American helium supplies to be brought online as quickly as possible.
For decades, the U.S. was the world’s largest producer of helium, accounting for as much as 40% of the worlds’ supply.
The world’s single largest source of helium for the past 70 years has been the U.S. Federal Helium Reserve (FHR) in Amarillo, Texas.
But within the past few years, the FHR stockpile has been depleted, and the helium market has opened up to the private sector for the very first time in modern history.
And with helium seeing such a tremendous surge in demand – thanks to its use in semiconductors as well as a host of other critical industries – a significant supply gap is emerging for this essential resource.
This is precisely the opportunity that helped bring together an All-Star collection of natural resource industry veterans with Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF).
It’s a team that was (while formerly at Encana) involved in the early stages of the discovery of the Montney Formation, one of the premier natural gas formations in North America.
Without question, the Avanti Energy team is the most experienced – and most decorated – in the helium space, with direct experience in developing multi-billion dollar projects from their time at Encana.
And that’s what this team is working to do again at Avanti Energy...with drilling set to commence on an initial three wells in what could ultimately prove to be a significant helium project in Montana.
Avanti CEO Chris Bakker has over two decades of experience in oil and gas, most recently working as a commercial negotiator with Encana (now Ovintiv) for major facilities and pipelines in the Montney gas play.
His expertise includes all facets of Natural Gas Exploration like land acquisition, exploration, drilling, well production and facility integration and construction.
Vice President of Subsurface Genga Nadaraju has over two decades of experience in the oil & gas industry…Director of Geoscience Dr. Jim Wood has over 30 years of experience as a geologist specializing in reservoir characterization…VP of Engineering Ali Esmail has spent the past 13 years specializing in reservoir engineering …and Senior Geophysicist Richard Balon has over 30 years of experience in the Western Canadian Sedimentary Basin.
This is an experienced team with an impressive track record of success in the oil and gas industry.
And now they appear poised to do it again.
Avanti Energy Could Be Sitting On As Much As $1 Billion Worth of Helium – or More – in the Greater Knappen Area
This very same successful team is now using the same methodology at Avanti Energy to explore for what it hopes will prove to be some of the richest helium deposits in the world.
The company’s strategy to date has been to pull in on only the very best properties in western Canada and the United States.
This search for “the best of the best” led Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) to the Greater Knappen area of Alberta and Northern Montana.
The company has a 100% ownership stake in approximately 69,000 acres of helium prospective land in this mineral-rich region.
Just recently, the company announced that it had completed its geological interpretation of this property, discovering an estimated undiscovered and unrisked resource potential of:
* Low case: 1.4 bcf of Helium
* Mid case: 4.4 bcf of Helium
* High case: 8.9 bcf of Helium
Based on these estimates, it’s possible that Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) could be sitting on as much as $1 billion worth of helium.
And they’re already moving forward with an aggressive schedule to bring production online as early as Q3 of 2022.
In fact, the first well in Montana is expected to be spud in early December with well results ready sometime early in the New Year.
And on November 9, the company announced that it has contracted with T&S Drilling for its initial three well drilling program at its Greater Knappen land holdings in Northern Montana.
The initial drilling program is scheduled to spud in early December and will target three separate pay zones, two in the Beaverhill Lake formation and one in the Basal Sandstone formation. The drilling targets exhibit structural highs with relief of 70m to >200m. Previously drilled wells surrounding Avanti's lands have high helium shows in multiple Devonian and Cambrian targets with helium percentages of up to 2% and nitrogen percentages of up to 96%.
Analysts at Beacon Securities report that, “Our expectation of 3 exploratory wells in Q4/21 and initial helium production in Q3/22 remains unchanged...we continue to have high expectations for the Greater Knappen area. The initial drilling program in Montana and Alberta will just be the start of a multi-year exploration and development program for AVN. We maintain our $3.80 target price and our Spec Buy rating.”
This potential helium production – as early as Q3 2022 – is happening for Avanti Energy in the midst of soaring demand thanks to helium’s many impactful uses.
Why Helium is Seeing Such a “Rocket Launch” of Demand
As a noble gas helium is not combustible and has properties that make it irreplaceable for a number of important industrial applications.
