Renergen General Discussion, page-744

Polyh,

I am not sure of the date when the Phase 1 Helium will be switched on, but I believe it will be very soon. That may sound like a vague and meaningless statement however I have tried to stay as close as possible to the project and with management, to whatever extent is practical because they are incredibly busy.

As per the last plant update (SENS announcement on 26 October) “We are fully cognizant of the plant being delayed, but we have been working around the clock to ensure its safe turn on without damaging this critical investment which will operate for the next 20 years at least. Our shareholders’ faith in the team does not go unnoticed, and ourprimary focus is to deliver a fully functioning plant with the lowest possible risk,”

In the same announcement it was also said that the snag that delayed the Helium switch-on “has now been corrected, reinstalled, tested and is operating reliably and within specification”.One of the senior Renergen guys told me that the actual date for the switch-on is not going to be announced beforehand because "that would “spoil the party which is going to happen soon”. So, make of that what you want but I have no doubt that a very festive party is imminent.

My engagement with the Renergen management (and other members of the team) has led be to the point where I personally have 100% faith in their technical and managerial expertise, their capacity to deliver (albeit with a few technical delays every now and again which is normal for a plant of its current size and complexity even though it is a dwarf compared to the plans for Phase 2), but most of all, their willingness to engage with me openly, honestly and with integrity which I do not doubt for a second. There is not a single Renergen employee I have spoken to who is not upbeat about the Helium switch-on, so I know it’s going to happen soon.

I get the feeling that the biggest frustration that Renergen management has stems from unjustifiably negative comments from impatient investors probably because of the delays in implementing scheduled milestones. I don’t think that most people appreciate the damage that Covid did because the South African government stupidly locked down the country for an absurdly long time, which played havoc with the economy. However, Renergen, despite the financial pressures that go with a company which has not yet gone into production, emerged intact from the storm (many other companies didn’t) although the damage in terms of lost productivity (while staff and other expenses had to be paid) was very severe and the repercussions are being felt even now. Few people actually factor this in, and some are openly cynical and unfairly critical of the company and its management as I have picked up from some on this HotCopper group who have unrealistic expectations about a company on the brink of a massive milestone after doggedly staying the course for 10 years.

This takes exceptional faith, perseverance and courage.I don’t get paid to say nice things about Renergen. As an engineer with plant experience, I just tell it like I see it and what I am seeing is truly amazing and impressive, so I have no hesitation in giving the Renergen team the credit they deserve. But then I see things through a realistic, long term, big picture lens as opposed to one through which one can’t see further than the short term where often an unrealistic, unforgiving get-rich-quick mentality drives the emotions. I’m not impatient about celebrating the Helium switch on party whenever that might be, however my gut feel tells me that it’s OK to start getting excited round about now.