Pulsar Helium (TSXV:PLSR) - Exceptional 14.5% Helium Grade Powers Fast-Track U.S. Production Strategy

Interview with Thomas Abraham-James, President & CEO of Pulsar Helium Inc.

Our previous interview: https://www.cruxinvestor.com/posts/pulsar-helium-tsxvplsr-tapping-into-helium-shortages-with-flagship-us-project-4705

Recording date: 14th January 2025

Pulsar Helium, a dedicated helium exploration company, is advancing its flagship Topaz project in Minnesota, which has shown exceptional potential with helium concentrations up to 14.5%. The project, acquired in 2021 from a nickel exploration company that made the initial helium discovery, represents a significant opportunity in the North American helium market.

The company recently completed deepening its Jetstream-1 discovery well from 2,200 feet to 5,100 feet, encountering additional helium-bearing reservoir rock. In parallel, Pulsar is drilling a second well, Jetstream-2, to further delineate the resource. The company employs air drilling technology, which allows faster penetration through the crystalline basement rock, though this method provides conservative estimates of helium concentrations due to dilution.

Pulsar has partnered with Chart Industries, a multi-billion-dollar U.S. company, to design and engineer the processing facilities. The planned helium plant will be modest compared to typical natural gas facilities, focusing on separating carbon dioxide before processing helium through cryogenic distillation. The separated carbon dioxide could provide additional value, given the current U.S. shortage.

The company aims to reach a final investment decision (FID) within 24 months, followed by an 18-month construction period before commencing production. This timeline aligns with favorable market conditions, as global helium demand continues to grow, driven by semiconductor manufacturing, MRI scanners, and space launch applications.

A key market challenge Pulsar aims to address is the current industry's reliance on helium as a byproduct of natural gas production, which accounts for over 95% of global supply. This dependency creates inflexibility in the supply chain, as helium production is tied to natural gas extraction rather than market demand. When customers don't need the product, it's often wasted, venting into the atmosphere.

Pulsar's strategic advantage lies in being a pure-play helium producer, offering dedicated production that can respond to market demands. With the U.S. Federal Helium Reserve winding down sales and domestic production declining, the company is positioned to capture market share in the evolving helium landscape.

The project benefits from its location in Minnesota, a stable jurisdiction, and the high concentration of helium discovered. These factors, combined with the partnership with Chart Industries and the company's focused development strategy, present Pulsar Helium as a significant player in addressing the growing supply-demand gap in the U.S. helium market.

View Pulsar Helium's company profile: https://www.cruxinvestor.com/companies/pulsar-helium

Sign up for Crux Investor: https://cruxinvestor.com