RENERGEN’s share price jumped 7.7% to R14 on Friday after it released its inaugural results since listing on AltX last year for the 14 months to end-February .
The company, which describes itself as the first alternative energy company to list on the JSE, had not generated any revenue in the reporting period, but said it started earning income in May.
Renergen, among the first companies to list under the JSE’s new special purpose acquisition company (spac) rules, reported an accumulated loss of R25.3m.
But its total assets exceeded total liabilities by R90.9m and the “ability of the company to continue as a going concern is not in question as it remains liquid and solvent”, auditors Grant Thornton said in the financial statement.
Renergen acquired its first viable asset, Tetra 4, in November for R5m in cash and 70-million shares in a deal valued at R650m.
Tetra 4 owned a 187,000ha natural gasfield in Virginia, near Welkom, with proven reserves of 25-billion cubic feet of natural gas and helium as the first and only onshore petroleum and natural gas right in SA, CEO Stefano Marani said in the results statement.
“Helium, despite being the second most abundant gas, is relatively scarce and tends to be found trapped with natural gas in relatively low concentrations, typically up to 1% by volume of the gas released. The Free State helium and natural gasfield, however, enjoys concentrations of up to 4% by volume.
“Linde Group’s hi-tech extraction technology will separate helium from natural gas through a single system utilising a patented processing plant which purifies, compresses, liquefies and stores the helium, ready for distribution to customers. The helium plant, which will be designed and delivered by Linde Engineering, is expected to commence operations in two years,” Marani said.
Besides the Free State gasfield, Renergen and two other parties jointly entered into an investment for a hydro-electric scheme in Côte d’Ivoire. The feasibility stage of the project is nearing its completion.