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Provisional Consolidated Annual Financial Results for the Year Ended 28 February 2019
RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
Share code: REN ISIN: ZAE000202610
(“Renergen” or “the Company” or “the Group”)
PROVISIONAL CONSOLIDATED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2019
About Renergen
Renergen is an integrated alternative and renewable energy business that invests in early stage energy projects across
Africa and emerging markets. Through our investment in Tetra4, we benefit from the first and currently only onshore
petroleum production right in South Africa, complimented by an environmental authorisation which enables Tetra4 to
commence full-scale production and take advantage of its first mover advantage in the local market.
COMMENTARY
The Company performed well, despite the macro-economic climate prevalent in South Africa which presented adverse
operating conditions. Nationally the economy has faced significant head-winds ahead of the national elections, with
many investors opting to delay any investment decisions until after the elections. A volatile Rand and Brent Crude Oil
price has seen local fuel prices add to consumers’ woes. Tensions between the US and China had further
consequences in that foreign investors were reluctant to invest in Emerging Markets generally, all of which lead to
difficult operating conditions.
The New Plant Project did however benefit from two major developments in its favour. Firstly, the Bureau of Land
Management in the United States, a strategic helium reserve in Texas supplying a significant portion of the world’s
helium, announced earlier in 2018 that under the Helium Stewardship Act of 2013 that its helium reserves had dropped
to a level which meant it would host a final auction in August 2018, and thereafter would cease commercial supply.
The US Department of Interior on the 18th of May 2018 also then declared helium as one of the most critical elements
to US National Security, which then saw crude helium prices soar over 135% from the previous year and resulted in
significant international interest in Renergen’s New Plant Project which enjoys concentrations of helium far above other
helium producers. The second development was higher crude oil prices, which lead to an increase in margin on the
pilot plant which ultimately resulted in the Company showing its first gross profit for a semi-annual period, ending
August 2018.
The most significant milestone achieved this year was the funding package from the United States government through
its investment arm, the Overseas Private Investment Corporation (or OPIC) for US$ 40 million. The funding was hinged
primarily on the need to bring new helium sources online, which has benefited the Company greatly.
The Company concluded its capital raise by undertaking an Initial Public Offering on the Australian Stock Exchange in
May 2019. The Company will list on the Australian Stock Exchange in June 2019, an offering which was met with great
enthusiasm, being more than two times oversubscribed, amongst investors interested in gaining exposure to helium
as a commodity. We feel that this development will increase the Company’s investor pool and provide additional
sources of capital.
The Company signed new offtake agreements for liquefied natural gas with customers and has proven the viability of
the New Plant, with the project commencing full operations by the end of March 2021.
The Directors are highly enthusiastic on the Company’s prospects going into the new financial year, with strong
financial support and good prospects moving forward.
A full version of the Annual Financial Statements for the year ended 28 February 2019 will be made available on the
Renergen website
https://www.renergen.co.za/results-and-reporting/
Email investor queries to investorrelations@renergen.co.za.
Financial review
- Revenue increased by 3% to R2.99 million (February 2018: R2.89 million). The increase is as a result of a higher
diesel price following a weaker Rand and higher oil prices.
- Cost of sales has decreased by 9% to R3.2million (February 2018: R3.5million) as a result of improved cost
efficiencies.
- Capital raised in preparation of the planned pipeline construction, this resulted in an increase in the cash balance
from 28 February 2018.
- R9.5 million spent on plant, machinery and equipment and engineering of Tetra4’s Virginia operating plant
expansion.
- R3.8 million spent on gas exploration.
- A provision of R5.8 million has been raised for commitment and administration fees incurred on the IDC funding
agreement.
- 500 convertible notes at AUD 1000 per note were issued with an 18-month term.
Changes to the Board of Directors
Following the successful rights issue, the Board welcomes Francois Olivier to the Board as a non-executive director.
Francois has 16 years of investment research and portfolio management experience, six years of which were spent
in the USA. Francois is a Chartered Accountant and CFA Charter holder.
