Renergen (ASX:RLT) lists on ASX


by Jessica Amir

Renergen Limited (ASX:RLT) CEO Stefano Marani provides an update on the company's key helium project in South Africa and exploration program following its listing on the ASX.

Jessica Amir: Thanks for tuning into the Finance News Network. My name is Jessica Amir at the ASX with just listed Renergen (ASX:RLT). The CEO, Stefano Marani is with me now. Thank you so much.

Stefano Marani: Thank you very much. Thank you for being here.

Jessica Amir: And congratulations on your success. You came onto the market at a premium, 86 cents. Well done. For those who are unfamiliar, just tell us how much you raised.

Stefano Marani: So the transaction was priced at 80 cents. Obviously, as you mentioned, the first trade came off at 86 cents. I believe that a little earlier, traded all the way up to a dollar. I'm not sure where it is now, but no doubt, I'll be checking the prices. We came to the market originally looking for five million. We ended up with orders of around 13 million, and ended up raising 10 million. So all in all, a very successful transaction. And for all of those that didn't manage to get in at the IPO, obviously looking forward to having them form part of the share register in the secondary market. So an exciting day for the company.

Jessica Amir: And Stefano, for those that are new to the company, just tell investors what you do.

Stefano Marani: So we are an emerging LNG and helium producer. One of the very few helium projects in the world and one of the very few abilities to get any kind of exposure to that commodity. We've got a production right in South Africa, the only on-shore petroleum production right in the country. We've got proven gas reserves and proven helium reserves with some of the richest grades of helium ever seen in the world, with some wells presenting helium of up to 11 per cent.

Jessica Amir: And now to the funds that were raised from the listing. Just remind us, how will those be utilised?

Stefano Marani: The project itself is already funded in terms of the construction of the liquifiers. The proceeds from the IPO are for the really exciting part of the projects, which we see as being development of a sandstone field that we discovered. And this is where the helium is at concentrations of about 11 per cent. It's a particularly large sandstone trap with very good indications of positive geology for a lot of gas. So we'll start drilling that now and see what results come out of it.

Jessica Amir: And Stefano, you've spoken about the scarcity of helium and also your relationship and backing from the US government's body OPIC. So can we assume that the helium will be going to the US?

Stefano Marani: So Phase 1 involves the liquefaction of a small amount of helium. We see this as being the pilot project. And that helium has already been pre-sold to a listed entity in the US called Linde (NYSE:LIN), which is originally a German company that then merged with Praxair. So being an American company, that all forms part of the transaction with the OPEC, and yes, we are delivering helium in the first phase over to an American company.

Jessica Amir: And can you add any more information to the Linde relationship? Is that likely to increase capacity in the future?

Stefano Marani: Both parties are committed to that. But a lot of it obviously depends on the exploration now of the sandstone. And so, once we've got the results, hopefully a little later this year, we'll see just how big the next phase of the project is.

Jessica Amir: And Stefano, would you mind just telling us about your business model and really the first mover advantage?

Stefano Marani: Yes. So as I alluded to, we have the first on-shore petroleum right in the country. And this means that by the time that our plant goes live, we will be the first commercial producer of LNG in South Africa. And this, we really see as giving us a competitive advantage for the LNG for diesel substitution market. The business plan is quite simple. It's a rollout of several filling stations to provide LNG for heavy trucks, and we'd use that to substitute diesel, which not only has a cost benefit to the user but also a climate benefit in a massive reduction in carbon dioxide emissions.

Jessica Amir: And just lastly, before we let you go, anything else you wanted to leave with investors today?

Stefano Marani: A massive thank you to yourselves for being here and to all of the investors and generally all of the Australians and the ASX for making all of this possible. It's a privilege to be here. And looking forward to the road ahead with ASX as Renergen's (ASX:RLT) new home.

Jessica Amir: Yeah, absolutely. And congratulations again on your success. We're looking forward to seeing you grow. Stefano Marani, thank you so much.

Stefano Marani: Thank you very much.


Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.