Pulsar Helium Inc. (TSX-V: PLSR): US federal laboratories confirm concentration of helium-3 and helium-4 at Topaz
• Independent analyses by the USGS Noble Gas Laboratory (Denver) and Lawrence Livermore National Laboratory (California) confirmed ~8% ⁴He and a ³He/⁴He isotopic ratio of ~0.10 Rₐ in the Jetstream #1 gas sample. These results are consistent with earlier measurements (7.7% ⁴He; ³He/⁴He = 0.104 Rₐ) and imply a ³He concentration of ~11.2–11.9 ppb. This is near the high end of an earlier reported value (14.5 ppb).• ³He remains a strategically important and exceptionally scarce isotope. It commands ~US$2,500/l in specialist markets (equivalent to ~US$18.7 mm/kg). Its neutron absorption properties make it essential for nuclear security and scientific detection systems, while its quantum behaviour and ultra low boiling point underpin advanced cryogenic cooling used in quantum computing. In the longer term, ³He is also a potential fuel for aneutronic fusion when paired with deuterium, unlocking high yield energy with minimal radioactive waste.
• Pulsar needs to understand which separation technique is the most applicable to Topaz gas stream. There are seven existing techniques including including cryogenic superleak, heat flush, cryogenic distillation and cryogenic adsorption, each with advantages and limitations. Engagement with the U.S. government could therefore be highly strategic, both technically and financially.
• Recent US government actions demonstrate a clear willingness to invest directly in critical‑mineral small caps with domestic assets. In October, the US Department of War invested US$35.6 mm of new equity into Trilogy Metals for a 10% ownership stake. Trilogy holds a 50% interest in the Upper Kobuk Mineral Project (copper and associated metals) in Alaska. The company’s share price appreciated 4.5x following the announcement.
• The US Department of Energy has also taken a 5% equity stake in Lithium Americas alongside providing loan support. Securing similar US government participation would be transformational for Pulsar Helium, materially enhancing Topaz’s development pathway and lowering the company’s cost of capital.
• Upcoming well test results from the appraisal drilling programme represent important near term catalysts for the share price. Pulsar could take FID at Topaz in 2026, enabling the booking of helium reserves. We have increased our target price of £0.90 per share.
Valuation
We have rolled forward our DCF model by a year. Our new unrisked NAV for Pulsar stands at £2.33/sh (>3x the current share price), with a ReNAV of £0.86/sh. This valuation does not include any contribution from ³He, which represents material additional upside potential.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
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