In anticipation of the ASX listing, the Board decided it was necessary to also appoint Dr David King to the Board as
a non-executive director, effective 4 June 2019. David was a founder and director of Sapex Ltd, Gas2Grid Ltd and
Eastern Star Gas Ltd. He holds an MSc in Geophysics from Imperial College, London, and a PhD in Seismology
from the Australian National University, Canberra. He has substantial natural resource related experience.
We believe these appointments add a new dimension to our Board and will aid the Executive team in developing
the company strategy in order to unlock returns for all of our shareholders.
Provisional Consolidated Statement of Financial Position
The statement of financial position of the Group as at 28 February 2019 are set out below:
Audited Audited
Figures in R'000 Notes 28 February 2019 28 February 2018
Assets
Non - Current Assets
Property Plant and Equipment 37 757 32 615
Intangible Assets 5 70 494 65 838
Deferred tax asset 12 243 8 671
Restricted cash 2 178 1 632
Total non-current assets 122 672 108 756
Current Assets
Trade and other receivables 4 482 2 459
Cash and cash equivalents 97 956 3 037
Total current assets 102 438 5 496
Total Assets 225 110 114 252
Equity and Liabilities
Equity
Stated capital 8 301 277 161 065
Accumulated loss (121 091) (80 231)
Share based payment reserve 448 114
Equity attributable to parent 180 634 80 948
Non-controlling interest (16 401) (12 285)
Total Equity 164 233 68 663
Liabilities
Non-Current Liabilities
Financial liabilities 9 39 647 30 545
Finance lease obligation 208 511
Provisions 9 829 3 100
Total non-current liabilities 49 684 34 156
Current Liabilities
Trade and other payables 10 855 11 167
Finance lease obligation 338 266
Total Current Liabilities 11 193 11 433
Total Liabilities 60 877 45 589
Total Equity and Liabilities 225 110 114 252
Net asset value per share
(cents) 164.01 84.73
Tangible net asset value per
share (cents) 93.61 3.49
Provisional Consolidated Statement of Profit or Loss and Other Comprehensive Income
The statement of profit or loss and other comprehensive income of the Group for the audited 12-month period 28
February 2019 are set out below:
Audited Audited
Figures in R'000 Notes 28 February 2019 28 February 2018
Revenue 2 987 2 885
Cost of sales (3 197) (3 483)
Gross loss (210) (598)
Other income 851 59
Share - based payments (334) (114)
Impairment (1 295) (12 245)
Operating expenses 6 (45 026) (31 912)
Profit on disposal of business - 4 708
Operating loss (46 014) (40 102)
Interest Income 1 604 632
(3
Interest expense and imputed interest (4 138) 567)
Total loss before tax (48 548) (43 037)
Taxation 3 572 2 436
Total loss after tax (44 976) (40 601)
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation reserve - 1 348
Foreign currency translated to OCI - (4 737)
Total Comprehensive loss for the period (44 976) (43 990)
Total loss attributable to:
Owners of the parent (40 860) (37 680)
Non-controlling interest (4 116) (2 921)
(40
(44 976) 601)
Total comprehensive loss attributable to:
Owners of the parent (40 860) (41 069)
Non- controlling interest (4 116) (2 921)
(44 976) (43 990)
Loss per share 12
Basic loss per share (cents) (47.03) (47.10)
Diluted loss per ordinary share (cents) (47.03) (47.05)
Weighted average number of shares (‘000) 86 889 80 002
Number of shares in issue (‘000) 100 135 81 035
Provisional Consolidated Statement of Changes in Equity
The statement of changes in equity of the Group for the audited 12- month period ended 28 February 2019 are set out
below:
Foreign Share
Accumu- Currency based Equity Non-
Figures in Stated
lated Trans- payment Attributable Controlling Total Equity
R'000 Capital
Loss lation reserve to parent interest
Reserve
Balance at 01
March 2017 137 585 (42 551) 3 389 - 98 423 (9 262) 89 161
Share issue
26 000 - - - 26 000 - 26 000
Share issue
costs (2 520) - - - (2 520) - (2 520)
Share based
payment 114 114
- - 114 -
reserve -
Total loss
after tax - (37 680) - - (37 680) (2 921) (40 601)
Other
Comprehensiv 1 348 1 348 - 1 348
-
e income -
Foreign
currency
reserve -
realised on
