Renergen Reports 1,311 Tons LNG Output, Secures US$30M Loan for Expansion

Steady Production Amid Maintenance

Renergen Limited’s latest quarterly update reveals a largely stable operational performance with liquefied natural gas (LNG) production holding firm at 1,311 tons, only slightly down from the previous quarter’s 1,371 tons. This minor dip is attributed to a scheduled maintenance shutdown in May 2025, which temporarily impacted output during ramp-down and ramp-up phases. Meanwhile, helium production has been temporarily halted after filling and selling one dewar, as management awaits the implementation of an optimized filling solution for both dewars and larger iso-containers.

Strategic Merger and Financial Strength

One of the most significant developments is the proposed merger with ASP Isotopes, announced during the quarter. This transaction aims to create a unique critical minerals entity with a stronger balance sheet, potentially positioning Renergen at the forefront of the sector. Supporting this strategic move, ASP Isotopes has extended a US$30 million loan facility to Renergen, providing vital liquidity to complete and ramp up Phase 1 production and advance pre-development work on Phase 2. The company reports sufficient funding to meet its operational and development needs, with an estimated 2.78 quarters of funding available.

Exploration Momentum Builds

Exploration activities are gaining momentum, highlighted by the acquisition and interpretation of Vertical Seismic Profiling (VSP) data. Preliminary analysis has identified several amplitude anomalies suggestive of gas accumulations at various depths on Tetra4’s property. This data, calibrated against existing seismic surveys and offset wells, is guiding the finalization of drilling locations. Concurrently, Renergen has spudded five vertical wells targeting the Wits Quartzites formation as part of the Phase 1 C drilling campaign, underscoring a proactive approach to resource delineation.

Navigating Legal and Regulatory Challenges

On the regulatory front, negotiations continue with the Springbok Solar Project following a decision to set aside a previously obtained approval, reflecting ongoing efforts to find a path toward coexistence. Meanwhile, legal proceedings initiated by Molopo against Tetra4 concerning a loan agreement remain unresolved, with the earliest hearing date estimated nearly five years away. Despite this, Renergen maintains the loan as a long-term liability and continues to comply with all relevant debt covenants.

Debt Profile and Covenant Compliance

Renergen’s financial structure includes multiple loan facilities from institutions such as the US International Development Finance Corporation (DFC), Industrial Development Corporation (IDC), Standard Bank of South Africa (SBSA), and convertible debentures linked to a Nasdaq IPO. The company reports compliance with all debt covenants and has replenished its Debt Service Reserve Account as required. Interest expenses and guarantee fees are being managed prudently, with detailed disclosures on loan terms and repayment schedules.