Mendell Helium is about to start a major investment programme, which has the power to transform the company over the next year. Attention will focus on the operations around Fort Dodge where the company has existing helium production. However, this drilling campaign has the ability to substantially add to the resource base, build up the business and create significant shareholder value. We derive a valuation for Mendell of 5.8p/share which is derived from a RENAV (Risked Exploration Net Asset Value). This uses a helium price of US$350/mcf. As the company progresses the operations, we believe that many of the risks should start to be mitigated.

Full note here