Avanti Energy, Inc. (OTCMKTS:ARGYF) (CVE:AVN) a helium exploration, development and production company operating in western Canada and the United States, just announced agreements to acquire two properties totalling ~50,000 acres of land in Montana. These potential acquisitions would add to ARGYF’s portfolio of projects including the Knappen and Aden projects both located in Alberta, Canada.
Investors have been happy with ARGYF this year, as the stock is up 415% YTD. Although, the stock seems to have hit a bit of a wall recently. The latest news could bring new interest.
ARGYF is an interesting opportunity as it is a rare helium play. Since investors don’t hear much about the element most known for filling balloons and making people’s voices sound funny if inhaled, let’s discuss why helium has some investments blowing up.
By 2025, it’s estimated that the helium market will reach $18.18 billion.
The benefits of helium extend across multiple industries due primarily to its lucrative properties. Helium enhances the functionalities of several technologies such as; fibre optic cables, MRI machines, and data centers. It is utilized in medical technologies, industrial applications, and space exploration.
Helium in Medical
There are several ways Helium is used in the medical industry. Two applications in particular require helium and are areas of focus for ARGYF; heliox and MRI machines.
Heliox is a combination of helium and oxygen used for treating people with difficulty breathing. Primarily patients suffering from asthma. Asthma affects between 5-10% of the population, so it’s a pretty big opportunity.
MRI machines, another application using Helium, are ubiquitous in the medical field and extremely useful. Unlike X-Rays and CT Scans, MRI machines do not give off harmful radiation, and are useful in everything from cancer screenings, to ligament tears. MRI machines require 800 litres of helium.
Helium in Aerospace
Helium is absolutely essential to rockets. The gas is not only used as a propellant, but also helps expel hydrogen and oxygen in tanks when necessary.
Helium in Technology
Since helium is lighter than air, helium filled hard drives require 20% less energy to spin the fans inside the drive. The drives also generally offer 50% higher storage capacity.
Helium is also useful in creating high-speed internet components such as fiber optic cables. The cables need to be produced in a helium environment.
These are only a few applications utilizing the noble gas.
As it is looking to serve these industries through exploration, ARGYF is worth adding to your watchlist.