by | Nov 9, 2022 | Stock Investing

Last Updated: November 9, 2022

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AMMPF stock started operations in May 2019 as Soldera Mining Corp. It then changed its name to AmmPower Corp. (OTC: AMMPF) in April 2021. The company operates various lithium mining projects and is developing a proprietary solution for green ammonia and hydrogen.

Many of the blue-chip stocks are priced at anywhere between 30 and 50 times their book value. So, more investors are turning to small early-stage businesses in the hope of finding a unicorn. And if it’s not a unicorn it may represent better value for growth prospects than extremely expensive well established corporations.

Let’s take a look at AMMPF stock, its prospects, company and sector fundamentals as well as the latest news events and stock price performance.

AMMPF stock performance chart
Source: TradingView

AMMPF Stock: Company Summary

AmmPower Corp. is a resource exploration company based in Vancouver, Canada. The company is developing its focus on clean energy as it continues to develop solutions for green ammonia and hydrogen.

Ammonia is a common substance for fertilizers, but it may also have a use in green energy. The company uses its unique mix of research, project development, solution discovery, and engineering to provide a future of clean energy. AmmPower is active in these three main sectors:

  • Carbon-Free Fuel
  • Green Fertilizer
  • Hydrogen Power

AMMPF owns the Whabouchi South lithium exploration property located in the James Bay region of Quebec, Canada. The company also holds an option on the Titan Property in the Klotz Lake region of Northwestern Ontario, Canada. 

As part of its drive for a share of the clean energy industry, the company is also investigating catalyst methods to react nitrogen and hydrogen. On the mining side, AmmPower Corp. may acquire 100 percent ownership of the Titan Gold Property, which accounts for 24 unpatented mining claims. 

AMMPF In the News

In September 2022, AmmPower announced the closing of the first tranche of a private placement. The placement issued 4,769,739 common shares at a price of $0.23, for gross proceeds of just over $1 million.

The second tranche of this private placement was closed in October 2022. The second tranche, much smaller in size, was for 772,174 common shares at a price of $0.23, for gross proceeds of $177,600. For each tranche of the private placement, each allocation of one share also carried an option to purchase one share.

The option to purchase 1 common share for each share bought in the private placement, gives the holder the right to acquire one share of AMMPF stock at the price of$0.31 until October 24, 2024. The company intends to use the proceeds from the two rounds of financing for general working capital purposes.

New Green Ammonia Product

AmmPower Corp. entered negotiations for the sale of its Independent Ammonia Making Machine (IAMMTM). Deliveries would begin in late Q1 of 2023. The company sees it as a pivotal point for commercialization and revenue generation.

The firm tested the IAMMTM at their manufacturing and R&D facilities in Michigan, where it has produced 50 kg of ammonia per day. The Independent Ammonia Making Machine was first launched in July 2022. Since then, AMMPF has received a multitude of inquiries.

AmmPower initially created this product for the fertilizer industry but was surprised to see a lot of interest coming from other sectors such as industrial and energy. The product has also attracted interest from all over the globe. 

Green Ammonia Plant in Brazil

The company announced on August 30, 2022, that it had completed a pre-feasibility study and created a layout plan for a green ammonia plant in Brazil.  AmmPower collaborated with an EPC (engineering, procurement, and construction) company to complete the study.

 The company has a Memorandum of Understanding with Porto Central, a port under development in Brazil. The company plans to use solar and offshore wind energy from strategic coastal locations. The use of these resources will help the company maintain stable resource costs and make the project a more effective business at an optimal market price.

The plant project estimates the final production rate at 4 thousand metric tons per day of ammonia. And 2 thousand metric tons per day of green ammonia. The facility is designed to distribute fertilizer and transport ammonia to off-takers through the Atlantic Ocean conduit. Also supporting shipping companies by providing bunkering and jetty accessibility for fueling and loading ships. 

Breakthrough Technology

At the beginning of August 2022, AmmPower announced it had completed a successful demonstration of ammonia cracking and produced 100 watts of electric energy. Ammonia cracking consists of separating the two components of ammonia. These components are nitrogen and hydrogen. 

