CEO on Renergen's stock slump: Helium producer's 34% share price drop caused by deadline miss

Renergen’s story about turning a Free State helium and natural gas deposit into a massive profit generator attracted a horde of retail investor fans. But in recent months, Renergen’s share price has fallen 34% and at its current R27, is a world away from respected small cap analyst Keith McLachlan’s R67 valuation. The stock returned to earth after its pilot plant’s production deadline was missed - first because of Covid-lockdown related delays, then by a faulty oil heating system. CEO Stefano Marani has also had to deal with a cold shoulder from controversial mining company Ivanhoe, and leaks in Australia that aborted a capital raising exercise. On the upside, he reckons the glitches have all been dealt with and expects the pilot plant to produce its first helium soon (“not months”) - triggering funding of a massive $1bn commercial plant (half via the US government) which will potentially transform the company. Stefano spoke to Alec Hogg of BizNews. Learn more about your ad choices. Visit megaphone.fm/adchoices