To start the session, the Renergen share price was trading up 25% at $3.45 before correcting back down.

Renergen shares are on the move following a company announcement updating its flagship Virginia gas project in South Africa.

Here are the details.

Renergen increases reserves by over 600%

Renergen advised that after a recent successful drilling campaign, it commissioned a reserves and resources accreditation agency to "estimate the reserves and resources of methane and helium within the company's Virginia production area".

The estimate enabled Renergen to substantially upgrade its methane and helium reserves at the site.

The release notes that 1P helium reserves have increased by a mammoth 620% to 7.2Bcf and 1P methane reserves have increased by 427% to 215Bcf.

Judging from the the results, the estimate upgrade "highlights the exciting potential of Virginia to be a globally significant supplier of helium".

Immediately following the announcement, Renergen also released an investor presentation detailing the upgrade and some of the particulars of the Virginia site.

Investors have sent the Renergen share price flying on the back of the news this morning, solidifying their position in the natural gas and helium producer.

With natural gas prices approaching 10-year highs, and already surpassing 5-year highs, it stands to reason the company may benefit from the newfound resource capacity.

Without a doubt, Renergen management is ecstatic with the upgrade, noting it is a "major milestone for the company and confirms the Virginia project as a world class helium project".

What are management saying?

Speaking on the announcement, Renergen's CEO Stefano Marani said:

We have and continue to work towards ensuring Virginia is well-placed to supply helium into a growing and constrained market. Increasing our 1P helium reserves by over 600% since March 2019 is a great step forward in achieving this goal and importantly, highlights the enormous potential of Virginia to become a significant helium supplier to not only South Africa but globally as well. Additionally, an estimated 400 petajoules of methane at 2P also positions the Company exceedingly well to become an integral part of South Africa's energy mix.

Marani continued:

2021 has been an excellent year for Renergen, with several milestones achieved and we look forward to firmly ending the calendar year. 2022 is shaping up to be even more exciting as we commence production from the Phase 1 plant and begin generating revenue.

Renergen share price snapshot

It's been a year in the green for the Renergen share price, having climbed 168% in the past 12 months after rallying 215% since January 1.

These results have far outpaced the S&P/ASX 200 Index (ASX: XJO)'s climb of around 24% over the same time.

The post Here's why the Renergen (ASX:RLT) share price is soaring 21% today appeared first on The Motley Fool Australia.

That's a good bit better than the 1.3% gain posted by the All Ordinaries Index (ASX: XAO) at this same time.

Below we look at the quarterly activities report from the alternative and renewable energy company.

What results did Renergen report for the quarter?

The Renergen share price is on the rise after the company reported a 13% boost in revenues from the previous quarter.

While revenues were up, operating costs decreased 19% quarter on quarter, which the company partly attributed to the reversal of bonus provisions in place the prior year.

Along with other cost reductions, this resulted in a 15% decrease in losses for the quarter and in an improved cash position.

The company highlighted its position as a low-cost helium producer, saying it was "nearing positive earnings generation".

Over the quarter, Renergen drew the final tranche of its United States International Development Finance Corporation (DFC) loan. This added US$7.5 million (AUD$10.4 million) to its cash reserves.

The company is entering the final stages of construction and commissioning for its plant, reporting that gas gathering was completed. It also said that temporary power generators and a permanent substation were installed and connected during the final week of August.

Renergen expects commissioning to start in December 202. It is forecasting a turn-on date "before the end of 2023, with full production during 2024".

Renergen share price snapshot

The Renergen share price is up an impressive 90% over the past 12 months, compared to a gain of 27% posted by the All Ords.

Renergen's shares hit all-time highs of $2.75 on 12 April. That was likely driven by news that its Cryo-Vacc system could be used to transport temperature sensitive COVID-19 vaccines, keeping them at ultra-cold temperatures for up to 30 days without the need for outside power sources.

The post Why the Renergen (ASX:RLT) share price has charged higher today appeared first on The Motley Fool Australia.

At yesterday's market wrap, the helium and LNG producer's shares finished the day at $2.27.