The hydrogen obtained is then used to fuel a proton exchange membrane to produce electricity. The experiment produced 100 watts of electricity which they used to power an LED light. This experiment only acts as a demonstration of what is possible. 

Further development needs to be undertaken to prove the scalability of the concept. However, it could prove to be a green and relatively cheap way to power electric fuel cells. 

AMMPF Stock Profile

  • Market Capitalization: $20.5 million
  • Earnings Per Share (TTM): -0.316
  • Dividend Yield: Not Applicable
  • Average Daily Volume: 106 thousand shares
  • 52-Week Price Range: $0.1524 – $0.5510
  • Gross Profits: Negative Trailing Twelve Months

AMMPF Stock: Fundamental Analysis

This company is still an early-stage company so the typical fundamentals investors may look at are irrelevant in a fundamental analysis of AMMPF Stock. The company is developing various technologies based on what they call ammonia cracking. Which could prove to be groundbreaking if it reaches the necessary scalability. 

They have also produced a product that in the agricultural industry may prove to be very successful. And they are making projects for ammonia production with a strong focus on sustainability and the use of renewable energy.

A lot remains to be seen still as to how far the products and the technologies that AMMPF is developing can go. Certainly, using ammonia to create hydrogen fuel cells could be a breakthrough technology if it is scalable.

However, other questions arise as to whether the political apparatus is willing to pivot toward hydrogen-based energy. Since there seems to be a clear preference for electric vehicles, which are known to contaminate through battery and electricity production. 

While hydrogen fuel cells may be a much greener and more environmentally friendly alternative. So, even if this technology reaches levels of production that could service fleets of cars and industries it may never find acceptance if government priorities don’t change.

That said, the industry they are operating in probably has a large scope for expansion. More and more companies are becoming ESG-friendly and adopting measures to cut back on carbon emissions. AmmPower has made sustainable products part of its core business. So, they seem well-positioned to take advantage of ESG expansion.

AMMPF Stock: Technical Analysis

Looking at the day chart for 2022, we can see that AMMPF stock reached a high of $0.551 on January 14. And since then, it has been on a consistent decline. It’s true that the broader stock market and Nasdaq also have been losing ground.

However, given the early-stage position of AmmPower’s business cycle, it wouldn’t be appropriate to compare it to the broader stock market. In absolute terms, YTD AMMPF stock has lost 37.31 percent. And from its high in January it has lost 61.9 percent.

AMMPF Stock YTD Chart
Source: TradingView

From a technical viewpoint, the trend still looks bearish for this company’s stock. The AMMPF stock price is below its 50-day and 100-day moving averages. However, the 50-day moving average had managed to cross above the 100-day moving average thanks to the rally of August 2022.

But that initial bull run that managed to carry on through to September has since faded away. While AMMPF stock price remained above the 100-day moving average for two months it hasn’t managed to maintain the ground gained.

 AMMPF Stock: Conclusion

AmmPower Corp. is in a niche market where it is developing ways to produce clean ammonia for fertilizers but also for industrial and energy uses. They are also developing a method of decomposing ammonia to obtain hydrogen for use in fuel cells.

They already have a ready-to-sell product with the IAMMTM which although still in the early stages of commercialization seems to be a promising product. They are also involved in mining rights and various rare earth mineral projects.

The firm seems to have a high level of innovation and perspective for future developments within the green energy and ammonia industries. It still remains to be seen if they can cash in on their existing product and how future projects develop.

Whatever you think of AMMPF stock, we always recommend investors construct a highly diversified portfolio with alternative assets. Portfolios with allocations to precious metals, real estate, and hedge funds have a much lower level of overall risk. 

Bottom Line

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Gino D'Alessio

Gino D'Alessio is a Broker/Dealer with over twenty years experience in various OTC markets such as Bonds, FX and Derivatives. Currently a Financial Markets and Investments Writer & Analyst