Helium is the second most abundant element in the universe but it is extremely rare on earth.
With the global helium shortage we are now facing, it’s estimated that the supply will not keep up with demand for the next 20 years.
And that is happening as industry demand is projected to increase at a compound annual growth rate of 11% each year through 2037.
While helium is most commonly thought of as being used for the inflation of balloons, the truth is helium is used in a number of critical parts of daily life.
* Medical Industry – Helium is used to operate MRI machines and as part of respiratory treatments.
* Cryogenics – Helium is the only element that can come close to reaching absolute zero.
* Internet Connectivity – Fiber optic cables must be manufactured in a pure helium environment.
* Electronics – Many electronics and semiconductors – including mobile phones – require helium to be used at various stages of the production process.
* Computers – Helium-filled hard drives offer 50% higher storage capacity with 23% lower operating power.
* Car Air Bags – Helium is the gas of choice for effecting the near instantaneous deployment of air bags in cars.
Helium is used by companies like Amazon, Google and Netflix to help cool their data centers. And both the U.S. and Canadian governments have recently added helium to their critical minerals lists.
Not to mention... an estimated $12 million worth of helium is needed for a single space rocket launch.
In fact, the single largest buyer of helium is NASA, consuming almost 75 million cubic feet annually to cool liquid hydrogen and oxygen for rocket fuel.
And with the highly publicized rocket launches from Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin...that consumption of helium for space launches is only likely to increase in the months ahead.
That’s why Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) right now appears to be such an attractive potential investment.
- The company is led by a team of oil and gas executives with a history of success in the exploration space, including the discovery of the Montney Formation, one of the premier natural gas formations in North America.
- Avanti Energy’s shares are currently trading for less than $1.50 per share – meaning there is tremendous upside potential.
- Beacon Securities has established a price target of $3.80 for the stock – more than a 100% increase from its current level and maintains its Spec Buy rating on the company.
- In addition, Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) Chris Bakker is so confident in the company’s potential that he spent nearly $500,000 buying stock at levels nearly double where the stock is now, with purchases at $2.91 per share on May 5, 2021 and at $2.45 per share in June. And with the recent drilling announcement, Bakker started buying again...
- The company has identified a significant potential helium resource on its Greater Knappen property and is moving quickly to commence drilling. With a target spud date in early December for the first well, the company is on target to begin initial production upon successful testing sometime in Q3 of 2022.
Other companies that could benefit from a different kind of shortage…
While the tech industry runs on helium…it is also dependent on another kind of resource. One that both a shortage of materials, and production shutdowns during COVID-19 has made increasingly scarce. Semiconductors.
One of the world's leading semiconductor manufacturers, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) has a storied history and helped shape many technologies we rely on today. Founded by Morris Chang in 1987 as part-time contract chipmaker for IBM and Motorola--the company that would eventually become known simply as "TSM '' or Taiwan Semiconductor Manufacturing Company was only 200 strong when it started out back then! It wasn't until quality control became its top priority day 1 though; this focus makes all difference because even with more employees than any other foundry group at over 14k people now (with plenty still coming soon) they're able to maintain those high standards which led them into becoming one of Apple Inc.'s primary suppliers alongside Nvidia Corp., Qualcomm, and more.
The global semiconductor industry is a highly competitive one and only five companies in the world own chip-making facilities, making Taiwan Semiconductor a standout in the industry.. Indeed, many leading top semiconductor companies are "fabless," meaning they only design the chips but rely on other companies, known as foundries, to actually make the chips. The shift to outsourcing has been having a big effect on structural changes and related capacity because companies that cut orders in the early days of the pandemic have been forced to go to the back of the line.
Taiwan Semiconductor is a key player to watch in both the helium shortage and the semiconductor shortage. As the world’s largest chipmaker, it needs helium to survive. And with a semiconductor supply squeeze looming, it could stand to benefit big when Big Tech comes knocking.
Intel Corporation (NASDAQ:INTC) is a multinational technology company headquartered in California. It has been around since the late 1950's, when it was founded by Robert Noyce and Gordon Moore who first coined their portmanteau name- Integrated Electronics or Ie. Intel supplies processors for computer systems such as desktops laptop servers tablets mobile phones (including smartphones) and more; they also make motherboard chipsets that connect these devices together so you can use your processor effectively while having access to fast memory too!