Partnership agreement

Renergen shares could be on the move today after the company provided investors with a positive update.

According to this morning's release, Renergen advised it has entered into an agreement with DPD Laser for the supply of 110 Cryo-Vacc cases.

Established in 1999, DPD Laser is a leading South African express logistics company. The group specialises in time-sensitive courier services as well as road freight express delivery.

Under the deal, Renergen will sell its Cryo-Vacc cases at a fixed price using a combination of 3 different case sizes. The large case holds up to 2,400 vials, medium case up to 1,200 vials, and the smaller case up to 240 vials. Cases can be distributed to suit customer needs such as using the smaller case for pharmacies and medical clinics.

Renergen noted that the agreement has been signed ahead of the Phase II vaccination program for South Africa.

The deal is not expected to be material from a revenue perspective but represents another checkpoint passed by the company.

The Cryo-Vacc cases are expected to be delivered to DPD Laser towards the end of next month.

Words from management

Renergen CEO Stefano Marani touched on the company's progress, saying:

We believe the technology works, and as time progresses, we will continue to enhance and improve the Cryo-Vacc as we gain valuable data from people in the field using the product.

The analogy we see here is that version 12 of a smartphone was not the first version released; they got there over time. Cryo-Vacc will continue to evolve, and this is the exciting part as it becomes more flexible and useful in the field, which is the goal.

DPD Laser CEO Anton Visagie, added:

We have the ideal solution, storage and distribution, given the current uncertainty on which vaccines will be used at various vaccination points across South Africa.

Our technology can handle all three required temperatures of 2-8 degrees, -20 degrees and -70 degrees Celsius without being dependent on an external power supply for periods between 7 and 35 days.

About the Renergen share price

For most of 2020, the Renergen share price remained relatively flat until surging at the beginning of 2021. The company's shares have gained more than 120% year-to-date. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained a modest 77% over the same time frame.

The post The Renergen (ASX:RLT) share price is on watch today appeared first on The Motley Fool Australia.

The Renergen share price reached a high of $2.65 this morning, up 5% from its closing price yesterday. It has since dropped to $2.62 — still a 4% gain.

Let's look closer at this morning's news from Renergen.

Shareholder's delight

The company announced this morning that this financial year's loss per share and headline loss per share is expected to be significantly less than last financial year's.

Additionally, Renergen stated the loss per share and headline loss per share for the current financial year is expected to be between 27.89 cents and 37.47 cents. This represents a decrease in loss of between 21.8% and 41.8%.

The loss per share and headline loss per share for the half-year ending on 28 February 2020 was 47.92 cents.

Renergen said the previous financial year's loss per share and headline loss per share included one-off costs from debt and equity funding for the company's IPO on the ASX. 

Cryo-Vacc 

Renergen also began its quarterly activities report by declaring its Cryo-Vacc is currently awaiting clinical validation, with results due in a matter of days.

Cryo-Vacc enables vaccines to be transported at extremely low temperatures for up to 30 days without any power supply. Powered by hydrogen, it's lightweight and can transport 100 vaccine doses at temperatures of between -70°C and -150°C.  

Cryo-Vacc was only conceptualised in December 2020. Renergen is hoping to receive clinical validation will be granted and the product will be ready when South Africa's COVID-19 vaccination tender is announced.

The company has partnered with DPD Laser locally, which is using Cryo-Vacc to support its customers participating in the tender.

Renergen Quarterly activities and cashflow report

The company also published its quarterly activities report, within which it spoke of its successful helium mining activities.

Many of the company's mining activities have achieved their expected results or performed better than anticipated. Though, some of the company's activities have been affected by logics delays caused by COVID-19 lockdowns.

Renergen share price snapshot

The Renergen share price is having a fantastic year on the ASX. Currently, it is up by 138.5% year to date. It's also up by 142.9% over the last 12 months.

The company has a market capitalisation of around  $43.5 million, with approximately 117 million shares outstanding.

The post Why is the Renergen (ASX:RLT) share price up today? appeared first on The Motley Fool Australia.

