Daily Maverick
Dailymaverick logo

Business Maverick

Business Maverick, South Africa, World

Renergen starts delivering on helium promises - share price soars 72%

Renergen starts delivering on helium promises - share price soars 72%
Lindsey Schutters
By Lindsey Schutters
18 Mar 2025
Facebook
3
Renergen’s share price surged dramatically following last week’s announcement that it had finally shipped commercial liquid helium.

There were no Friday the 13th fears for Renergen investors in March – mostly because the second Friday of the month fell on the 14th, but also because the once darling of the critical element market finally filled a container with precious helium. This moment arrived after years of missed deadlines.

The company's share price soared 72% on the news, shifting from R5.10 on Thursday, 13 March to close at R8.75 yesterday afternoon.

The milestone comes at a crucial time for Renergen, which has been navigating both operational challenges and legal hurdles, including an ongoing courtroom battle with Springbok Solar over land-use rights that has threatened to cast a shadow over the company’s ambitious growth plans which will be funded by the upcoming Nasdaq IPO. 

Speaking exclusively to Daily Maverick, Renergen CEO Stefano Marani addressed recent developments and future plans: “We are now focused on increasing production to nameplate capacity, which will take place in due course. We aren’t ready to share timelines, but will do so when appropriate.”

Business as usual


When questioned about potential concerns regarding US-South Africa trade relations affecting the company’s export plans, Marani appeared unconcerned.

 “Regarding US/SA relations, with the US as South Africa’s second-biggest trading partner, there are many other companies exporting to the US and in much larger values than we ever would. As far as we are aware, no disruption to such trade has taken place.”

Helium prices reached record highs globally due to supply shortages, which should count in the company’s favour for continued dealings across the pond.

Renergen’s Virginia Gas Project, which boasts helium concentrations as high as 12% with a field average of 3.4%, positions the company as a potentially significant player in the global helium market.

Making the market happy 


The breakthrough coincides with a major shift in Renergen’s shareholder structure, with Mazi Asset Management recently acquiring a 13.53% stake to become the company’s largest shareholder. 

While an administrative delay resulted in late notification of the substantial shareholding, Renergen has since filed the requisite notices with the Takeover Regulation Panel. 

Marthinus Malan, director and radiologist at Maine Radiology, told Daily Maverick about the importance of helium in the medical industry. 

“I follow helium economics because it’s crucial for our MRI machines with shortages worldwide,” he said.

“I’m very positive and excited about the helium prospect and the positive impact for our country which could give more patients access to advanced MRI imaging.” 

Righting the financial ship 


The company’s financial position remains a point of focus for investors.

As of December 2024, Renergen reported cash and cash equivalents of R23.152-million, with a US$7-million unsecured convertible debenture agreement with AIRSOL SRL maturing at the end of February. 

The Centre for Environmental Rights has also raised concerns about the financial and environmental sustainability of the company’s gas projects, arguing that they “underestimate their environmental and social impact on local communities who reap few, if any, benefits or new lasting jobs”. 

Much of Renergen’s future growth strategy hinges on a planned Nasdaq IPO, which the company believes will raise about R2.9-billion ($150-million).

While shareholder approval for the share issuance was obtained in April 2023, the listing remains “dependent on market conditions” and subject to regulatory approvals.

For now, investors appear to be celebrating the helium sales milestone. 

Whether this marks the beginning of a sustained turnaround for Renergen remains to be seen, but the company’s entrance into the commercial helium market represents a significant step forward in its evolution from explorer to producer. DM

Categories:

Tags: