1) Sentiment and understanding the Business plan difference. Other laterite plays have come off 70% or so in recent times, which doesnt help the sentiment in the short term. Most people just clump all the nickel laterite into a basket. Like I posted previously this is a different business strategy. One that has worked very well and profitably before and was preferred to mining by Queensland Nickel from 1989 through to 2016, despite well known laterite deposits sitting nearby. It takes awhile for people to get their head around the idea. You actually need to look at the numbers, grades, costs and history of importing ore to get your head around it. People's first reaction is importing ore doesnt that cost heaps? Shipping is by far the cheapest form of transportation. For example it costs as much to ship from NC to Townsville as it does to drive a truck 60km on unsealed road.The average retail guy doesnt get it, hell some think that they put the ore into shipping containers. For most ppl in in the spec space its more a case of whats hot and moving and being flogged off to them. It is my belief that this is the most feasible nickel laterite play on the asx. It may seem crazy to say given that the MC is $5m and not much activity. Whilst buying in on hype with a lot of discussion, activity and trades can be reassuring its often the worst time. Its like buying AVZ at 20c, it moves 20% a day and everyone will tell u how wonderful it is and it feels great for awhile but the level of buying and progress required to sustain that level is astronomical.
2) Marketing. There has been no marketing of the story in terms of conferences etc. A lot of that has to do with the fact theres only so much you can really promote without the deal being finalized. This will hopefully change with PM1 looking to speak at the Asia Pacific Nickel Conference as well as possibly Mines and Money hk. I will also say PM1s corporate advisor has had a pretty tough year so its hard to garner support for the stock when their other stocks are getting a hammering, some clients also may see this as an opportunity to get unstuck. To be fair to them its been a pretty tough year in the spec stock space so they aren't alone in that regard but the spec end of the market looks much better now, albeit yet to flow into the resource end of it. There's only so much you can market without the deal being executed. Once it gets voted through at the EGM they can really push harder.
I think we are so use to convoluted deals on the ASX pushed by broking houses or vendors with relationships with the company. A lot spike then burn out in pump and dumps. Some prefer those plays and lets be honest who doesnt love a good pump. This isnt a pump and dump play its a tick the boxes play and get it going play with the next one being getting ore through the processing plant.
PM1 Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