disposal of
business- -
(4 737) (4 737) - (4 737)
transfer to
other
comprehensiv
e income -
Non-
controlling -
interest at
- (102) (102)
disposal - - -
Mega Power
Renewables -
Balance at 28
February
-
2018 161 065 (80 231) 114 80 948 (12 285) 68 663
Adjustment on
initial -
application of -
- - - -
IFRS 9 and
IFRS 15 -
Restated
balance as at
01 March -
2018 161 065 (80 231) 114 80 948 (12 285) 68 663
Share issue
146 760 - - - 146 760 - 146 760
Share issue
costs (6 548) - - - (6 548) - (6 548)
Share based
payment 334
- - 334 - 334
reserve -
Total loss
-
after tax - (40 860) - (40 860) (4 116) (44 976)
Balance at 28
February
2019 301 277 (121 091) - 448 180 634 (16 401) 164 233
Provisional Consolidated Statement of Cash Flows
The statement of cash flow of the Group for the audited 12- month period ended 28 February 2019 are set out below:
Audited Audited
Figures in R'000 Notes 28 February 2019 28 February 2018
Cash flows from operating activities
Cash used in operations 7 (38 287) (19 036)
Interest Income 1 604 632
Interest expense (185) (35)
Net cash outflow from operating activities (36 868) (18 439)
Acquisition of property, plant and equipment (9 587) (13 662)
Acquisition of intangible assets (3 756) (199)
Net cash outflow from investing activities (13 343) (13 861)
Proceeds on share issue 146 760 26 000
Share issue costs (6 548) (2 520)
Increase in borrowings 5 149 -
Finance lease capital re-payments (231) (210)
Finance lease proceeds - 768
Net cash inflow from financing activities 145 130 24 038
Total cash movement for the period 94 919 (8 262)
Cash at the beginning of the period 3 037 11 299
Total cash at the end of the period 97 956 3 037
NOTES TO THE FINANCIAL STATEMENTS
The notes to the financial information as at 28 February 2019 are set out below:
1. Basis of preparation
The provisional consolidated financial statements for the year ended 28 February 2019 have been prepared and
presented in accordance with the requirements of the JSE Limited (“JSE Listings Requirements”) and the
requirements of the South African Companies Act 71 of 2008, as amended. The JSE Listings Requirements require
summary reports to be prepared in accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (“IFRS”) and the SAICA Financial Reporting Guides
issued by the Accounting Practices Committee and Financial Reporting Pronouncements issued by Financial
Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim
Financial Reporting.
These provisional consolidated financial statements are extracted from audited financial statements but are not
themselves audited. The audited Group consolidated financial statements are available for inspection at the
Company registered office. The directors take full responsibility for the preparation of the provisional report and the
financial information has been correctly extracted from the underlying annual financial statements.
These provisional consolidated financial statements have been prepared under the supervision of Ms FH Ravele
CA(SA), the Group’s Chief Financial Officer.
Auditor’s Opinion
The provisional consolidated financial statements have been derived from the Group’s audited consolidated annual
financial statements which have been audited by Jacques Barradas of BDO South Africa Incorporated. The auditor,
BDO, has issued its unmodified opinion on the Group’s audited consolidated annual financial statements for the
year ended 28 February 2019. The audit was conducted in accordance with International Standards on Auditing.
BDO has issued an unmodified audit opinion on the Group’s audited consolidated annual financial statements. This
auditor’s report does not necessarily report on all the information contained in this announcement. A copy of the
auditor’s report on the consolidated annual financial statements is available for inspection at the Company’s
registered office, together with the financial statements identified in the respective auditor’s reports. Any reference
to future financial performance included in this announcement has not been reviewed or reported on by the
Company’s auditor.
