But the huge growth potential is hard to resist, with some tiny shares becoming 10-baggers in a year.

And that’s why Helix Exploration (LSE:HEX) caught my attention. The helium producer only listed in 2024 but is already up almost 200%.

Did I miss the boat? Maybe not. This past month knocked 17% off the share price, so I could have a second chance to grab the shares at a bargain. But are they really worth the hype?

Why Helix looks interesting

In March, helium prices jumped after disruption to Qatar’s liquified natural gas (LNG) processing linked to the Iran war. That matters because helium is usually recovered as a byproduct of natural gas processing, so any hit to LNG output can tighten supply quickly.

Qatar is a major supplier, so when its output is disrupted, the whole market feels it. Reports from March said spot helium prices had doubled since the Middle East crisis began.

For Helix, that is the key attraction. If higher helium prices hold, a small producer with growth potential could see the value of its projects re-rated by the market.

So what’s the catch? Well, this is still a tiny, early-stage business, so I’d be putting my faith in its strategic execution as much as on the commodity price.

Solid financials though

Like most penny stocks, Helix is still loss-making. But the numbers are moving in the right direction. Its losses improved from £2.17m in 2024 to £1.86m in 2025, suggesting the business is becoming a little more efficient as it develops.

Here are the key figures:

• Market-cap: £69.9m.
• Share price: 3.58p.
• Listed in 2024 (so very limited public-market history).
• Losses reduced by 15.38% year on year.
• Net assets rose to £15.84m in Q3 2025, up from £8.69m a year earlier.

On top of those encouraging figures, the balance sheet looks healthy, with current assets easily covering liabilities.

But income investors, look away now. Unsurprisingly, there’s no dividend here. Companies at this stage usually reinvest every spare pound into drilling, plant work and development rather than paying cash out to shareholders.

The main risk is one that we often see when it comes to penny stocks: any major slip up could lead to a domino effect of funding cuts, operational delays and rising debt. That wouldn’t do the share price any good.

Risk and reward

Helix is not a set-and-forget income stock. This is highly speculative territory, and it should be treated that way.

But the appeal is that the company is debt free, has better balance sheet cover than many peers and could benefit if helium prices stay firm.

For that reason, I think it’s worth considering – but don’t get carried away. This should be a 2%-4% allocation at best, within a diversified portfolio.

In a market where helium prices are being helped by Middle East disruption, the stock has a genuine tailwind. But with penny stocks, the position size matters just as much as the story.

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