Member Info for jpsherwin

H, thanks for your thoughts and for raising some very valid points. Here’s my take on some of the issues you’ve raised and where I see things heading.

1. Project Developer

Oracle has shifted towards being a project developer rather than an operator. This means the company’s focus is on taking projects to a stage where they attract buyers or strategic partners, instead of fully building and running them.

While this approach makes sense given their resources, the timing of any sale is critical. Selling too early or without enough progress can lead to undervaluation, which is frustrating for investors. Oracle has to maximise returns; they need to ensure their projects are advanced enough to command strong valuations or lose investor confidence in the management team and their inability to deliver.

2. Northern Zone Gold Project

Your concerns about selling the gold project "cheap." It’s always a worry when a company is trying to monetise assets. However, the drill results so far look promising, and with an upcoming Mineral Resource Estimate (MRE), there’s potential to secure a better valuation.

Ideally, the management team should focus on hitting those key milestones—MRE, permitting, and possibly partnerships—before they consider any sale. If they do decide to sell, retaining a small royalty or equity stake could give investors a longer-term benefit.

3. Green Hydrogen Project

The financing hurdle is definitely the big question here. Without it, the project can’t move forward. But the partnerships they currently have in place, especially with HH Sheikh Ahmed Dalmook Al Maktoum and PowerChina, add a lot of credibility to the venture.

Even if Oracle ends up with only a small percentage of the project—say 2-5%—it could still be a significant revenue stream given the size of the green hydrogen market. The key will be ensuring transparency about what that stake means for investors and how it ties into the bigger picture.

4. Thar Coal Project

It’s been in limbo for a while, and the government’s mixed signals about prioritising domestic coal over imports haven’t helped. That said, it’s not entirely dead. The project’s inclusion in CPEC and Oracle’s previous regulatory progress are still positives.

The challenge will be pushing this forward in a way that makes sense for both Oracle and the government. A clearer strategy from management on Thar Coal would address the uncertainty around it.

5. Diverse Portfolio

Oracle’s portfolio is broad, which can create confusion about what their priorities should be.

Final Thoughts

In my opinion, Oracle’s ability to succeed hinges on a few things:

• Timing their asset sales properly to avoid undervaluation.

• Keeping investors informed about progress and what each milestone means.

• Balancing short-term cash flow needs with long-term goals.

BB & Heim, has anyone run revenue projections for:

1.Hybrid Renewable Energy

2.Green Hydrogen

3.Thar Coal

Assuming ownership % will reduce dependant on partnerships and financing.

It's an interesting point you've raised GH, but it's worth exploring a few nuances. Firstly, hindsight is always a wonderful thing.

Looking back, it's easy to criticise decisions made without the clarity that time and unfolding events bring. Investing inherently involves risk, and as we know, past performance is not indicative of future results. While the decline you reference is significant, it's important to separate disappointment in past outcomes from the potential future opportunities that might still exist.

The question of whether you've personally invested in Oracle Power is relevant here. If not, your position might stem more from observation than first hand experience, which can affect perspective. For those who have invested, understanding and accepting the risks beforehand is crucial. A high-risk tolerance doesn’t necessarily make something a better investment, it simply means the individual was willing to face potential loss in pursuit of potential gains. Whether or not that was a wise decision depends on their overall financial situation, goals, and strategy.

Investing in high-risk ventures often requires diversification and thorough research. It's also a reminder that investing money you cannot afford to lose is never advisable. Safer plays do exist in more established, less volatile companies for those seeking more stability, though they may come with lower potential returns.

Lastly, while it’s true that many PIs lose money ( as I have) by underestimating risks, others use these experiences ( as I have) as valuable lessons. The key is diligent research, diversification, and a strategy that aligns with one's financial capacity and goals.

To counter your point with a fitting quote:

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Philip Fisher

The true value of any investment lies in its future potential, not solely in its past trajectory.

No argument from me GH, ultimately it is down to the individual, their tolerance for risk and the level of research they undertake. I will always welcome further research be it positive or negative. Please do share.

