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(Sharecast News) - Canaccord Genuity initiated coverage of Pulsar Helium with a 'speculative buy' rating and a 150p target price on Friday, noting the group was advancing a major primary helium resource at its Topaz project in Minnesota.
The Canadian broker believes Topaz contains more than 1bn cubic feet of recoverable helium, well above the 380m cu ft P50 estimate in the 2024 CPR, after Pulsar successfully encountered helium in seven wells drilled to date.
Pulsar has lined up Chart Industries to supply equipment for a helium plant with around 5m cu meteres per year capacity and contracted up to six additional production wells, with total development costs estimated at $175m.
Canaccord said the tight global helium market - with around 25% of supply offline - supports strong pricing for years to come, and forecasts Pulsar generating over $130m in net profit from FY29 onwards.
First production was expected as early as Q1 2029, supported by recent legislative changes in Minnesota, with key catalysts ahead including a resource update, sales contracts and funding progress at Topaz.
Reporting by Iain Gilbert at Sharecast.com
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