The soaring share price appears to be driven by the helium and natural gas company's ASX release yesterday, after markets closed, announcing the completion and successful operation of its first Cryo-Vacc prototype.

Why is Renergen's Cryo-Vacc launch driving ASX investor interest?

The spike in investor interest in the company's Cryo-Vacc prototype is likely linked to its potential role in delivering COVID-19 vaccines, particularly in developing nations where reliable cold storage facilities are few and far between.

Renergen delivered the prototype to South African-based media in Johannesburg yesterday. The company plans to start production within days.

According to Renergen's release, Cryo-Vacc enables the "efficient transport and storage of ultracold biologics for periods of up to 25 days or longer in transit". This is possible even when there is no external power available. The unit can maintain temperatures in the range of anywhere from -150 ºC to 8ºC, enabling it to support the delivery of a suite of vaccines.

Cryo-Vacc units are also able to give accurate temperature readings of the vaccines during transit, along with GPS tracking.

The units use liquid nitrogen to transport by road and helium to transport by air. Helium is far lighter than nitrogen, and Renergen reported that based on current flight safety regulations, Cryo-Vacc with helium can transport up to 12 times more vials per flight "compared to other cryogens".

In South Africa, Renergen has partnered with local express courier partner, DPD Laser, part of The Laser Group, to distribute vaccines.

Commenting on the rollout of the company's Cryo-Vacc, Renergen's CEO Stefano Marani:

Precise temperature control combined with a formidable hold time in transit, makes Cryo-Vacc a compelling asset in the transport of biologics, especially in the developing world. With a useful temperature range of over 150 ºC, Cryo-Vacc is very versatile when compared to even standard refrigeration technology.

Following the presentation to South African media, Marani added (quoted by Reuters), "We've already started to take orders for this product. So we're ready to start going into production in the next few days."

He added that Renergen has already received numerous queries and order requests from across the globe.

Renergen share price snapshot

With today's intraday gains taken into account, the Renergen share price is up 45% so far in 2021. That compares to a gain of 3% on the All Ordinaries Index (ASX: XAO).

The post The Renergen (ASX:RLT) share price is surging 13%. Here's why appeared first on The Motley Fool Australia.

Renergen is an alternative and renewable energy business concentrating on helium and LNG. The company invests in early stage projects across Africa and emerging markets.

The company's key focus, the Virginia Gas Project, is located in Free State, South Africa and contains one of the richest helium concentrations recorded in the world.

Let's take a look at what the company has been up to recently and try to piece together the path that led to the Renergen share price soaring today.

Phase 2 of the Virginia Gas Project

This is the second time in the past two days that the Renergen share price has blasted off. On Wednesday, we were talking about Renergen shooting 24% higher following an announcement pertaining to phase 2 of the Virginia Gas Project.

The announcement revealed Renergen had contracted three companies to support the engineering studies of the project.

Saipem SpA is now responsible for the front-end engineering design (FEED) contract to develop the liquid natural gas and liquid helium processing facilities. EPCM Holdings will develop the phase 2 gas gathering pipeline, and Sproule will evaluate and certify the reserves.

The appointment of these three contracts will finalise the feasibility studies for the phase 2 development of the Virginia Gas Project.

With no new announcement today and the three new contract appointments having only come to light two days back, it looks like investors are still processing the news.

As mentioned in Renergen's latest announcement, under the guidance of the three appointed companies Renergen expects the Virginia Gas Project feasibility studies to be completed "on or around" the second quarter or 2021.

After this is complete, the Renergen board will present its final investment decision.

What has the Renergen share price done over the past 12 months?

The Renergen share price has a 52-week range of 84 cents to $2.90, a touch away from where it's trading today

Similar to many other companies, Renergen took a hit from the coronavirus and operations came to a dramatic halt, which sent the share price for a nose dive.

From 3 March to 24 March 2020, Renergen shares tumbled 88.5%, falling from $1.64 to 87 cents.

All in all, the Renergen share price has climbed around 140% over the previous 12-month period.

The post Renergen (ASX:RLT) share price explodes 71% today appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO), meanwhile, is heading the other way, down 0.8% at time of writing.

