Our opinion on the current state of REN

Renergen (REN) describes itself as an "...integrated alternative energy business" which invests in renewable energy projects in Africa. The company listed on the JSE in June 2015 and has been losing money every year since. This is reflected in its falling share price. The company is investing in liquified natural gas (LNG) and helium. Now it is planning to list on the Australian Stock Exchange - where it says its business will be better understood than on the JSE. 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 over-subscribed. 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 aluminium case which can keep vaccines cold for up to 30 days. This could be a game changer for the company. On 21st June 2021 the company announced a helium discovery at Evander with a concentration of 1,1%. On 9th March 2021, the company 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 six months to 31st August 2023 the company reported that it had produced 2386 tons of LNG and had, "Approval of senior debt funding by the DFC (US$500.0 million) and SBSA (US$250.0 million), subject to conditions precedent". In an update on the 3rd quarter of 2023 the company reported, "8 wells spudded, with an early strike on the first well producing 115,000 standard cubic feet per day and 3.3% helium concentration". The share may be a speculative opportunity, but it is very risky and volatile. We advise at least waiting for the share price to break up through its long-term downward trendline before investigating further - which may be imminent.