At its core, Intel is a chipmaker. And a big one at that. It’s also a leader in the global semiconductor game thanks to its investments in 65nm process, an advanced node used in volume CMOS semiconductor fabrication. Intel has manufactured semiconductors in Ireland since 1990, and has invested around $6 billion there in this time, but is beginning to branch out with new investments in the United States, as well.
Advanced Micro Devices (NASDAQ:AMD) is an innovator in the world of computing and graphics. The company was founded over forty years ago with a single mission: to advance technology as fast it could be invented. Since then, they've become one of the most relied upon brands for processing power – both at home on your own PC or game console; but also when you need high performance computer systems that can process data quickly enough maybe even live video streaming where every millisecond counts!
Advanced Media Devices isn’t just building home computers, either. AMD also is building CPUs to be used in massive data centers, the kind supporting the likes of Microsoft’s Azure cloud-based workstations and desktops and much more. And its GPUs are providing the speed, security, and scalability to keep these data centers performing at the level needed to push modern tech into the future.
Nvidia (NASDAQ:NVDA), AMD’s biggest competitor, is a company that develops graphics processing units, or GPUs. Nvidia was founded in 1993 and has been making waves in the gaming industry ever since with their innovative products. They are continually releasing new technologies to stay ahead of the competition and have an excellent reputation for quality. The company also manufactures processors that power many other devices such as automobiles, robots, and smartphones. These processors are often used for artificial intelligence systems like driverless cars or voice commands on mobile phones so we can expect Nvidia's technology to keep getting more advanced over time!
Nvidia's dedication to innovation is clear in all areas of tech, from computer graphics and artificial intelligence research that are core to robots or future cities.
It’s also pushing new technologies into the world with its enterprise server GPUs—even setting records! Thanks for being there when we needed you most, Nvidia--and don't worry: your hardware will not go unsupported now that it has been so instrumental before this point too.
With more and more demand coming for semiconductors and new chip technology hitting the market, companies like Nvidia, AMD, Taiwan, Samsung and Intel are going to be some of the biggest benefactors. They’re already well-known in the industry, and this could just be their time to really shine. But a looming helium shortage could present a number of complications for the booming tech giants.
IBM Corporation (NYSE:IBM) or International Business Machines Corporations an American multinational technology company with headquarters in Armonk New York. They specialize in developing and providing computer related products worldwide like the automated teller machine (ATM), magnetic stripe card which we use today for credit cards among other things such as floppy disks drives; hard disk drives that store data magnetically on aluminum foil within a circular shape called platters rotating at over 3 inches per second so it can be read by head movements inside our computers.
IBM is often considered one of the most innovative companies in its field, with a long list of inventions to date. In fact they were responsible for many technologies that are now taken-for granted and seen around us every day like ATMs or floppy disks! And while this history certainly makes them an excellent candidate when it comes time to explore new trends such as blockchain technology; their rapid growth means they aren't ignoring any potential opportunities - which could very well turn out right where you least expect them first.
IBM’s blockchain platform, built on the open-source Hyperledger Fabric platform from the Linux Foundation is helping companies with a wide variety of blockchain solutions including tools for the finance sector, supply chain transparency, and letters of guarantee. IBM’s blockchain platform even helps interested parties develop their own blockchain solutions through educational tools and personalized assistance.
Lithium Americas Corp. (TSX:LAC) is one of America’s most critical and promising pure-play lithium companies. With two world-class lithium projects in Argentina and Nevada, Lithium Americas is well-positioned to ride the wave of growing lithium demand in the years to come. It’s already raised nearly a billion dollars in equity and debt, showing that investors have a ton of interest in the company’s ambitious plans.
Lithium America is not looking over the growing pressure from investors for responsible and sustainable mining, either. In fact, one of its primary goals is to create a positive impact on society and the environment through its projects. This includes cleaner mining tech, strong workplace safety practices, a range of opportunities for employees, and strong relationships with local governments to ensure that not only are its employees being taken care of but local communities, as well.