2. Accounting policies
All accounting policies applied in these provisional consolidated financial statements are in terms of IFRS and are
consistent with those applied by the Group in its consolidated financial statements for the year ended 28 February
2018, except for new standards related to the application of IFRS 15, IFRS 9 and IFRS 16, which are described in
note 4.
3. Areas of significant judgements
In preparing these provisional consolidated financial statements, management has made judgements and estimates
that affect the application of accounting policies and the reported amounts of assets and liabilities, income and
expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group’s accounting policies and the key sources
of estimation uncertainty were the same as those described in the annual financial statements for year ended 28
February 2018, except for new significant judgements and key sources of estimation uncertainty related to the
application of IFRS 15 and IFRS 9, which are described in note 4.
4. Changes in accounting policies
4.1. Standards and Interpretations effective and adopted
4.1.1. IFRS 9 (Financial Instruments)
IFRS 9 was effective for the current period. As permitted by IFRS 9, Renergen Group has not restated comparative
information for 2018 for financial instruments in the scope of IFRS 9. Therefore, the comparative information for
2018 is reported under IAS 39 is not comparable to the information presented for 2019. There is however, no impact
as there were no changes in the classification and measurement of financial assets from IFRS 9 on the Provisional
Consolidated Financial Statements and thus no transition adjustments have been made to the opening retained
earnings as at the date of initial application.
IFRS 9 modifies the classification and measurement of certain classes of financial assets and liabilities, reflecting
the business model in which assets are managed and their cash flow characteristics. Financial liabilities continue
to be measured at either fair value through profit and loss or amortised cost. In addition, IFRS 9 introduced an
expected credit loss ("ECL") impairment model, which means that the anticipated credit losses as opposed to
incurred credit losses are recognised resulting in earlier recognition of impairments. All financial assets were
previously and are still carried at amortised cost.
4.1.2. IFRS 15 (Revenue from Contracts with Customers)
Application of the standard is mandatory for reporting periods beginning on or after 1 January 2018. This standard
provides a single, principles-based five-step model for the determination and recognition of revenue to be applied
to all contracts with customers. It replaces in particular IAS 18 (Revenue) and has no impact as there was no
changes in the classification and measurement on the prior year and current year presentation of Renergen Group
results of consolidated statement of comprehensive income and financial position.
The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in
exchange for those goods or services.
The Group's revenue is derived from commodity sales, for which the point of recognition is dependent upon contract
sales term, the transfer of risks and rewards as defined by IAS 18 and the transfer of control as defined by IFRS
15 generally coincides with the fulfilment of performance obligations under the contract. As such, the adoption of
IFRS 15 has had no material impact in respect of timing and amount of revenue recognised by the Group and
accordingly prior period amounts were not restated and no transition adjustments have been made to the opening
retained earnings as at the date of initial application. The practical expedient has not been applied as the group
only has one contract with one customer.
IFRS 15 – Disaggregation
The impact of adopting IFRS 15, does not result in any further disaggregation of revenue as compared to the
segmental report of the financial statements.
4.2. Standards and Interpretations not yet effective
4.2.1. IFRS 16 Leases
IFRS 16 provides a comprehensive model for identification of lease arrangements and their treatment (on-balance
sheet) in the financial statements of both lessees and lessors. It supersedes IAS 17 Leases and its associated
interpretative guidance.
Under the new standard, a lessee is required to recognise the present value of the unavoidable lease payments as
a lease liability on the statement of financial position (including those currently classified as operating leases) with
a corresponding right of use asset. The unwind of the financial charge on the lease liability and amortisation of the
leased asset are recognised in the statement of income based on the implied interest rate and contract term
respectively. The Group's recognised assets and liabilities will increase and affect the presentation and timing of
related depreciation and interest charges in the consolidated statement of profit or loss and other comprehensive
Income. Upon adoption of IFRS 16, the most significant impact will be the present value of the operating lease
commitments (see note 33) being shown as a liability on the statement of financial position together with an asset
representing the right of use, which are unwound and amortised to profit or loss over time.
