Oracle Power (AIM:ORCP) Shareholder Q&A Q1 2024 - Zaks Traders Cafe Share Talk LTD

Zak Mir talks to Naheed Memon, CEO of Oracle Power, as she answers the latest questions from shareholders of the project development company.

Here’s a summary of the discussion:






Financial Status and Fundraising:

The company is actively developing multiple projects with different timelines and needs. Although funding is controlled and economically managed, future fundraising is likely as developmental needs arise.



Projects in Pakistan:

Oracle Power is deeply involved in discussions with local investors, the Pakistani government, and Chinese state-owned enterprises (like Power China) about developments in Pakistan. Despite the lack of frequent updates from Oracle, the company remains actively engaged in significant partnerships and dialogues in the region.



Realizing Shareholder Value:

The potential value from projects is expected to translate into significant market value. Oracle Power aims to divest interests at advantageous stages of project development, specifically noting a potential 20% stake in the green hydrogen project in the northern zone. The realization of shareholder value is contingent on increasing the probability of success across their projects, which they are diligently working to enhance.



Share Price Volatility and Valuation:

The CEO acknowledges the stock's recent volatility, with significant swings in its price, and the perception of a 10 pence valuation mentioned in the past. She explains that the share price movements are partially influenced by market sentiment and expectations formed based on news about the company's developments. She emphasizes the necessity of the company’s involvement in multiple projects, each with different timelines, affecting market perceptions and resulting in fluctuating prices.



Improving Market Confidence:

To enhance confidence among market participants, Oracle Power aims to improve its communication strategies. However, regulatory and compliance constraints require careful and verified communication to avoid misrepresentations. The CEO stresses the importance of a solid strategy and transparent updates about ongoing development work to foster market trust.



Cash Generation and Strategic Projects:

Regarding cash generation, the CEO clarifies that Oracle Power isn't in an operational phase that generates regular revenue but is focused on realizing value through strategic investments and exits. Specifically, the Northern Zone project, a smaller initiative, is highlighted as potentially being the first to generate returns. This project is nearing a joint venture agreement that could make Oracle a 20% shareholder in a gold resource, expecting tangible outcomes within the year.



In the concluding portion of the Oracle Power Q&A, the CEO, Naheed Memon, discusses two significant projects and their potential to deliver value to shareholders:






Green Hydrogen Project:

The Green Hydrogen project has progressed rapidly and updates have been shared with the market. Despite owning only 30% of this very large project, the impact and potential returns from even a small stake are substantial. The CEO expresses optimism about the project's progress and its near-term potential to return value.



Project Completion and Future Expectations:

In closing, the CEO emphasizes the swift advancement of the Green Hydrogen project and the Northern Zone gold resource project. She highlights the potential for these projects to generate significant returns soon, enhancing shareholder value.



Overall, the discussion reflects Oracle Power's strategic focus on developing large-scale projects with substantial future returns and their commitment to improving communication and market confidence. The CEO's perspective is optimistic regarding the upcoming returns from their investments, particularly from the Northern Zone and Green Hydrogen projects.