Helium and natural gas producer Renergen expects its headline loss per share to narrow to 17.1c-22.6c for the year to end-February from a loss of 27.73c in 2022. This is an improvement of 18%-38%, it said.
Renergen subsidiary Tetra4 wholly owns the Virginia Gas Project in the Free State, which contains helium concentrations that are among the world’s highest. Renergen is in a development and exploration phase and is thus running at a loss. It sells helium to customers that include Ardagh Group (formerly Consol) and Italtile.
According to cash-flow statements that it must release as part of Australian listing requirements, Renergen sold R23.4m worth of helium and gas in the 12 months to end-February. Renergen holds a primary listing in Australia and a secondary listing on the JSE.
It is expected to produce 2,700 gigajoules of liquefied natural gas a day and 350kg of helium when it completes phase one of its development. The group is gearing up for phase two of its development, a more substantial project that is expected to produce at least 24,000GJ at an estimated cost of $800m-$900m.
Renergen is seeking another $750m in financing and hopes to list on the Nasdaq later this year. It had R55m left at the end of March for running costs, according to its cash-flow statements.
The share price has fallen almost 25% this year. It closed down 1.3% at R18.26 on the JSE on Wednesday.
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