The Group will apply the modified retrospective approach. Under this approach, the Group will not restate amounts
previously reported and will apply the practical expedient to retain the classification of existing contracts as leases
under current accounting standards (i.e. IAS 17) instead of reassessing whether existing contracts are/or contain
a lease at the date of initial application provided these contracts are ending within 12 months of the date of initial
application.
As at 28 February 2019, the group did not have any non-cancellable operating lease commitments.
The group leases two office premises on an operating lease arrangement, one of which is a short-term lease which
expires within the first half of the new financial year (February 2020) with no intentions to renew. The expense will
be recognized on a straight-line basis in profit and loss. Management intends to renew its head office lease for an
additional three years in July 2019 the impact of the lease is approximately R 95 354 on profit or loss and the group
will recognize a right-of-use asset and a corresponding lease liability of approximately R 270 509.
The group leases vehicles on a finance lease basis, the new standard will have no material impact on these lease
arrangements.
The group will adopt the standard from the reporting period beginning 01 March 2019. The right of use for property
leases will be measured at the amount of lease liability on adoption (adjusted for prepaid or accrued lease
expenses) and any adjustment from the reversal of a straight-lining liability will be credited against the opening
retained earnings balance.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not
yet effective.
5. Intangible assets
Accumulated
Figures in R’000 Cost Amortisation Carrying Value
28 February 2019
Exploration and development costs 13 006 (32) 12 974
Molopo project mineral rights 57 479 - 57 479
Domain 41 - 41
Total 70 526 (32) 70 494
Comparatives
Accumulated
Figures in R’000 Cost Amortisation Impairment Carrying Value
28 February 2018
Exploration and development 9 250 (32) - 9 218
costs
Molopo project mineral rights 56 579 - - 56 579
Domain 41 - - 41
Côte d’Ivoire Hydroelectric 12 245 - (12 245) -
project
Total
78 115 (32) (12 245) 65 838
6. Operating Expenses
Figures in R’000 Audited 28 February 2019 Audited 28 February 2018
Consulting and advisory fees 18 573 12 177
Depreciation 1 165 803
Non-Executive Directors fees 1 470 1 339
Executive Directors Fees 8 019 6 040
Employee costs 3 073 3 460
Operating lease 983 964
Other Operating costs 11 743 7 129
45 026 31 912
7. Cash (used in) generated from operations
Figures in R’000 Audited 28 February 2019 Audited 28 February 2018
Loss before taxation (48 548) (43 037)
Adjustments for:
Depreciation 3 150 2 803
Amortisation - 19
Interest income (1 604) (632)
Finance costs 185 35
Imputed interest expense 3 953 3 532
Impairment loss 1 295 12 245
Share based payment expense 334 114
Allocation to restricted cash (555) (1 632)
Provision for IDC 5 829 -
Profit on sale of business - (4 708)
Expected cash proceeds on - 135
disposal of Mega Power
Renewables
Changes in working capital:
Trade and other receivables (2 015) 6 473
Trade and other receivables on - (266)
disposal of Mega Power
Trade and other payables (312) 5 883
(38 287) (19 036)
8. Stated Capital
Figures in R’000 Audited 28 February 2019 Audited 28 February 2018
Authorised
500 000 000 no par value shares 500 000 500 000
Reconciliation of number of
shares issued:
Opening balance 81 035 78 413
Issue of shares – ordinary shares 19 100 2 622
100 135 81 035
Reconciliation of issued stated
capital
Opening balance 161 065 137 585
Issue of shares – ordinary shares 146 760 26 000
issued for cash
Share issue costs (6 548) (2 520)
301 277 161 065
9. Financial liabilities
Figures in R’000 Audited 28 February 2019 Audited 28 February
2018
Held at amortised cost
Molopo Energy Limited 34 498 30 545
Convertible notes 5 149 -
39 647 30 545
The convertible notes carry a coupon rate of 15% per annum. 5% of the coupon rate is payable in cash quarterly
from issue date and 10% of the coupon rate is capitalised on the outstanding principal amount. A Noteholder may
any time elect to convert its Notes into Underlying Securities at a calculated conversion price by written notice to
the Company. If the listing date has occurred prior to the day of redemption and the listing price is greater than or
equal to AUD$1.25 then each Note will automatically convert into Underlying Securities by reference to the
Outstanding Amount of each Note based on the conversion price, with the Conversion Date being the Listing Date.
