Ann: Investor Presentation - May 2019, page-59

PUA is a prime example of skilful promotion - so you have to do it! Shortly before the news itself again shares at 0.02 AUD collect by rights issue https://stocknessmonster.com/announcements/pua.asx-3A515054/ and then accelerate.

MD Tolga Kumova owns just under 9.29% of the shares https://stocknessmonster.com/announcements/pua.asx-3A515974/. Tolga is not a blank paper in Australia - in other words, he's a well-known promoter (quite a compliment).

The last company that Tolga "raised" was Syrah Resources (see chart: https://stocknessmonster.com/charts/syr.asx/). In 2015 and 2016 the company listed at> 5.50 AUD and at that time at> 600 million AUD and was thus by far the highest rated graphite share in the world. (and in my private opinion the most overrated). Syrah still has a stock market value of AUD 390 million at the current price of 1.14 AUD. Tolga, however, has long since said goodbye - and certainly earns money.

In the context of PUA, it is worth taking a look at the storyboard of Syrah: 1. The goal of Syrah was to decorate the entire graphite market by positioning itself as the largest producer with the lowest cost. (whether that works for graphite is another question - but the story has used it twice: first, the rating of Syrah and, secondly, negative for all competitors because it was never clear whether the market would not collapse in the face of dumping / pricing). The experts were always skeptical. This has also to do with financing: Instead of going the long way on bankable feasibility and debt financing, Syrah has raised his capex over equity. After all,> 100 million AUD were at that time in my memory. But the point is: so far Syrah has had nothing but announcements and disappointments. Customer? Wrong! Likewise positive cash flow, no indication! But Tolga and his investors have earned their money. That's what matters.

If you transfer the pattern from Syrah to PUA, you can expect the following: heavy promotion, followed by large equity financings at probably surprisingly high levels; the attempt to tap public funds (in Canada) and the shake-up of the market (keyword "Cornern") / or the competitors. However, many unanswered questions remain: where does the raw material for the finished 10 tons come from? How expensive was the raw material, or how much did that cost the processing and how long did it take? Where should the raw material come from in the future - for example from the PUA project in South Australia? Probably not. "Rumor has it" that this project will not get approval. Next question: How important is the constant quality of the raw material and how can it be ensured? Will there be a FSO, or does PUA want to go the Equitiy way again (see Syrah)? For the Promo it comes naturally of course that the processing is "patented". This is always good for retail investors - you already know that from Altech (let's see what their patents are).

That sounds all maybe more negative than it is meant. One thing is certain, Tolga can raise money and he masters the art of promotion. Therefore, it may be useful for investors to bet on Tolga (PUA)! Only one should always distinguish between reality and story. This is admittedly difficult when a rising stock price seems to validate the reality of a story as strongly as it did at Syrah.

It is good for the sleepy HPA industry that an aggressive player is added. This should improve the visibility of the topic and the sector.