Why is the Renergen share price shooting higher?

The emerging helium and natural gas company's share price is soaring today following an update on its phase 2 Virginia Gas Project.

Located in Free State, South Africa, the Virginia Gas Project contains one of the richest helium concentrations recorded around the world, with readings of up to 12%.

The company reported it has contracted with 3 companies for the engineering studies of the project.

Saipem SpA was granted the front-end engineering design (FEED) contract to develop the liquid natural gas and liquid helium processing facilities. EPCM Holdings – currently constructing Renergen's Phase 1 gas gathering pipeline – was awarded the FEED contract to develop Renergen's Phase 2 gas gathering pipeline. And Sproule has been contracted to evaluate and certify the reserves.

Renergen reported that these 3 contracts will finalise the feasibility studies for the Virginia Gas Project's phase 2 development. It expects this to be complete in the second quarter 2021, after which the board will take its financial investment decision.

Commenting on the contract awards, CEO Stefano Marani said:

This is a significant step forward in the planning of Phase 2, as it not only defines the total capital expenditure required but will clearly help define the project's financial parameters.

Working with organisations like Saipem, EPCM and Sproule brings a wealth of knowledge, experience and technical capability to the overall project, which we believe will be of great benefit to our stakeholders and the long-term value of the Virginia Gas Project.

EPCM managing director Tom Cowan added:

EPCM looks forward to our continued partnership with Renergen to further develop the Virginia Gas Project. Having been involved since the very early stages of the development, we are proud of the progress thus far and are optimistic for what is to come from Phase 2.

Renergen share price snapshot

Following on today's gains, the Renergen share price is up 37% so far in 2021. That compares to a 1.5% gain from the All Ords.

Though still down from its February 2020 peaks, the Renergen share price is up more than 34% over the past 12 months.

The post The Renergen (ASX:RLT) share price is soaring 24% higher today. Here's why appeared first on The Motley Fool Australia.

Renergen is a renewable energy business that invests in early-stage alternative energy projects across Africa and other emerging markets. Its focus is on the commercialisation of its Virginia Gas Project which has reserves of both helium and natural gas.

What's moving the Renergen share price higher?

While the broader market falls, the Renergen share price is on the rise as investors welcome the company's positive update.

According to the release, Renergen has created a new vaccine storage solution which effectively simplifies the process of transferring immunisations.

Named 'Renergen Cryo-Vacc', the device enables a minimum of 100 doses to be transported at temperatures between -70 and -150 Celsius. Encased in aluminium, the Renergen Cryo-Vacc utilises liquid helium which is boiled and released over a period of 30 days, without any power supply. This permits vaccines to be transported over long distances, ensuring the doses aren't comprised by heat.

In addition, Renergen noted that the density of liquid helium is significantly lighter than liquid nitrogen. This makes the device easy to carry with an overall weight of just 20 kilos.

The company has filed for patent rights to the design, and is calling on its partners to adopt the ground-breaking solution.

Renergen has reported that not only does its device offer a cost-effective solution, but also allows vaccines to be delivered to remote areas.

What did management say?

Renergen CEO and managing director Mr Stefano Marani commented on the milestone achievement, saying:

As an emerging helium producer, we are proud to have developed this innovative concept, at a time when the world is seeking solutions on how to overcome the COVID-19 pandemic.

…we are inviting partners with the resources to roll-out large-scale manufacture of the Renergen Cryo-Vacc… Importantly, with the devices in circulation, transportation can be completed in a cost-effective manner, given the relatively small size and weight of the devices. Depending on where the helium is sourced, the operating cost of the device should be under US$0.07 per dose per day for the smallest device.

Renergen share price summary

The Renergen share price has had a bumpy ride over the last year. The company's shares reached as high as $1.72 in February, before falling to 52-week low of 84 cents in March.

Renergen shares have, however, been performing better of late and have increased more than 28% over the last 30 days.

The post Why the Renergen (ASX:RLT) share price is climbing higher today appeared first on The Motley Fool Australia.