10. Segmental analysis
Renergen Limited has two operating segments. Renergen sold its investment in Mega Power Renewables on 23
February 2018, thus reducing the segments from three to two.
• Corporate Head Office
Corporate head office is a segment where all investment decisions are made. Renergen Limited is the investment
holding company focused on investing in prospective green projects. Green projects entail pursuing knowledge and
practices that can lead to more environmentally friendly and ecologically responsible decisions and lifestyles which
can help protect the environment and sustain its natural resources for current and future generations.
• Tetra4 (Pty) Ltd
Tetra4 explores, develops and sells compressed natural gas to the South African market. Natural gas is a renewable
resource, since it is produced by living microbial organisms.
• Mega Power Renewables
Mega Power Renewables is in Côte d’Ivoire. This segment is managing the development of a hydroelectric
project. Its functional currency is Euros. Mega Power Renewables was disposed of as at 28 February 2018.
10. Segmental analysis (Continued)
Analysis of reportable segments as at 28 February 2019 is set out below:
Figures in R'000 Corporate Tetra4 Total Consolidating Consolidated
Head Office Adjustments
Revenue 16 487 2 987 19 473 (16 487) 2 987
External - 2 987 2 987 - 2 987
Inter-segment 16 487 - 16 487 (16 487) -
Depreciation* and (713) (452) (1 165) - (1 165)
amortization
Interest income 1 484 120 1 604 - 1 604
Imputed interest - (3 953) (3 953) - (3 953)
Interest expense (185) - (185) - (185)
Taxation 306 3 266 3 572 - 3 572
Loss for the period (3 817) (41 159) (44 976) - (44 976)
Total Assets 885 172 124 740 1 009 912 (784 802) 225 110
Total liabilities 8 330 237 432 245 762 (184 885) 60 877
*Depreciation on plant and equipment of R1, 9million is included in cost of sales
Comparatives
Figures in Corporate Tetra4 Mega Power Total Consolidating Consolidat
R'000 Head Office Renewables Adjustments ed
28 February
2018
Revenue 8 600 2 885 - 11 485 (8 600) 2 885
External - 2 885 - 2 885 - 2 885
Inter-segment 8 600 - - 8 600 (8 600) -
Loss for the (11 392) (29 209) - (40 601) - (40 601)
period
Total Assets 744 363 104 993 266 849 622 (735 370) 114 252
Total liabilities 4 249 176 525 - 180 774 (135 185) 45 589
11. Contingent liabilities and commitments
a. Contingent liabilities
On 8 May 2019, the company released a prospectus for the Initial Public Offering (IPO) on the Australian Stock
Exchange. The company entered into various IPO listing costs agreements with various suppliers. The range that
the company plans on raising at IPO is between a minimum of AUD$ 5million and an oversubscription of AUD$
10million.
Costs to be paid at prospectus date contingent upon successful listing by the company range from R14million to
R18million.
There are no contingent liabilities in the Annual Financial Statements for 28 February 2019.
b. Commitments
The group is in the process of acquiring a CNG Daughter station in Virginia in the Free State province with a value
of R3,9 million. At the end of the reporting period, 90% of the value has been settled. Management expects that the
station will be ready for use in July 2019.
The board approved a capital spend of R512million for spend on the New Plant and drilling. The Group is yet to
enter into contractual agreements with suppliers for this capital spend.
