It’s official, Renergen has officially started producing liquid helium. This comes after the company successfully raised approximately A$18.3 million through a placement offer to Ivanhoe.
Renergen is a gas exploration company exploring the South African Free State province for liquefied natural gas (LNG). The company estimates that these helium reserves could be worth $100 billion.
On Monday, the explorer announced that its helium plant will be in operation and will start producing liquid helium. The news comes at a time when economists have forecast a shortage of helium. With a limited global supply, this positions Renergen well for potential long-term growth.
The stock surged 9% with the announcement, receiving positive sentiments from investors. According to Stefano Marani, CEO of Renergen: "When we were delayed, it left room for rumours and speculation that the helium module wouldn’t produce (for many reasons). Turning it on finally put paid to these rumours."
Having the helium plant in operation and producing liquid helium is a truly spectacular achievement by the team, who went above and beyond to achieve such a major and critical milestone. All components of the Phase 1 plant are now in operation.
Renergen CDI
He went on to say that the news brings "Lots of emotions. Relief it finally arrived, disappointed it is over, vindicated that we did it, and tired after 2022. It is a bit like the feeling after you write your last exam in matric and realise that while you are happy, you aren’t as happy as you thought you would be as that journey is over and you are about to start something new."
Helium is not produced in many countries, and this production makes South Africa one of only eight helium producers, globally! In Addition, the company has a unique way of extracting the gas; this is by, “drilling just into that giant fracture where the gas is, and then the gas escapes naturally with no stimulation at all”, the CEO said.
Renergen ended its quarter by November 2022 with a cash balance of A$3.58M.
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