Agreed,imo, we have seen some fundamental improvements not just in the company, but also in the industry as a whole over the last 9 months. In addition the global green initiatives being spearheaded by the new US administration and the widely reported speculation of a future commodity/mining and agriculture "supercycle" are also very positive macro factors for PWN. From my perspective, the company represents great value at these levels in comparison to other "peers".
I think that the divesture of non-core assets, being the DAV holdings, Dandaragan Trough Project and NM Lithium project were all good moves - these assets were little more than distractions that had, IMO, little hope of achieving any meaningful value creation for PWN shareholders, and in all likelihood the mining projects would be major cash drains for many years to come. IMO,once we sort out the company registration issues we can jetison KLPP as well. As a micro-cap company, PWN has limited financial and human resources, we need to focus on our core competences and allow management to steer a direction that will generate the highest value for shareholders. While not as exciting as the picture of cutting edge processing technology, the sale of high-end chemicals, equipment and the servicing there-of has the potential to be highly profitable
One other major, favourable, change in the fundamentals company is our considerable cash holdings (compared to our market cap). PWN had about $10.5m in cash after the recent cap raising and sale of the DAV shares and options, so even taking into account the acquisition of Multi-Wet, warehouse fit-out and inventory ramp-up for the products divisions, PWN still has a substantial warchest for the expansion of the services divisions or other acquisitions.
Short-term, I am most looking forward to the update of the expansion of the VU collaboration / research plan to be signed before 15th May 2021
Client validation and acceptance of new technology can be frustratingly slow, especially when that technology has not be proven at scale or is located close to production / processing facilities.
PWN Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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