According to some, few issues today are as urgent as climate change. The world is aiming for a cleaner planet by 2050, and while alternative energies have made significant strides, imagine the potential of an infinite clean energy source. Enter Helium-3. The catch? It's about 400,000 kilometres away on the moon, writes Wealth Within chief analyst Dale Gillham.
Despite this distance, nations like the United States, China and India have set their sights on the moon, lured by the practical and financial prospects of Helium-3—potentially the modern-day equivalent of a gold rush. Historically, some of the most successful companies during gold rushes were those who supplied the tools for mining.
This is where Australia comes into play. With our cutting-edge mining technology and strategic partnerships, we are uniquely positioned to be the ‘tool supplier’ in this space race.
As the competition heats up, Australia's existing partnerships with space-faring nations position ASX-listed companies in the front seat. Here are three that are primed to benefit from this rapidly growing sector.
Three stocks to watch
Electro Optic Systems Holdings (ASX: EOS)
Known for its advancements in satellite communication and space situational awareness, Electro Optic Systems Holdings Ltd is well-placed to benefit from increased investment in lunar missions.
The stock has been on an upward trajectory since 2003 and is currently trading around $2.00. The last time it hit this price level was in 2016 before it surged over 500 per cent in the following four years. If the price continues to climb and surpasses the March 24 high, the odds favour a potential repeat of its 2016 performance, which is very exciting.
Silex Systems (ASX: SLX)
Known for its uranium enrichment technology and exploration in nuclear fusion, which could be adapted for Helium-3, Silex Systems Ltd (ASX:SLX, OTCQX:SILXY) is positioned at the forefront of the energy revolution.
Despite a rise in the share price of over 3,000% since 2020, SLX is still trading at less than half of its all-time high of around $13, which indicates there is significant potential for growth.
Quickstep Holdings (ASX: QHL)
Quickstep Holdings Ltd manufactures advanced composites and components for the aerospace and defence industries and is set to benefit from future space investment. Currently, the share price is trading around $0.20, making this stock quite illiquid.
However, it's worth noting that both EOS and SLX once traded at similar levels before taking off. As such, I would encourage you to watch for a break above $1.00 as this could attract a rush of new investors, increasing liquidity and offering a promising opportunity to invest in a stock with astronomical upside potential.
If you're interested in investing in the space race, keep an eye on these stocks. They have the potential for substantial growth in this expanding sector.
Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au