Renergen defends its financial position against social media claims

“There has never been property ownership through the Standard Bank financing,” Renergen said via email, describing the claim as misinformation circulating online. “The SBSA Loan is secured by a third-ranking pledge of Tetra4’s assets and shares held by Renergen in Tetra4, and further by Mr Nicholas Mitchell and Mr Stefano Marani pledging shares in Renergen as security.”

There is truth to claims that Renergen breached several loan covenants as at 28 February 2025, involving facilities from the Development Finance Corporation (DFC), Industrial Development Corporation (IDC), and Standard Bank South Africa (SBSA). However, as Renergen pointed out in a response to Daily Maverick, these defaults were temporary and resolved shortly after the reporting period.



As detailed in its preliminary financial statements released on 30 April 2025: note eight of the report discloses that Renergen “did not meet certain loan covenants as at 29 February 2024”, which included the required asset cover ratio for a key loan facility.

Although the company did not consider these breaches to have a material impact on its going concern status, it noted that the lenders “have provided waivers subsequent to period end,” which is confirmed in note 18.

Importantly, Renergen stresses that these waivers “effectively addressed the immediate concern”, and no creditors have called in loans or taken possession of assets.

Proof is in the production pudding

Contrary to claims that the company is far off its production goals, Renergen’s figures show significant progress:

• Liquefied natural gas (LNG) production rose 70% year-on-year to 4,885 tonnes.


• LNG sales increased 74.2% to 4,633 tonnes.


• Liquid helium (LHe) commissioning was completed in the second quarter of the current financial year.


• Liquid helium sales began on 14 March 2025, shortly after the reporting period.

Despite this, costs associated with commissioning the helium train – without immediate helium revenue – contributed to a deeper annual loss. Renergen reported a R236-million loss after tax and a gross loss of R28-million, down from a R10-million gross profit the year before. Revenue, however, increased by 79.7% to R52-million, largely due to LNG sales.

The company chalks the larger loss up to high depreciation, rising input costs and the timing mismatch of helium revenue recognition.

Litigation risk not imminent

Concerns also remain around the unresolved litigation with Molopo Energy, which alleges that Renergen’s sale of a 5.5% stake in Tetra4 triggered a loan acceleration. The company disputes this, saying that even in a worst-case scenario, the liability would be limited to a R50-million repayment.

Looking ahead, Renergen is banking on additional funding. It has secured a $10-million inflow in April 2025 from an undisclosed third party, with the potential for a further $20-million. It is also pursuing a Nasdaq IPO aimed at raising R2.9-billion ($150-million) and expects to finalise a $795-million loan package from the DFC and SBSA – part of which will refinance existing debt.

Strained, not sinking

Renergen is under pressure, there’s no denying that. Losses have widened, debt covenant breaches legitimately occurred, and the success of its financial restructuring is wholly reliant on external funding and market confidence. But the bright spots of its operational progress and continued lender support suggest a company navigating the turbulence typical of complex energy infrastructure roll-outs.

The narrative of “serious trouble” may overstate the case. Investors would do better to track helium and LNG output in the months ahead – as well as progress toward the planned IPO – to assess whether Renergen can turn the corner from startup stress to stable operation. DM