Where could the Helium One share price go in 2025?
Helium One's share price outlook for 2025 depends on exploration success and global helium demand, with significant potential volatility ahead.
Current market position and company outlook
Shares in Helium One represent a speculative investment in the critical helium exploration sector.
The company's value proposition centres on its Tanzania-based exploration projects, with potential for significant discoveries.
Helium prices remain supported by global supply constraints and growing industrial demand.
Market sentiment towards junior exploration companies could significantly influence share price movement.
Key drivers for 2025 performance
The Helium One share price has garnered significant attention in recent years, as the company positions itself as a leader in helium exploration and production. Helium, an increasingly valuable commodity, has wide-ranging applications in industries such as healthcare, technology, and space exploration.
Many investors and analysts are speculating on where the Helium One share price could go in 2025, based on a combination of market trends, company performance, and broader economic factors.
Let’s explore the potential scenarios that could shape the trajectory of Helium One’s share price over the next few years.
Industry trends favouring Helium One
Helium is a critical resource in modern industries, with its unique properties making it indispensable for applications like MRI scanners, semiconductor manufacturing, and rocket propulsion. However, global helium supplies are under pressure due to declining production from traditional sources such as the United States’ Federal Helium Reserve, which has been winding down operations. This supply-demand imbalance has driven helium prices upward, creating opportunities for new entrants like Helium One to capitalise on the growing demand.
Helium One’s flagship project in Tanzania’s Rukwa Basin has shown promise, with preliminary exploration results indicating significant helium reserves. If the company can successfully move from exploration to production, it could capture a meaningful share of the helium market.
This year the demand for helium is expected to grow further, particularly as industries such as healthcare and space exploration expand. This macroeconomic backdrop provides a favourable tailwind for Helium One’s growth potential.
Key drivers for Helium One’s share price
Several factors will influence Helium One’s share price trajectory in the coming years:
1. Successful Commercialisation of reserves
One of the most critical determinants of Helium One’s future valuation is its ability to transition from exploration to commercial production. Investors will closely watch milestones such as the completion of further exploratory drilling, resource estimates, and feasibility studies. Positive results from these initiatives could significantly boost investor confidence and drive the share price higher.
Trading signals suggest high volatility is likely to persist in junior mining shares.
2. Partnerships and financing
Developing a helium production operation requires substantial capital investment. Strategic partnerships with larger energy companies or securing favourable financing terms will be pivotal. If Helium One can announce joint ventures or other forms of collaboration, it could not only de-risk its operations but also enhance its market perception, potentially lifting its share price.
Helium One daily candlestick chart
3. Market sentiment and speculation
As with many small-cap exploration companies, Helium One’s share price is subject to significant volatility driven by market sentiment. Positive news about helium discoveries, progress on key projects, or favourable market trends could result in speculative buying, pushing the share price higher. Conversely, delays or disappointing results could lead to sharp declines.
4. Global Helium market dynamics
The broader helium market will play a crucial role in determining Helium One’s valuation. Rising helium prices due to constrained supply and increasing demand could enhance the economic viability of Helium One’s projects. On the other hand, any unexpected increase in helium supply from competing projects or technological innovations could exert downward pressure on prices.
Investors in small-cap shares should be prepared for significant price volatility.
Potential scenarios for 2025
While it is impossible to predict with certainty where the Helium One share price will be in 2025, here is an outline a few potential scenarios:
Bull case: significant upside
In a best-case scenario, Helium One successfully proves the commercial viability of its Tanzanian reserves, secures the necessary funding to develop its operations, and begins production by 2025. In this scenario, the company’s share price could experience exponential growth, as investors re-rate the stock based on its production potential and revenue forecasts.
Helium One monthly candlestick chart
In this case the Helium One share price is expected to once again rise by hundreds of percent, as was the case on several occasions in 2024, between January and February and also June and August. The August 2024 peak at 2.15p or even the February 2024 high at 3.70p may be exceeded in a bullish scenario with the November 2020 low at 3.80p representing a technical upside target.
Base case: steady progress
In a more moderate scenario, Helium One achieves some key milestones but faces delays or challenges in scaling up production. The share price may see further sideways trading below the 1 pence level, potentially turning into gradual appreciation as the market rewards incremental progress but remains cautious due to lingering uncertainties. This scenario is plausible given the complexities of transitioning from exploration to production.
Bear case: downside risks
In a downside scenario, Helium One faces setbacks such as disappointing exploration results, financing difficulties, or adverse market conditions. These challenges could erode investor confidence and lead to a further decline in the share price to its June 2024 low at 0.50p or even to its January 2024 all-time low at 0.19p. Such outcomes highlight the risks inherent in early-stage resource exploration companies.
Key risks to consider
While Helium One presents an exciting growth opportunity, investors should remain aware of the risks involved. These include geological uncertainties, regulatory challenges in Tanzania, and the capital-intensive nature of helium production. Additionally, competition from other helium projects and potential technological shifts that reduce helium demand could impact the company’s prospects.
How to trade Helium One shares
- Research the helium market and understand exploration company risks
- Choose whether you want to trade or invest
- Open an account with IG to access UK shares
- Select your preferred trading instrument and develop your strategy
- Monitor exploration updates and manage risk appropriately
This analysis focuses on general market factors as specific price targets would be highly speculative for an early-stage exploration company. Investors should conduct thorough due diligence and consider their risk tolerance before trading.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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