South Africa: JSE Market Notes - Renergen Keeps the Hype Coming


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.

Transnet letting the team down

Sadly, coal business Thungela has highlighted that rail performance at Transnet Freight Rail...

AllAfrica publishes around 700 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.