The natural gas and helium business certainly knows how to work a crowd. With an investor relations strategy that keeps Renergen at the forefront of the retail investor revolution, the company has dished up perhaps its most colourful announcement to-date.
There's a Delaware company. There's a 19-year sale agreement that doesn't actually commit the purchaser to anything. There's a famous survivor of a terrible boating accident. That's not all folks - there's even a blockchain solution that will be provided by Purple Group!
The idea behind all this pomp and ceremony is to create a spot market for helium, which would allow Renergen to sell helium at a spot price rather than negotiated prices under supply agreements. It's clearly an attempt to raise cash in the short-term as well, with pricing incentives for Argonon (the Delaware company that will create the spot market) in place until 30 November 2021. If this works, the cash will be used for further drilling at the Virginia Gas Project.
The blockchain technology will be used to track and manage the helium units as they are traded.
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