Celestica (TSX:CLS) is a key company in the resource boom due to is role as one of the top manufacturers of electronics in North America. Celestica’s wide range of products includes but is not limited to communications solutions, enterprise and cloud services, aerospace and defense products, renewable energy, and even healthcare tech.
Due to its exposure to the renewable energy market, Celestica’s future is tied hand-in-hand with the green energy boom that’s sweeping the world at the moment. It helps build smart and efficient products that integrate the latest in power generation, conversion and management technology to deliver smarter, more efficient grid and off-grid applications for the world’s leading energy equipment manufacturers and producers.
Turquoise Hill Resources Ltd. (TSX:TRQ) is a key player in Canada’s resource and mineral industry. It is a major producer of coal and zinc, two resources with distinctly different futures. While headlines are already touting the end of coal, zinc is a mineral that will play a key role in the future of energy for years and years to come.
In addition to its zinc operations, Turquoise Hill is also a significant producer of Uranium. Uranium is a key material in the production of nuclear energy, which many analysts are suggesting could be a major component in the global transition to cleaner energy. While the mineral has not seen significant price action in recent years, there are a number of new projects set to come online across the globe in the medium term, which could be a boon to Turquoise Hill, especially as alternative energies gain traction in the marketplace.
Teck Resources (TSX:TECK.A) could be one of the best-diversified miners out there, with a broad portfolio of Copper, Zinc, Energy, Gold, Silver and Molybdenum assets. It’s even involved in the oil scene! With its free cash flow and a lower volatility outlook for base metals in combination with a growing push for copper and zinc to create batteries, Teck could emerge as one of the year’s most exciting miners.
Though Teck has not quite returned to its January highs, it has seen a promising rebound since April lows. In addition to its positive trajectory, the company has seen a fair amount of insider buying, which tells shareholders that the management team is serious about continuing to add shareholder value. In addition to insider buying, Teck has been added to a number of hedge fund portfolios as well, suggesting that not only do insiders believe in the company, but also the smart money that’s really driving the markets.
Maxar Technologies (TSX:MAXR) is one of the leading space companies on the planet, founded nearly 20 years ago. Maxar has a variety of services, including satellite development, space robotics, and earth observations. One of their most well-known products is the Canadarm2 robotic arm for the International Space Station (ISS). The ISS has been operational since 1998 with more than 100 missions to date. Maxar Technologies has had a history of partnering with NASA to maintain the ISS's systems as well as providing them with new technologies such as the Canadarm2 robotic arm. is a moon-bound tech stock to keep an eye on. While space firm specializes in satellite and communication technologies, it is also a manufacturer of infrastructure required for in-orbit satellite services, Earth observation and more.
More importantly, however, Maxar’s subsidiary, SSL, a designer and manufacturer of satellites used by government and commercial enterprises, has pioneered research in electric propulsion systems, lithium-ion power systems and the use of advanced composites on commercial satellites. These innovations are key because they allow satellites to spend more time in orbit, reducing costs and increasing efficiency.
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FORWARD LOOKING STATEMENTS. This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that prices for helium will significantly increase due to global demand and use in a wide array of industries (including key technology sectors) and that helium will retain its value in the future due to the demand increases and overall shortage of supply; that the Avanti team will be able to develop and implement helium exploration models, including their own proprietary models, that may result in successful exploration and development efforts; that historical geological information and estimations will prove to be accurate or at least very indicative of helium; that high helium content targets exist in the Alberta and both Montana projects; and that Avanti will be able to carry out its business plans, including timing for drilling and exploration. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that demand for helium is not as great as expected; that alternative commodities or compounds are used in applications which currently use helium, thus reducing the need for helium in the future; the degree of success of the coming drilling campaign; the accuracy of the initial estimates of helium on the land; the commercial viability of any obtainable helium, the ability to get any helium obtained to market; the accuracy of the production timeline estimates; that the Avanti team may be unable to develop any helium exploration models, including proprietary models, which allow successful exploration efforts on any of the Company’s current or future projects; that Avanti may not be able to finance its intended drilling programs to explore for helium or may otherwise not raise sufficient funds to carry out its business plans; that geological interpretations and technological results based on current data may change with more detailed information, analysis or testing; and that despite promise, there may be no commercially viable helium or other resources on any of Avanti’s properties. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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