{"id":295,"date":"2021-06-28T07:16:59","date_gmt":"2021-06-28T07:16:59","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=295"},"modified":"2021-06-28T07:17:03","modified_gmt":"2021-06-28T07:17:03","slug":"renergen-positive-developments","status":"publish","type":"post","link":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/?p=295","title":{"rendered":"Renergen &#8211; Positive Developments"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Share Code: REN \u2013 Market Cap: R2.4bn \u2013 PE: -55.6x \u2013 DY: 0.0%<\/strong><\/p>\n\n\n\n<div class=\"wp-block-file\"><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/06\/Renergen_Ad-Hoc-Note_28-June-2021.pdf\">Renergen Ad Hoc Note<\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/06\/Renergen_Ad-Hoc-Note_28-June-2021.pdf\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Discovery of Helium at Evander &amp; Other Wells; Pipeline Update<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Renergen has found world-class helium concentrations at the MDR1 (3.15%) and P007 (4.38%) wells along with intersecting gas at R2D2. These wells all either point towards a better\/larger resource and\/or higher well density potential (i.e. lower capex\/well) that incrementally adds upside to the Group\u2019s existing Phase I and II of its Virginia Gas Project.<\/li><li>Helium has now also been found at the Group\u2019s Evander Exploration Right prospect at 1.1% concentrations. While this is lower than Virginia, 1.1% is still a world-class concentration and adds a further 52,000 hectares of exploration rights to the Group\u2019s already exciting gas resource.<\/li><li>Finally, the Virginia Gas Project\u2019s pipeline has been completed and performance tested with very pleasing results (+7% <em>higher<\/em> than planned flow rate; 30% <em>less<\/em> power consumption) that should have positive operational and valuation impact.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Incremental Capital Raise Strongly Supported<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Renergen has placed c.5.6m shares (c.4.8% dilution to c.117.5m shares in issue) at c.1910cps (c.9.5% discount to the 30-day VWAP) with two key considerations to this placement:<\/li><li>It was quickly and fully subscribed, adding 3 South African and 9 Australian institutional investors, and, somewhat, derisking the likely Phase II capital raise through the process, &amp;<\/li><li>Funds will debottleneck the Group\u2019s exploration of the Virginia Project, Feasibility Studies for Phase II &amp; offer some working capital runway for existing operations.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Forecast, Valuation and Implied Return: Updated for Spot Changes<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Leaving our model unchanged and <em>only<\/em> updating it to reflect current spot prices (ZAR, Diesel, &amp; lower share price), we see REN\u2019s fair value as 4535cps (previously: 4978cps) and its 12m TP as 5330cps (previously: 5850cps).<\/li><\/ul>\n\n\n\n<div class=\"wp-block-file\"><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/06\/Renergen_Ad-Hoc-Note_28-June-2021-1.pdf\">Renergen Ad Hoc Note<\/a><a href=\"http:\/\/v7l6z8c7j6p.c.updraftclone.com\/wp-content\/uploads\/2021\/06\/Renergen_Ad-Hoc-Note_28-June-2021-1.pdf\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: REN \u2013 Market Cap: R2.4bn \u2013 PE: -55.6x \u2013 DY: 0.0% Discovery of Helium at Evander &amp; Other Wells; Pipeline Update Renergen has found world-class helium concentrations at the MDR1 (3.15%) and P007 (4.38%) wells along with intersecting gas at R2D2. These wells all either point towards a better\/larger resource and\/or higher well [&hellip;]<\/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":[127,128,101],"class_list":["post-295","post","type-post","status-publish","format-standard","hentry","category-renergen-ren","tag-gas","tag-lpg","tag-renergen"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=295"}],"version-history":[{"count":1,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/295\/revisions"}],"predecessor-version":[{"id":298,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/295\/revisions\/298"}],"wp:attachment":[{"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v7l6z8c7j6p.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}