RENERGEN RALLY TO PFS, page-429

Not sure if you have seen it yet - Blue Gem Research has released an updated valuation report based on the latest progress report (JSE price).
https://bluegemresearch.co.za/?p=289

Quote from the report:
“DCF-driven sum-of-the-parts (SOTP) valuation for Renergen implies Phase One & Two—offset by central costs, debt and (potential) dilution—are worth 4149cps (previously 3539cps). After options for Evander and Cryo-Vacc are added, we see Renergen’s share as potentially worth 4978cps (previously 4247cps).”

They increased their previous valuation of REN inter alia based on the drilling updates, helium concentration in the new wells and spot price updates (not helium, but inflation etc).

Interesting point in their report that I had missed so far: Drilling results of P007 & MDR1 not only reflect strong resource, flow & helium concentration, but also possibly lower capex intensity of Phase Two. Since MDR1 is located only 600m from Phase One, its flow rate highlights the potential for reduced well spacing without negatively impacting production. According to the report the cost of connecting wells is nearly a third of drilling capex. And as far as I understood Phase 2 will require multiple additional wells. So if drilling expenses can be reduced by placing wells nearer together then this has of course a positive impact on the valuation.

Sounds rather good to me. Grateful for the opportunity to load up. The last Ann confirms that they are on track, even if Mister Market obviously needs more spectacular results to wake up (i.e., a nice reserve update around the end of Q2).

And my assumption is that an undervalued stock with more positive announcements up its sleeve might be less prone to general market retracements once retail investors start to re-allocate their money into travelling, restaurants and bars again.