The average penny exchange rate is extremely volatile and Helium One Global (LSE: HE1) is certainly no exception. It’s up 272% since the start of 2024, but it’s also down 66% since February.

The exploration company went public at the end of 2020, after which its shares soared like a helium balloon. However, since reaching 27p in mid-2021, their price has declined steadily and they are currently trading at less than 1p each.

However, the company has made significant operational progress. So could these be the next penny stocks for millionaires? And if so, should I invest? Let’s dive in.

Not just sizzling air

Helium One is a revenue-generating company focused on the exploration and development of helium resources. It has projects in Tanzania and a 50% stake in the Galactica-Pegasus project in Colorado, USA.

The company has already identified helium-rich gas in Tanzania and is applying for a mining license there.

Meanwhile, Colorado regulators have approved five fresh proposed helium wells for a U.S. project. Drilling was supposed to start now but has been delayed (more on this below).

What’s so special about helium?

Helium is a colorless and scentless gas that is ample in the universe but sporadic on Earth. Most of this mineral is found in natural gas fields, although in tiny quantities, making it challenging to extract.

It has a wide range of applications in various industries and fields. For example, it is crucial in MRI scanners, is used in semiconductor production, and is needed in space exploration to cold rocket engines and pressurize tanks.

As global demand for these technologies increases and supply becomes circumscribed, prices are expected to rise. That’s why it’s a valuable commodity, and not just for filling balloons!

It was raining

Today (December 13), the company announced that due to soggy weather, construction of wells and access roads at the Colorado project site has been postponed.

Its partner and project operator, Bluestar Heliumpostponed drilling until mid-January 2025 to avoid unnecessary costs during the holiday season.

However, the company said the overall project schedule remains on track, with production expected to begin in the first half of 2025.

As I write, the market doesn’t seem concerned because the share price has risen very little.

Reaching £1 million

If Helium One manages to keep this valuable gas flowing and enters into supply contracts, the share price could rise significantly.

We saw such potential in January 2024, when it exploded 1,300% higher in two weeks. If the price rose this much again from today, an investor would need to have around £71,500 in shares to reach £1 million.

I wouldn’t invest PLN 71,000. pounds in penny stocks, so it wouldn’t make me a millionaire, at least in this scenario.

But should I take a boat?

For the fiscal year ended June 30, the company reported a total loss of $11 million. It had $11.6 million in cash as of June, underscoring its circumscribed financial resources and the risks involved.

This year, it raised funds by issuing shares in February, June and August. Then this month, it issued a block of shares in the service provider instead of cash. This level of shareholder dilution turns me off.

Helium One is an compelling penny stock investment with potential, but it’s definitely too risky for my taste. I will invest elsewhere.