Past year: ▲ 65%(36.5c – 1.34 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
20 Dec 2021remuneration report● Neutral
Directors and officers accepted share appreciation rights approved at the July 2021 AGM, including 2.36m each for CEO Marani and COO Mitchell and 1.652m for CFO Harvey. Award prices run R37.50-R75, vesting only if the share price reaches R75-R150 over 2-5 years.
11 Nov 2021director officer appointment● NeutralMajor
Chairman Brett Kimber, after 7 years, steps down from 30 November 2021 as the board begins rotating non-executive directors. Director Dr David King becomes chairman from 1 December. King has over 40 years in oil and gas and has been on the board since June 2019.
3 Nov 2021investor presentation● Neutral
Presentation repeating the Sproule reserves upgrade (1P helium 7.2 Bcf, 1P methane 215.1 Bcf) and NPV figures, plus background on the gas and market. Targets helium production by Q1 2022. No new announcement beyond the reserves release.
3 Nov 2021resource reserve update▲ GoodMajor
Sproule update as of 1 September 2021: 1P helium reserves up 620% to 7.2 Bcf and 1P methane up 427% to 215.1 Bcf. 2P helium is 13.6 Bcf (from 3.4) and 2P methane 407 Bcf. This resolves the pending reserves update. 2P post-capex NPV at 10% is R51.5bn.
1 Nov 2021well test result▲ Good
Completed well R2D2 flows 187,000 scf/day with 1.9% helium and 90.8% methane, well above the 120,000 average of current wells. This firms up the earlier preliminary 1-2.5% helium estimate. The intersection was almost exactly on prognosis.
25 Oct 2021half year report● Neutral
Half year to 31 August 2021: revenue R1.2m (R0.9m before) and loss R25.2m versus R26.9m, loss per share 21.05c. Net tangible assets per share rose 21.5% to 124.64c. Mazars review was unmodified. Revenue growth is expected once the plant is commissioned.
18 Oct 2021material agreement▲ GoodMajor
Forward sale of up to 100,000 mcf of helium over 19 years to Argonon Helium US, prepaid at US$230-270 per unit, potentially about US$25m. Argonon has no obligation to buy. Funds, if received, would speed Phase 2 drilling without an equity issue. Argonon aims to create a helium spot market.
18 Aug 2021contract award▲ GoodMajor
Five-year LNG supply deal with Consol Glass from January 2022, priced off the South African floating LPG price, ramping to about 14 tons a day within three months. It is Renergen's first LNG contract not tied to supplying trucks.
4 Aug 2021material agreement▲ GoodMajor
Three further conditional take-or-pay Phase 2 helium deals: Linde and Messer (15 years each) and Helium24 (10 years). With iSi, about 65% of Phase 2 output is now contracted, 220 containers a year. Production is anticipated in Q4 2023, and contracts can be terminated if delayed.
12 July 2021drilling result▲ GoodMajor
P12, earlier slated for plugging, began flowing after drilling fluid dried and is now over 30,000 scf/day with 1.9% helium. This reverses the 30 June plan to abandon it and lifts the campaign to 5 successful wells out of 6.
1 July 2021annual report● Neutral
Integrated Annual Report 2021 for the year to 28 February 2021, covering strategy, governance and financials. It repeats previously announced results and notes Brian Harvey became CFO on 1 May 2021. Text shown is largely contents and introduction.
1 July 2021annual report● Neutral
Appendix 4G governance checklist lodged with the annual report. It points to the corporate governance statement on the company website. Administrative filing with no new business information.
30 June 2021drilling result▲ GoodMajor
C3PO struck gas flowing over 30,000 scf/day with 1.7% helium and 95% methane. R2D2 shows preliminary helium of 1-2.5%. Wells P10 and P12 will be plugged and abandoned as less promising. The company calls it 4 strikes from 6 planned wells.
25 June 2021capital raising announcement● NeutralMajor
Placement completed raising about A$10m: 2,453,328 CDIs at A$1.78 on ASX and 3,178,459 shares at R19.10 on JSE, 5,631,787 new shares in total. Funds go to Virginia exploration, Phase 2 feasibility studies and working capital. MST was lead manager.