12. Loss per share
Figures in R’000 Audited 28 February Audited 28 February
2019 2018
Basic loss
Loss from continuing operations attributable to equity (40 860) (37 680)
owners of the parent
Weighted average number of shares 86 889 80 002
Basic loss per share (cents) (47.03) (47.10)
Reconciliation of diluted loss
Basic loss (40 860) (37 680)
Weighted average number of shares 86 889 80 002
Diluted loss per share (cents) (47.03) (47.05)
Reconciliation of basic loss to headline loss
Basic loss attributable to equity owners of the parent (40 860) (37 680)
Profit on disposal of business - (4 708)
Impairment loss 1 295 12 245
Tax effects of disposal and impairment of fixed assets (363) -
Headline loss (39 928) (30 143)
Headline loss per share (cents) (45.95) (37.68)
Reconciliation of basic headline loss to diluted
headline loss
Headline loss (39 928) (30 143)
Adjustments - -
Diluted headline loss (39 928) (30 143)
Diluted weighted average number of shares 86 997 80 083
Diluted Headline loss per share (cents) (45.95) (37.64)
The basic loss per share is limited to the diluted loss per share as the convertible shares are antidilutive. This
limitation was not applied in the prior period, the impact was assessed to not be material and therefore prior period
figures have not been adjusted.
13. Events after the reporting period
Renergen released a SENS announcement on its latest independent reserve review on 24 April 2019, compiled by
MHA Petroleum Consultants LLC (“MHA”) from the United States of America in respect of the New Plant Project held
by Tetra4 indicating an increase in proven methane and helium reserves of 12.2% and 16.1% respectively since March
2018. Economic valuation was up 16.4% to R9.8 billion using a discount of 15% for proven and probable reserves
(2P). Ongoing work relating to shallow conventional “White Sandstone” discovered helium concentration are up 11%.
On 9 May 2019, the company released a SENS announcement, wherein it disclosed that it released the prospectus
for the Initial Public Offering (The Offer) on the Australian Stock Exchange on 8 May 2019. The Offer opened on 9 May
2019 to the Australian public and was available only to Australian and New Zealand residents accessing the website
within Australia or New Zealand.
On 29 May 2019, Renergen announced the completion of The Offer which raised A$10million with oversubscriptions
through the issue of 12.5million CHESS Depository Interests at a subscription price of A$0.80. Renergen also
announced the appointment of a new non-executive director, Dr David King, effective 4 June 2019.
The directors are not aware of any material events that occurred after the reporting period and up to the date of this
report.
14. Going concern
The provisional consolidated Financial Statements have been prepared assuming the Group will continue as a going
concern, which contemplates the realisation of assets and satisfaction of liabilities in the normal course of business
for the foreseeable future. The Group’s ability to achieve profitability is dependent on the capital spend of proceeds
raised from the currently underway capital raise. The Directors have reviewed the Group’s forecasts for the next
twelve months and are satisfied with the Group’s ability to continue as a going concern.
The Group has received a funding commitment of $40million from Overseas Private Investment Corporation to spend
towards the New Plant Project and has successfully completed a rights issue raising R125 million, as well as a
secondary listing on the Australian Stock Exchange wherein the Group raised an additional A$10 million. The
construction of the New Plant commences in the new financial year. Sales of Liquified Natural Gas (LNG) and Helium
(He) are expected to commence in financial year 2021. The Group has entered into off take agreements for the sale
of both LNG and He.
Johannesburg
31 May 2019
Designated Advisor
PSG Capital
CORPORATE INFORMATION
Country of incorporation and domicile South Africa
Company and registration number 2014/195093/06
JSE Share code REN
JSE ISIN ZAE000202610
Registered office First Floor
1 Bompas Road
Dunkeld West
2196
Nature of the business and principal activities Energy company focused on alternative and
renewable energy sectors in South Africa and sub-
Saharan Africa. The Company is listed on the JSE
Alternative Exchange (“AltX”) and in the process of
a secondary listing on the Australian Stock
Exchange
Directors Stefano Marani
Fulu Ravele
Nick Mitchell
Brett Kimber
Mbali Swana
Luigi Matteucci
Bane Maleke
Francois Olivier
Auditors BDO South Africa Inc.
Chartered Accountants (SA)
Registered Auditors
Company Secretary Acorim Proprietary Limited
Transfer secretaries Computershare Investor Services Proprietary
Limited
Designated adviser PSG Capital
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