{"id":430,"date":"2023-02-01T01:01:00","date_gmt":"2023-02-01T01:01:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=430"},"modified":"2023-01-31T06:30:11","modified_gmt":"2023-01-31T06:30:11","slug":"renergen-producer-status-achieved","status":"publish","type":"post","link":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=430","title":{"rendered":"Renergen \u2013 Producer Status Achieved"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Share Code: REN \u2013 Market Cap: R3.9bn \u2013 PE: -108x \u2013 DY: 0.0%<\/em><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-9aa6a1de-3384-4832-b5dd-117fafc14228\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/Renergen_Ad-Hoc_1-February-2023.pdf\">Renergen Ad Hoc Note &#8211; 1 February 2023<\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/Renergen_Ad-Hoc_1-February-2023.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-9aa6a1de-3384-4832-b5dd-117fafc14228\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Updates: Phase One now producing both LNG and helium<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Renergen\u2019s Virginia Gas Project\u2019s Phase One is now <strong>producing both LNG &amp; helium, thus signifying the Group\u2019s transition from a developer to a producer<\/strong>. While initial project delays &amp;, later, some operational teething issues pushed this event out later than planned, the Group announced late last year the production of LNG &amp;, mid-January 2023, announced the production of liquid helium. Importantly, this now means that:<ul><li>Phase One will start generating cash flows,<\/li><\/ul><ul><li>This provides further evidence of the resource and management\u2019s ability to execute on the resource, &amp;<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>The combination of the above two further de-risk Phase Two.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The Virginia Gas Project was awarded \u2018<a href=\"https:\/\/smallcaps.co.za\/2022\/12\/strategic-status-awarded-to-renergens-virginia-gas-project-by-the-sa-government\/\">Strategic Integrated Project\u2019<\/a> status by the South African Government, &amp; the Group completed a small capital raise, placing 4.4m shares at c.2464cps in early December 2023, bolstering its coffers.<\/li>\n\n\n\n<li>Finally, the Group announced plans to list on the Nasdaq as a build-up to the equity-leg of Phase Two\u2019s capital raise.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Valuation: Either peers expensive or REN (very) cheap<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/REN-Relative-Chart.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"679\" data-id=\"431\" src=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/REN-Relative-Chart-1024x679.png\" alt=\"\" class=\"wp-image-431\" srcset=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/REN-Relative-Chart-1024x679.png 1024w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/REN-Relative-Chart-300x199.png 300w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/REN-Relative-Chart-768x509.png 768w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/REN-Relative-Chart-624x414.png 624w, https:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/REN-Relative-Chart.png 1087w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n<\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Working through global pure-play helium stocks we found that:<ul><li>There are very few pure-play helium stocks and almost none of them are (or close to) producing anything,<\/li><\/ul><ul><li>Ignoring the two extremely speculative Tanzania-based resources, most helium reserves are lowly-proven &amp; small, yet investors are willing to pay <em>large<\/em> multiples for them.<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>If Renergen\u2019s reserve (which is proven and now producing) is valued on an equivalent basis, the stock would <em>multiples<\/em> of its current price. Hence, we believe, the Nasdaq listing\u2026<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Ignoring peers &amp; the huge relative value in the stock, we see Renergen\u2019s fair value at c.6233cps (previously: 6700cps) and 12m TP c.7,347cps (previously: 8000cps).<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-9aa6a1de-3384-4832-b5dd-117fafc14228\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/Renergen_Ad-Hoc_1-February-2023.pdf\">Renergen Ad Hoc Note &#8211; 1 February 2023<\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2023\/01\/Renergen_Ad-Hoc_1-February-2023.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-9aa6a1de-3384-4832-b5dd-117fafc14228\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: REN \u2013 Market Cap: R3.9bn \u2013 PE: -108x \u2013 DY: 0.0% Updates: Phase One now producing both LNG and helium Valuation: Either peers expensive or REN (very) cheap<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[100],"tags":[],"class_list":["post-430","post","type-post","status-publish","format-standard","hentry","category-renergen-ren"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=430"}],"version-history":[{"count":1,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/430\/revisions"}],"predecessor-version":[{"id":433,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/430\/revisions\/433"}],"wp:attachment":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}