NewboF,

I understand your perspective, but to clarify, I also invested at a higher price. My investment was made through a well researched, long-term strategy. The price at which I invested is ultimately irrelevant, as my focus is on the company's long-term value and fundamentals. My decision was based on thorough research, and I will continue to invest because my conviction in the company's future remains unchanged.

I cannot speak for others but would hope if they did invest at a higher price than today, they did so on thorough research.

6. Market Volatility

• Oracle Power’s share price is highly volatile, reflecting market sentiment rather than fundamental progress.

• Small-cap companies like Oracle are particularly vulnerable to external factors such as commodity price swings, economic downturns, or negative investor sentiment.

7. Execution Risk

• Oracle has multiple large-scale projects under development simultaneously, which could strain its resources and management capacity.

• Delays or cost overruns in one project may negatively affect others.

8. Financing Challenges

• While Oracle has historically raised funds, its ability to secure the large-scale financing needed for projects like the Thar Coal Block VI and the Green Hydrogen Plant remains uncertain.

• Failure to secure funding on favourable terms could delay or jeopardise project completion.

9. Commodity Price Fluctuations

• Oracle’s mining projects are vulnerable to fluctuations in gold, copper, and coal prices.

• Prolonged periods of low prices could impact project viability or profitability.

10. Competitive Landscape

• Oracle operates in competitive industries:

o Green hydrogen: Competing with well-established players in Europe, the Middle East, and Asia.

o Mining: Competing with larger, well-funded miners in Australia.

• Oracle’s smaller size and limited resources may make it harder to compete effectively.

I'll highlight the following to ensure those that may not agree with my opinion also understand that I am not posting to mislead anybody. Please DYOR.

1. Limited Current Revenue

• Oracle Power does not yet generate significant revenues, relying on external funding to progress its projects.

• Investors are betting on future project success, which may take several years to materialise.

2. High Dilution Risk

• Oracle has a large number of shares outstanding (Circa 10.27 billion) and frequently raises funds through equity placements or warrants, leading to dilution of existing shareholders.

• Future funding needs for capital-intensive projects may further dilute equity.

3. Dependency on Partnerships

• Many projects rely heavily on strategic partners (e.g., Kaheel Energy, PowerChina, Riversgold), which reduces Oracle’s control.

• If partnerships falter or partners withdraw, project timelines and feasibility could be severely impacted.

4. Political and Regulatory Risks

• Pakistan Projects:

o Regulatory delays, policy changes, or geopolitical tensions in Pakistan could derail timelines or increase costs.

o Reliance on sovereign guarantees or government agreements adds uncertainty.

• Australian Projects:

o Environmental regulations and permitting processes in Australia may delay exploration or mining activities.

5. Long Payback Periods

• Projects like green hydrogen, hybrid renewable energy, and coal-to-energy require substantial upfront investment and have extended timelines (often over a decade) to achieve profitability.

• Investors seeking short-term returns may find this unattractive.

6. Exploration Upside

• Northern Zone Gold Project: Promising initial drilling results, with high-grade intercepts of 8m @ 4.86 g/t Au and 6m @ 3.13 g/t Au.

• Blue Rocks Valley Copper and Silver Project: Initial assays confirm copper grades of up to 25.7%, indicating potential for a significant resource.

7. Environmentally and Socially Aligned

• Renewable Energy Focus: Oracle is actively contributing to global decarbonisation goals through green hydrogen and hybrid solar/wind projects.

• Carbon Credits: Renewable energy initiatives can generate valuable carbon credits for additional revenue streams.

8. Scalability

• Oracle’s projects, such as the green hydrogen plant and the hybrid renewable energy facility, are scalable, allowing for phased expansions to meet growing market demand.

• The early-stage Blue Rocks and Northern Zone projects provide opportunities for resource upgrades and future monetisation.

9. Undervalued Market Position

• Oracle Power’s market capitalisation (~£2.67 million) does not reflect the scale of its project pipeline or the value of its partnerships and assets.

• Significant upside potential exists if projects reach critical milestones, such as feasibility study completions, financing agreements, or resource confirmations.

10. Strong Leadership

• Naheed Memon, CEO: A proactive and strategic leader with extensive experience in managing large-scale infrastructure and energy projects.

