PRL still/only has value when HyEnergy project continues under the company.
- PRL only a real estate company partially I agree it appears the one of those achievements company obtained in last two years. Land size is critical important to hydrogen project so it’s not shamed to be called real estate company at very early stage. risk: approvals can be withdrawn if the project not be seen as importance as before by WA government. And this possibility always exist however no sign of it at this point.
- something more value on the project people may forget: WA lead agency when I saw the debate on who ditched who in the the partnership between PRL and total Eren, many will believe Total Eren has no loss but only for PRL. I don’t agree this. Fact is DF coming to be the CEO at 2nd half of 2020, company direction has 180 degree changed by then. A few months later they announced HyEnergy project. A few days later Total Eren joined in. What we can see here? I have been convinced the project and Total partnership already confirmed back 2020 together with DF joined in. It’s not coincidence all happens in a few months (especially I learned how slow the project moved under their partnership after, no way that Total could be convinced in couple of days) sorry back to my point, Total has also lost two years with their ambition to their WA hydrogen program. They need to find another place another project another partner and better to be another lead agency. These works take time as well so either of them has lost something from the departure. In our cases, PRL loss more on uncertainty as it’s relatively small role here. risk: anyone can tell me if WA government also has the possibility to withdraw the lead agency to the project? As I said before the separation happened - SP will be fine as long as Total still with us - sadly was not the case now I would say the SP will be fine (no idea when?) as long as HyEnergy continues. The separation with Total send PRL backwards on the timeline of the project as it needs to find another partner. Does it has challenge? Yes. The world apparently has liquidity issues and will get worse. It will be more difficult to get money from the market than two years ago. But I want to give you some confidence so I will say the project still has its value after all it has progressed in the last two years. Feasibility study is on the way, government and local support still with us. If DF can convince Total in 2020 with nothing in his hand, then he should no problem to do it again now.
Everything has both sides, I will post more when I got chance. Leave the emotions and also the SP for now - don’t let it remind me how terrible of my judgment made in the last two years.
PRL Price at posting:
3.7¢ Sentiment: Hold Disclosure: Held
(20min delay)