Renergen (REN) describes itself as an "integrated alternative energy business" that invests in renewable energy projects in Africa. The company listed on the JSE in June 2015 and has been losing money every year since, which is reflected in its falling share price. Renergen is investing in liquified natural gas (LNG) and helium. The R125m rights issue was fully underwritten and enabled it to access a R218m loan facility. Its initial public offer (IPO) on the Australian Stock Exchange (ASX) was more than two times oversubscribed. It claims to have proven helium reserves of over 6bn cubic feet.
On 18th May 2018, the US government identified helium as critical to national security, causing the price to rise by 135%. On 10th December 2020, the company announced the development of an aluminum case that can keep vaccines cold for up to 30 days, which could be a game changer. On 21st June 2021, the company announced a helium discovery at Evander with a concentration of 1.1%. On 9th March 2021, Renergen announced a significant gas strike in the Karoo, and then on 12th April 2021, it announced that it had concluded its first deal to sell helium.
In an announcement on 3rd November 2021, the company announced a 620% increase in 1P helium reserves, which caused the share to spike upwards. The announcement of the first production of liquid helium from its Virginia gas project caused the share to rise by just over 9%; however, it remains in a long-term downward trend. On 7th June 2023, the company announced that it had received $750m in further funding from Standard Bank and the International Development Finance Corporation for its Virginia Gas project.
In its results for the year to 29th February 2024, the company reported revenue up 128.4% and a headline loss of 75.07c per share compared with a loss of 19.89c in the previous period. The company reported "some unexpected operational challenges at the VGP, the Group’s primary asset of which it now holds 94.5% subsequent to the sale of the 5.5% stake to MGE (“MGE Transaction”), relating to the LNG and helium operations."
The share may be a speculative opportunity, but it is very risky and volatile. We advised at least waiting for the share price to break up through its long-term downward trendline before investigating further. On 12th August 2024, the company announced that it was fully online and producing liquid helium for sale. The announcement caused the share price to jump, breaking above its long-term downward trendline. We advise caution, at least in the short term.
On 18th May 2018, the US government identified helium as critical to national security, causing the price to rise by 135%. On 10th December 2020, the company announced the development of an aluminum case that can keep vaccines cold for up to 30 days, which could be a game changer. On 21st June 2021, the company announced a helium discovery at Evander with a concentration of 1.1%. On 9th March 2021, Renergen announced a significant gas strike in the Karoo, and then on 12th April 2021, it announced that it had concluded its first deal to sell helium.
In an announcement on 3rd November 2021, the company announced a 620% increase in 1P helium reserves, which caused the share to spike upwards. The announcement of the first production of liquid helium from its Virginia gas project caused the share to rise by just over 9%; however, it remains in a long-term downward trend. On 7th June 2023, the company announced that it had received $750m in further funding from Standard Bank and the International Development Finance Corporation for its Virginia Gas project.
In its results for the year to 29th February 2024, the company reported revenue up 128.4% and a headline loss of 75.07c per share compared with a loss of 19.89c in the previous period. The company reported "some unexpected operational challenges at the VGP, the Group’s primary asset of which it now holds 94.5% subsequent to the sale of the 5.5% stake to MGE (“MGE Transaction”), relating to the LNG and helium operations."
The share may be a speculative opportunity, but it is very risky and volatile. We advised at least waiting for the share price to break up through its long-term downward trendline before investigating further. On 12th August 2024, the company announced that it was fully online and producing liquid helium for sale. The announcement caused the share price to jump, breaking above its long-term downward trendline. We advise caution, at least in the short term.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.