• The leadership team has demonstrated the ability to secure high-profile partnerships and navigate complex regulatory environments.

Here are 10 compelling reasons to consider when investing in Oracle Power PLC based on its current projects, partnerships, and market positioning, this is from my own research and should not be considered advice.

1. Diversified Project Portfolio

• Oracle Power is involved in a mix of high-potential projects, including:

o Green Hydrogen Production: A cutting-edge renewable energy initiative with strong global demand.

o Coal-to-Energy Development: Part of Pakistan’s energy security strategy under the China-Pakistan Economic Corridor (CPEC).

o Gold and Copper Exploration: Exposure to valuable commodities in globally recognised mining regions.

• Diversification reduces dependency on any single asset or industry.

2. Strategic Partnerships

• Partnerships with industry leaders and influential stakeholders, including:

o HH Sheikh Ahmed Dalmook Al Maktoum: Brings credibility and financial clout to Oracle’s ventures.

o PowerChina: Technical expertise and potential funding support for renewable energy projects.

o Riversgold Ltd: Operational partner for the Northern Zone Gold Project, reducing exploration risks.

3. Positioning in Growing Markets

• Green Hydrogen: Positioned to capitalise on the growing global demand for renewable hydrogen, with export opportunities to Europe, the Middle East, and Asia.

• Coal-to-Energy: Meeting Pakistan’s pressing energy needs, making Oracle’s projects critical to national energy policy.

4. Part of CPEC Framework

• Oracle’s Thar Coal Block VI Project is included in the China-Pakistan Economic Corridor (CPEC), ensuring prioritisation by the Pakistani government and access to Chinese financing.

• Sovereign guarantees under CPEC de-risk investments and enhance project viability.

5. Revenue Potential

• Hybrid Renewable Energy Project: Expected to generate annual revenues of $125 million from solar and wind electricity sales.

• Green Hydrogen Plant: Potential revenues of $183.75 million/year from hydrogen production.

• Thar Coal Project: Estimated revenues of $570 million/year from power generation and coal sales.

5. Blue Rocks Valley Copper and Silver Project (Ashburton Basin, Western Australia)

Partnership Overview

1. Project Focus:

o Exploration of high-grade copper and silver mineralisation along a 2-km mineralised trend.

2. Key Partners:

o APEX Geoscience Ltd:

 Leading geochemical sampling and exploration.

 Provides technical expertise for refining drilling targets.

3. Recent Developments:

o Initial Assays: Confirmed copper grades up to 25.7%.

o Geochemical Sampling: Scheduled to begin early 2025.

4. Impact on Oracle Power:

o Early-stage project provides significant upside potential if drilling confirms a viable resource.

o Partnership with APEX reduces exploration risks.

Milestones and Future Plans:

• Begin Sampling: Q1 2025.

• Initiate Drilling Campaign: Mid-2025.

• Publish Preliminary Resource Estimate: Late 2025.

3. 1.3 GW Hybrid Renewable Energy Project (Jhimpir, Sindh, Pakistan)

Partnership Overview

1. Project Focus:

o Development of a hybrid solar (800 MW) and wind (500 MW) energy facility to supply electricity to the national grid.

2. Key Partners:

o National Transmission and Dispatch Company (NTDC):

 Responsible for integrating the project into Pakistan’s national grid.

 Expected to sign long-term Power Purchase Agreements (PPAs).

o PowerChina International Group Ltd (potential partner):

 May assist with construction and financing under the CPEC umbrella.

3. Recent Developments:

o Environmental Approval: Received a No Objection Certificate from the Sindh Environmental Protection Agency (SEPA).

o Transmission Study: Completed and submitted to NTDC.

4. Impact on Oracle Power:

o A large-scale renewable energy project positions Oracle Power as a key player in Pakistan’s energy transition.

o Partnerships with NTDC and PowerChina enhance the project’s technical and financial viability.

Milestones and Future Plans:

• Sign PPAs: Q1 2025.

• Secure Project Financing: Mid-2025.

• Begin Construction: 2026.

