Under the radar10 Nov 2017 10:08
PML still totally under the radar and offering a great opportunity to pick up stock before a significant potential rise. Here's what makes the shares a great investment imo:
Cashed up - the company has �1.39 million cash after the recent fund raising. This is a sizeable war chest which can be used to create value and drive a much higher share price.
Skin in the game - the directors own 28.6% of PML, not far off 1/3 of the entire company! Most recently they invested �267.9k in the placing. That really is a significant sum to invest in such a small company. Their fortunes are closely aligned with those of the shareholders and as such they are financially motivated to drive the share price upwards. By investing such a large amount in the company they have also shown a real vote of confidence in the new strategy.
Paul Johnson - a key investor and director. He has shown the Midas touch with the likes of CON and GGP which have multi-bagged in a short period and where he built up positions at lows. More recently THR (where he is also a director and shareholder) has started to move up rapidly on significant volume. PJ has built up a 5.5% stake in PML and will help engineer a rising share price by attracting a wider audience and helping influence the board.
Assets - PML has world-class gold and copper assets in Australia and Papua New Guinea. The recent acquisition significantly transformed PML's asset base and all 3 projects hold the potential to be fast-tracked.
Newsflow / potential catalysts - plenty of near term newsflow is likely starting with ground exploration at the Lighthouse Project where there is the potential for a mineralised gold system in an area with excellent historical drilling results.
Low market cap - PML is a sub �5m micro-cap. With such a low capitalisation it doesn't take that much in the way of good news to multiply the share price several times over. With good newsflow, there is the possibility of a multi-bagger here.
Chart - the price has been basing sideways for several months now. Sideways bases can often act as the precursor to a significant and sustained rise when price breaks above the top of the base e.g. see the 2 year charts of BMN, IQE, GAW, GGP, ZOO etc.
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