Coffee with Samso Episode 93 is with David Frances, Managing Director of Province Resources Limited (ASX: PRL)
Have you come across a project that is totally de-risked? This episode of Coffee with Samso is about two things, Green Hydrogen and a De-risked ESG Business.
The figure below lays out why I think this is one of the most Compelling ASX Stories that has graced Coffee With Samso.
If there was a second chance to ride an energy wave, Province Resources Limited (ASX:PRL) gives me the fuzzy feeling that this could be the horse to ride. If you look at the chart, you do get the feeling that the horses have bolted.
In these situations, I remind myself of my first IPO. I bought into Woolworths and it opened around AU$2.50 mark. I thought that was great but I distinctly remembered that I had no idea of where this price could go. Today, we see Woolworths around AUD$40 per share, with a market capitalisation of AU$50B.
The moral of the story is that one has to understand where the value will come and as a novice in shares at that time, I had not idea of whether to sell Woolworths or wait for a greater value.
Another example is Woodside which is now worth AU$21.23B. It can be argued that they are in the sunset mode but I remember when they listed, I did not know the concept of value adding or value creation.
The business of Green Hydrogen has just started and a company like Province Resources with a market capitalisation of approximately AU$150M is cheap considering that the idea of value in this sector is in its infancy.
If this is a sector for the future, the value creation part of the business has not even begun.
David Frances shares with us on this Coffee With Samso the unique entity that is taking on the Green Hydrogen story. We learn about a myriad of Hydrogen types.
Hydrogen is Not Hydrogen. The only thing that will kill this industry will be Government. ESG is here to stay. - David Frances
I have to say that this is one of the most compelling ASX stories I have come across. The research that I looked at prior to my first meeting with David was nothing compared to understanding the whole story.
Province Resources Limited is about a totally de-risked business which is just waiting for some government directions.
Chapters:
00:00 - Introduction
54:20 - Who Is David Frances?
01:28 - Why have we not heard of the Hydrogen business ?
02:17 - Hydrogen 101
03:59 - Is Hydrogen Hydrogen?
05:59 - How is the journey for the Efficiency of Hydrogen?
07:56 - What will Province produce?
08:49 - Are you specific to a type of Hydrogen?
10:13 - What is the business for Province and how does it work?
11:43 - The Hydrogen Royalty debate
13:23 - Green Tariff will drive the Green Hydrogen business
14:54 - The ESG is pushing this sector.
15:28 - What is the money people are saying about this Green Hydrogen business?
17:17 - The Importance of ESG parameters.
18:21 - The business plan for Province Resources Limited.
19:38 - Why Carnarvon?
20:55 The Total Eren Factor
22:21 Total De-risking
23:59 - Be careful of the use of the word Hydrogen....
24:36 - How Green Hydrogen fairs with Cost vs. Scale of business.
26:18 - Making the entire supply chain Green.
27:56 - The path that needs to be taken.
28:24 - Is the value of the shares over?
28:54 - The reasons why investing in Province is still in the early stage.
29:35 - When should investors come in? More reasons for investing in Province.
30:15 - What can break this business?
31:07 - Conclusion
PODCAST
About David Frances
Managing Director and CEO
Mr Frances is an international executive of nearly 30 years with a track record of transacting, discovering, funding, developing and operating assets in Australia and Africa. Mr Frances has been involved in the transformation of several companies including Mawson West (TSX:MWE) which he led from a micro-cap Western Australian based ASX Company which involved delisting the Company and then relisting on the Toronto Stock Exchange after completing the world’s largest base metals capital raise and IPO for 2010.
Mr Frances has served as Chairman – both executive and Non-Executive, Managing Director, and Non-Executive Director of a number of ASX and TSX listed and private Companies across a diverse range of business.
About Province Resources Limited
Province Resources Limited (ASX:PRL) is an ASX listed natural resources company currently focused on the mineral exploration and development of copper, gold, nickel, cobalt, vanadium and other mineral opportunities.
The Company aims to take advantage of the growing usage of these commodities in the growing green energy market.
Furthermore, Province is investigating the world class wind and solar resources of the Gascoyne Region at the HyEnergy Project, located within close proximity to key infrastructure such as the Dampier Bunbury Gas Pipeline, which may provide potential for the establishment of a Renewable Green Hydrogen Project capable of supplying domestic and international markets.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.
If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au.