Inlight of the upcoming potential Nasdaq listing, I thought I would listen theStefs recent interview with from the Ghostmail Ghost Stories segment, linkbelow
GhostStories #6: Say Hello to Helium (Stefano Marani, CEO of Renergen) - Ghost Mail
Apartfrom being an excellent interview, there was one segment that really got myattention from the 41:20 minute mark
1.The DFC has somesay in where the Helium goes
2.The CEF (CentralEnergy Fund) are still working through their processes for a 10% stake atapproximately AUD $6.50/ share
3.Lowest EBITDAtransition company listed on Nasdaq was at a 3.8 times forward EBITDA multiple.At current prices, Renergen`s EBITDA is at 0.4 times forward multiple. Thatwould be a fraction of the lowest IPO undertaken in a terrible year..
4.There are other multipleSth African companies have also taken a similar path to a Nasdaq listing in thealternative energy space with incredible forward EBITDA multiples, Stefmentioned one with a 27 Forward EBITDA multiple (with similar LNG output, minusthe Helium) , we are currently trading at 0.4 Forward EBITDA multiple
Asa result of the above, I thought I would research other Alternative FuelsEnergy Companies that are duel listed on both the JSE and the Nasdaq.
Istumbled across a company called Montauk, which I feel may be the companyreferenced during Stefs most recent interview.
Company | Montauk Renewables(montaukenergy.com)
“Teaming with landfill owners to produce renewable energy from landfill methane for more than 30 years
Aquick comparison of both companies provides details as below:
| Resource | Renergen | Montauk |
|---|
| 1 | LNG (GJ) | 34,400 GJ | 34,000 GJ |
|---|
| 2 | Helium (tonnes per day) | Yes | No |
|---|
| 3 | Primary Exchange | JSE | Nasdaq |
|---|
| 4 | EBITDA (USD) | USD $330 Million | USD $27.40 Million |
|---|
| 5 | Market Cap (USD) | $164.29 Million | $1.45 Bn |
|---|
All Montauk financialsavailable from link below
MNTK10.08 -0.2 -1.95% : Montauk Renewables Inc - MSN Money
So my question is, assuming Renergen lists on the Nasdaq, what would be a fair and comparative Market Cap when compared to Montauk…it has to be multiples of current SP/ Market Cap..
