LONDON (ShareCast) - (Sharecast News) - Tanzania-focussed helium company Helium One reported a loss before tax of $5.16m (£3.81m) in its annual results on Wednesday, widening from $2.26m year-on-year.
The AIM-traded firm, which remains pre-revenue, said its total loss expanded to $5.02m from $2.29m, after a positive foreign exchange gain of $0.14m.

Losses per share came in at 1.33 cents for the 12 months ended 30 June, compared to 1.49 cents in the 2020 financial year.

"The period to June 2021 has been transformational for Helium One as we continue along the road to seeking a globally strategic discovery," said chairman Ian Stalker.

"Helium remains in critical short supply and a new source of primary helium without associated hydrocarbon production is required to balance the market.

"Helium One has the capacity to discover this new source and become a strategic player in resolving long term supply issues."

Stalker said the company's best estimate unrisked prospective recoverable helium resources of 138 billion cubic feet would be sufficient to supply "the entirety of global demand" for more than 20 years, or between 10% and 15% of global demand for more than a century.

"Over the past 12 months we have added considerable experience to our board and management team with the appointment of industry veterans and rift valley specialists to put us in the best position to deliver a discovery that makes this ambitious project a reality."

Operationally, Helium One said drilling at the Rukwa project during 2021 had "significantly improved" the opportunity of a discovery.

Exploration in the year indicated "good quality reservoirs" beneath thick sealing units, with multiple prospective intervals from basement to near surface, which identified a working helium system.

The company said the start of second phase exploration was ongoing, with the 2D seismic programme completed on 25 December, multispectral satellite spectroscopy results and 'QEMSCAN' results announced, and an electrical resistance tomography survey underway.

It said that was aiming to define additional prospects for drilling in 2022, offering near- and medium-term catalysts for share price growth

Helium One said the Rukwa Basin offered the potential for low capital expenditure modular development, adding that with helium prices at record highs, it had the capacity to generate "exceptional financial returns" on the development of a successful discovery.

"Since joining as CEO, we have completed a successful initial public offering and subsequent £10m capital raise, 200 line kilometre 2D seismic survey, and completed our maiden exploration drilling campaign which defined a working helium system within the Rukwa Basin," said chief executive officer David Minchin.

"The company has now moved onto phase two exploration, with the completion of a 220 kilometre 2D seismic campaign over the northern extensions of known structural highs that we believe act as a charge focus for helium migration.

"This data will be integrated with information from our multispectral satellite spectroscopy study, electrical resistance tomography survey, QEMSCAN results and airborne gravity gradiometry data to deliver a portfolio of prospects for drill testing in 2022."

At 1356 GMT, shares in Helium One Global were up 3.08% at 11.34p.

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