Past year: ▲ 65%(36.5c – 1.34 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
30 June 2022quarterly activities report▲ GoodMajor
Quarter to 31 May 2022: a US DFC retainer letter for up to US$500m of Phase 2 senior debt, with other lenders indicating up to about US$600m more; targeting 65% debt. Commissioning and Gandalf well progress. CEF deal and Ivanhoe due diligence still pending.
30 June 2022drilling result● Neutral
New well Gandalf hit gas at 480m flowing about 90,000 scf/d; it will be drilled to a 1,200m target, expected by end of August. Phase 1 commissioning continues cautiously, with start-up delayed a few weeks to reduce risk, per the CEO.
20 June 2022regulatory community update● Neutral
Notice that the annual BBBEE compliance report and empowerment certificates for Renergen and Tetra4 are published on the company website. Administrative only.
30 May 2022production update● Neutral
Phase 1 commissioning: cooling, water and nitrogen-removal systems are done, with the plant being finished on nitrogen rather than gas for safety. Commercial operation will be timed with customer sites being ready. No start date is given, and 'imminent' turn-on is still pending.
23 May 2022other● Neutral
Two prescribed officers, Khalid Patel and Mandy Stuart, sold small share parcels on market on 19 May 2022: 4,477 shares at R35.50 (about R159k) and 2,802 at R35.00 (about R98k). Minor routine dealing disclosure.
20 May 2022annual report● Neutral
Integrated annual report for the year to 28 February 2022, covering operations, governance and audited financial statements. It repeats known results and events; the supplied text shows no new figures beyond those already reported.
20 May 2022admin correction● Neutral
Appendix 4G corporate governance checklist lodged with the annual report for the year to 28 February 2022. Administrative filing with no new information for shareholders.
2 May 2022production update▲ Good
Phase 1 cold boxes are being purged and pre-cooled with liquid nitrogen ahead of receiving field gas, which is expected in the coming week. Fire protection and instrument air systems are done. Incremental commissioning progress, with no production yet.
2 May 2022annual report● Neutral
Preliminary results for the year to 28 February 2022: revenue R2.6m (up 36.8%), loss R33.8m, loss per share 27.73 cents versus 36.29. Unaudited. Borrowings rose with the final DFC draw and a new R160.7m IDC loan. Plant start-up described as imminent.
26 Apr 2022other● Neutral
Trading statement: loss per share for the year to 28 February 2022 expected between 24.1 and 31.4 cents, 14%-34% lower than 36.29 cents the year before. Attributed to higher energy prices and fewer Covid restrictions. Audited results due about 19 May 2022.
12 Apr 2022production update▲ Good
Hot commissioning of the Phase 1 plant began, with generators synchronised on 10 April and utility systems like air and nitrogen next. This continues the plant start-up that earlier slipped to about April; no first-production date is given.
6 Apr 2022director officer appointment● Neutral
Alex Pickard, Ivanhoe Mines' Vice President of Corporate Development, joins the Renergen board as a non-executive director. This follows Ivanhoe's March investment and gives it board representation.
1 Apr 2022drilling result▲ Good
First two production wells struck gas: Frodo at 23,000 scf/d and Balrog at 90,000 scf/d, with drilling at Balrog continuing. R2D2's flow rose 15% after clean-up. Helium detected in both; composition still to be determined. Balrog was sited by the company's AI vegetation-stress method.
1 Apr 2022quarterly activities report● Neutral
Quarter to 28 February 2022: recaps the Italtile LNG deal, Ivanhoe placement and CEF term sheet, plus new Frodo and Balrog gas wells. All plant modules are on site. Two best Virginia exploration rights submitted for renewal; three weaker ones replaced by technical cooperation permits.
28 Mar 2022asset acquisition disposition▲ GoodMajor
Non-binding term sheet for state-owned Central Energy Fund to take 10% of Tetra4, the Virginia Gas Project owner, for R1bn (A$91.3m), to fund Phase 2. Subject to due diligence and approvals within 141 days, after which price is renegotiated if no binding deal.
15 Mar 2022capital raising announcement▲ GoodMajor
Ivanhoe Mines buys 5,631,787 shares at R35.625 (about A$3.24), raising R200.6m (A$18.3m) for a 4.35% stake. A 120-day due diligence could lead to a 25% holding, then an option to reach 55% via up to US$250m of equity for Phase 2.
4 Feb 2022contract award▲ GoodMajor
Five-year LNG supply deal with Ceramic Industries, an Italtile subsidiary, for up to 800 GJ a day at a fixed price with CPI escalation, plus two optional five-year renewals. It depends on Phase 1 commissioning and customer site readiness. Management calls it the second and final industrial Phase 1 contract.
31 Dec 2021quarterly activities report● Neutral
Appendix 5B for the quarter to 30 November 2021: cash R75.3m, up from R51.2m, on R112.1m of borrowings, with no equity raised. Operating outflow R8.1m, investing outflow R74.4m. Facilities R648m, fully drawn, after the final US$7.5m DFC draw. DFC repayments start August 2022.
31 Dec 2021quarterly activities report● Neutral
December 2021 quarter: Argonon helium deal, R2D2 result, reserves upgrade and David King as chairman. Phase 1 commercial operation slips to about April 2022 (March targeted in September) after Covid cases, rain and shipping delays; commissioning is due from December 2021. Cryo-Vacc is being prepared for commercial roll-out.
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.
30 Sept 2021quarterly activities report▲ Good
September 2021 quarter: Consol LNG deal, 5 of 6 wells successful, and Phase 2 offtake covering 65% of output. The final US$7.5m of the DFC loan was drawn. Only two equipment batches remain to ship from China, due mid-October. Sproule reserves update is under way.
30 Sept 2021quarterly activities report● Neutral
Appendix 5B for the quarter to 31 August 2021: cash rose to R51.2m, helped by R108.9m of equity proceeds (the June placement). Operating outflow was R26.6m and investing outflow R44.2m. Loan facilities total R584m, of which R475m is drawn.
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.