What it means for a shareholder
2.5m new shares at A$1.78 to raise about A$4.4m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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21 June 2021drilling result▲ GoodMajor
Helium found at the Evander exploration rights at 1.1% in an old, waterlogged well flowing 5,000 scf/day. The Virginia pipeline passed performance tests, with about 7% more flow and over 30% less power use than designed. Evander is a small, early-stage show.
18 June 2021drilling result▲ Good
R2D2 intersected the target gas-bearing fracture close to prediction, between MDR5 and HDR1. Gas composition results are due within days. This continues the drilling programme and suggests wells could be spaced closer together.
31 May 2021annual report● Neutral
Audited annual financial statements for the year to 28 February 2021, approved by the board on 28 May 2021, prepared on a going-concern basis. Directors cite plant full commissioning in the 2022 financial year. Brian Harvey is listed as CFO. Largely repeats the preliminary results.
10 May 2021drilling progress report▲ Good
R2D2 reached the base of the Karoo formation, with gas odours in the deeper section like the successful MDR1. Deepening needs several weeks of casing and approvals, so the rig moves to a new site, C3PO. No flow or helium result yet.
3 May 2021annual report● Neutral
Preliminary results for the year to 28 February 2021: revenue R1.9m (R2.6m prior), loss after tax R42.6m (R52.6m), loss per share 36.29c versus 47.92c. Figures are unaudited; the audit is ongoing. This matches the earlier trading statement of a narrower loss.
21 Apr 2021contract award▲ Good
DPD Laser agreed to buy the first 110 Cryo-Vacc cases, to be delivered by end of May 2021 and rented out. Renergen says it is not material to revenue. A second validation round was submitted.
20 Apr 2021director officer appointment● NeutralMajor
Brian Harvey, previously CFO of ASX/JSE-listed Resource Generation, becomes CFO from 1 May 2021. He fills the vacancy left by Fulufhedzani Ravele's resignation.
13 Apr 2021material agreement▲ GoodMajor
Replacement notice: ten-year take-or-pay helium deal with iSi Automotive, about 20 containers a year, conditional on Phase 2 milestones; plant completion is expected late 2023. Either side can terminate if delayed. Renergen said it will need capital but has not begun raising.
12 Apr 2021material agreement▲ Good
Renergen announced its first helium sales deal, with an unnamed automotive supplier, for substantial Phase 2 volumes. The release was later withdrawn and replaced as non-compliant, so see the 13 April notice for terms.
6 Apr 2021regulatory community update▲ Good
Fifth major Phase 1 milestone completed on time: plant equipment including compressor modules, piping and LNG storage tanks shipped from China. Renergen still targets production in 2021. This ends the earlier worry about delayed batch shipments.
6 Apr 2021director officer appointment▼ BadMajor
Financial director and CFO Fulufhedzani Ravele resigned immediately to pursue other opportunities. The board has started a search for a replacement.
31 Mar 2021other● Neutral
JSE trading statement: loss per share for the year to 28 February 2021 is expected to fall by 21.8% to 41.8% from 47.92 cents. The prior year had once-off DFC loan and IPO costs. Figures are unreviewed.
29 Mar 2021well test result▲ GoodMajor
Lab results show helium of 4.38% in P007 and 3.15% in MDR1, whose flow rose almost 90% to about 164,000 cubic feet a day. Resolves the pending P007 helium analysis, and the wells show no interference.
11 Mar 2021drilling result▲ GoodMajor
Re-drilled legacy well MDR1 began flowing about 86,000 cubic feet a day after intersecting a fault, less than 600m from the new plant. This resolves the earlier gas shows in mud, and suggests wells can be spaced closer together.
9 Mar 2021drilling result▲ GoodMajor
Exploration well P007 struck gas at just over 400m, flowing over 200,000 cubic feet a day, higher than almost all existing wells. It lies outside the Phase 1 focus area but near the gathering system. Helium results are delayed by lab maintenance.
4 Mar 2021other● Neutral
Clients of Mergence Investment Managers sold shares, leaving a 3.9% holding. The notice names PIC in the text, which appears to be an error (inference).