________________________________________

4. Northern Zone Gold Project (Kalgoorlie, Western Australia)

Partnership Overview

1. Project Focus:

o Exploration and development of high-grade gold deposits near Kalgoorlie, Western Australia.

2. Key Partners:

o Riversgold Ltd:

 Holds an 80% stake in the project.

 Responsible for exploration, permitting, and operational activities.

o Oracle Power:

 Retains a 20% non-operating stake, contributing financial support.

3. Recent Developments:

o Initial Drilling Results:

 8m @ 4.86 g/t Au.

 6m @ 3.13 g/t Au.

o Mining Lease Application: Submitted to the Western Australian government.

4. Impact on Oracle Power:

o Exposure to high-grade gold potential without assuming operational risks.

o Potential for cash inflows or project sale after establishing a Mineral Resource Estimate.

Milestones and Future Plans:

• Secure Mining Lease Approval: Q1 2025.

• Complete MRE: Mid-2025.

• Expand Drilling Campaign: Late 2025.

1. Green Hydrogen Project (Jhimpir, Sindh, Pakistan)

Partnership Overview

1. Project Focus:

o Development of a 400 MW electrolyser facility for green hydrogen production powered by renewable energy sources (solar and wind) in the Jhimpir Wind Corridor.

2. Key Partners:

o Kaheel Energy (owned by HH Sheikh Ahmed Dalmook Al Maktoum):

 Holds a 70% stake in the joint venture Oracle Energy.

 Provides financial backing and strategic oversight.

o Power China International Group Ltd:

 A leading Chinese energy infrastructure company providing technical expertise and potential financing support.

 Focuses on feasibility studies and infrastructure planning.

3. Recent Developments:

o Feasibility Study: Currently underway, led by Power China, to assess the technical and financial viability of the project.

o Stakeholder Engagement: Discussions with potential hydrogen offtakes, including European and Middle Eastern markets, are ongoing.

4. Impact on Oracle Power:

o Oracle Power retains a 30% stake, ensuring significant participation in future revenues.

o The partnership with HH Sheikh Ahmed and Power China elevates the project’s credibility and financial viability.

Milestones and Future Plans:

• Complete Feasibility Study: Q1 2025.

• Secure Project Financing: Mid-2025.

• Commence Construction: Late 2025.

________________________________________

2. Thar Coal Block VI Project (Sindh Province, Pakistan)

Partnership Overview

1. Project Focus:

o Development of a coal mine and a 1,320 MW mine-mouth power plant as part of the China-Pakistan Economic Corridor (CPEC).

2. Key Partners:

o China National Coal Development Company:

 Technical and operational partner for coal mining.

 Provides expertise in coal extraction and power plant construction.

o Government of Pakistan:

 Supports the project under the CPEC framework.

 Provides regulatory approvals and potential sovereign guarantees.

3. Recent Developments:

o CPEC Recognition: Inclusion in CPEC ensures prioritisation by the Government of Pakistan and access to Chinese funding sources.

o Regulatory Approvals: Oracle is working with the Sindh Coal Authority for permits.

4. Impact on Oracle Power:

o Secures long-term participation in one of Pakistan’s largest coal-based energy projects.

o The partnership with China National Coal Development Company mitigates technical and operational risks.

Milestones and Future Plans:

• Finalise Government Approvals: Q1 2025.

• Secure Chinese Financing: Q2 2025.

• Begin Construction: Late 2025.

Any LTH's here shed any light on the following from 2020:

Key Highlights

1. Total Financing Facility: £46.5 million

o £1.5 million Share Subscription: Immediate funding for working capital, ensuring operational continuity until January 2022.

o £45 million Placing Subscription Facility (PSF): Flexible funding over 60 months to support future project expenditures.

2. Purpose of Funding:

o To strengthen Oracle's working capital position.

o To support ongoing development at the Thar Block VI Project in Pakistan.

o To position Oracle Power for additional opportunities in power and natural resources.

3. Investor Participants:

o Arranged by Riverfort Global Capital Ltd.

o Investors: YA II PN, Ltd and Riverfort Global Opportunities PCC Limited.

