Renascor Resources’ Share Price Builds on Stellar January (ASX:RNU)

The share price of prospective graphite producer Renacsor Resources Ltd [ASX:RNU] isn’t showing signs of relenting this month after a strong performance in January.

At time of writing the RNU share price is up 10% to trade at 4.4 cents per share, thanks to concessions made by the SA Government over royalties at its Siviour Mine.

ASX RNU Share Price Chart

Source: Trading View

Last week RNU announced its Purified Spherical Graphite (PSG) had passed first stage product qualification, allowing them to progress towards a binding PSG offtake agreement.

‘New mine’ status

Today RNU announced that it received confirmation from the SA Government Treasury that the Siviour Graphite Project has been classified as a ‘new mine’ for the purposes of state royalties.

The ‘new mine’ status means that the project will receive a reduced royalty rate of 2% of the net value of the minerals recovered through 30 June 2026.

A reduction of 3.5% compared to the initial years of production.

Good news for both RNU and shareholders as the reduced rate will assist RNU in its strategy to be among the world’s lowest-cost producers of PSG.

Commenting on the decision, managing director David Christensen said:

Renascor has enjoyed a strong level of support from the South Australian Government, which recognises the substantial value-add that the world-class, worldscale Siviour Purified Spherical Graphite production facility brings to South Australia.

We are confident that through our Siviour Project, South Australia can become a truly globally competitive hub for the manufacture of raw materials critical to green energy revolution.

A revolution which our energy expert Selva Freigedo knows how to capitalise on.

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Where to next for Renascor Resources?

RNU has now entered into offtake agreements for over two-thirds of Siviour’s Stage 1 production of PSG.

And the prospective producer says it is concurrently discussing additional potential PSG offtake agreements for the remaining Stage 1 production.

RNU plans for Siviour to be a vertically integrated operation with a downstream processing operation to produce PSG.

Meaning RNU will mine, process, and market their product without any third-party interaction.

This will be Australia’s first vertically integrated PSG production facility.

And will boast the largest reported graphite ore reserve outside of Africa.

With a rising demand for electric vehicles and off-grid power storage, there is reason to hold a positive outlook for RNU’s share price — particularly with the renewables sector drawing in big investment currently.

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Regards,

Lachlann Tierney,
For Money Morning


Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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