Renergen has not entered into business rescue discussions
Renergen has told shareholders that it has not entered any business rescue discussions and that it can draw down on funding to the extent required.
In the first two weeks of 2025, Renergen’s share price plummeted by 35% and hit all-time lows as investors lost trust in the company.
Renergen’s latest quarterly update showed that it was using money faster than it could generate, placing it under severe pressure.
After burning through all of its borrowed funds, it received a R550 million investment from a black empowerment company at the beginning of 2024.
Since then, for the 9-month 2024 operating period, it has only received R42 million in cash from customers while burning through R145 million from operating activities.
Additionally, it used R114.5 million in investing activities spent on property plant and equipment and explorations costs and R231 million to pay off debt.
In its last annual report, Renergen reported that it had a total interest-bearing debt of R1.24 billion.
After less than a year, Renergen is left with only R23 million in cash from the R550 million it received from its BBBEE investor and is looking for more money.
Renergen revealed that it is working closely with lenders and investors to cover its short-term liquidity (cash) needs.
It is clear that Renergen is under severe financial strain and that it needs an urgent capital injection to fund its operations.
Prominent analysts, including David Shapiro from Sasfin Securities, raised questions about Renergen’s chances of success.
Shapiro said he wished Renergen CEO Stefano Marani the best but could not see Renergen making it and would not advise people to buy the stock.
Devin Shutte, head of investment at The Robert Group, said Renergen had no margin for error.
“There is very little room to breathe at this stage. You just don’t see the talk translate into action,” he said.
Renergen statement on share price volatility

On Friday, 10 January 2025, Renergen releases a statement regarding the company’s share price volatility.
It highlighted that Phase 1 of its Virginia plant was producing liquefied natural gas (LNG) from its wells and was selling it to its customers.
It added that it was liquifying pure helium sourced from its wells. “We entrain approximately 75 kg per day of helium into the system,” it said.
Renergen said it will increase this capacity toward nameplate as additional wells are tied in and operating efficiency is gained.
It added that the cooling of the helium Iso-container remains ongoing. “During this process, pure liquid helium produced from our wells is used to cool down the container,” it said.
It said it could not forecast when the container will reach the required temperature to maintain liquid in the container.
“The reason for an extended cool-down of this container is that our facility is currently operating below nameplate capacity,” Renergen said.
It said its liquid helium achieves purity of a minimum of 99.999%, as verified by two independent facilities.
These two facilities are NECSA Laboratories, a subsidiary of NECSA South African Nuclear Energy Corporation, and Air Products.
It said it was engaging with various parties to increase the number of wells feeding the plant to get the Phase 1 plant to nameplate capacity.
“These discussions are progressing well, with suppliers looking to entrench themselves further into the business with Phase 2 in mind,” it said.
Renergen added that it could draw down on funding to the extent required and had not entered into any business rescue discussions.
Renergen cautions shareholders against making investment decisions based on speculation and suggests they should instead base their decisions on formal communication.