________________________________________

Details of the Financing Facility

1. The Subscription Deed (£1.5 million):

o Funds received as a prepayment for shares issued within 18 months.

o Share price determined by:

 125% of the 5-day VWAP before the advance.

 Or 90% of the lowest daily VWAP in the 10 trading days prior to issuance.

o Oracle retained flexibility on the timing and volume of share issuance.

2. The Placing Subscription Facility (£45 million):

o Available over 60 months, providing capital at Oracle’s discretion.

o Subscription Amount Limits:

 Maximum of 1,000% of the average daily traded volume over 15 trading days.

 Investors could not hold more than 19.9% of Oracle’s issued share capital.

o Investors received shares based on 90% of average daily closing bid prices during a 15-day pricing period.

3. Warrants:

o 250 million warrants issued at an exercise price of 2 pence each, valid for 36 months.

o Exercise price adjustable to 120% of the market price after 12 months if the market price fell below 2 pence.

ORCP is actively engaged in several projects across Australia and Pakistan. Below is a summary of each project, including details on grades, timelines, discussions, potential investors, and other pertinent information.

1. Northern Zone Gold Project

• Location: Approximately 25 km east of Kalgoorlie, Western Australia.

• Grades: Recent drilling has reported significant high-grade gold intercepts, including:

o 8m at 4.86 g/t Au from 34m, including 1m at 18.22 g/t Au.

o 6m at 3.13 g/t Au from 30m, including 1m at 10.41 g/t Au.

• Timelines:

o A Mining Lease application was submitted in early December 2024.

o The project is progressing towards a maiden Mineral Resource Estimate (MRE).

• Discussions and Potential Investors:

o Oracle Power has a farm-in agreement with Riversgold Ltd, an ASX-listed gold exploration company, allowing Riversgold to earn up to an 80% interest in the project.

2. Blue Rocks Valley Copper and Silver Project

• Location: Ashburton Basin, Western Australia, approximately 165 km southeast of Onslow.

• Grades: Initial on-site assessments have confirmed high-grade copper and silver mineralisation.

• Timelines:

o In December 2024, Oracle Power appointed APEX Geoscience Ltd. to lead exploration activities.

o A geochemical sampling program is scheduled to commence in early 2025 to refine drilling targets.

• Discussions and Potential Investors:

o Oracle Power holds a 100% interest in the project and is actively developing it to attract potential investors.

3. Green Hydrogen Project

• Location: Jhimpir Wind Corridor, Sindh Province, Pakistan.

• Project Details:

o Oracle Power is developing Pakistan's first green hydrogen production facility, aiming to contribute significantly to the country's renewable energy landscape.

• Timelines:

o The project is in the development phase, with ongoing discussions to establish timelines for construction and operation.

• Discussions and Potential Investors:

o The project is a joint venture with His Highness Sheikh Ahmed Dalmook Al Maktoum, indicating strong investor interest and support.

4. Thar Coal Block VI Project

• Location: Thar Desert, Sindh Province, Pakistan.

• Project Details:

o The project involves the development of a coal mine and a 1,320 MW mine-mouth power plant.

• Timelines:

o Oracle Power is in discussions with potential partners and offtakes to advance the project, with timelines to be established upon finalisation of agreements.

• Discussions and Potential Investors:

o The project is part of the China-Pakistan Economic Corridor (CPEC), with collaborative partnerships involving China National Coal Development Company and HH Sheikh Ahmed Dalmook Al Maktoum.

R88, I couldn’t keep up with you and your posts :-)

This was your post earlier, post RNS.

“ THIS IS RISK FREE NOW

PH out is a HUGE positive for forward movement and this is being heavily bought into.

Should be back to 0.0005's in short time, i.e tomorrow!!”

Any update V?

Morning V,

Is this the news you referred to in your 19:33 post yesterday?

Https://asian-power.com/search/google

Https://x.com/PetroleumGlobal/status/1862028477454782854

#GBP Update on the progression of the Namibia Farm-Out & Juno Project

📝 We are at an important juncture with talks advancing on the PEL94 farm-out agreement in Namibia

📄At Juno, positive aeromagnetic data has expedited the commencement of the ground-based gravity survey