Actually that's semi-gloss, still wet. It looks similar to the photo above that one when dry, but a little more glossy. I buy all my POR from All Car Parts in Canoga Park, CA. They are a major supplier for much of the country and they stock British car parts as well (and know what they all are), so I like giving them business. You can also order from the POR15 web site.
It can go on bare metal and light surface rust. The instructions say that light surface rust is actually better than bare metal for adhesion. The advantage of POR15 other than it's incredible durability is that it bonds to the metal. If you actually manage to scratch through the stuff, which is difficult, any rust that forms on the exposed metal will be unable to travel beyond the scratch because it can't get between the metal and the POR15.
They also sell a phosphoric acid solution called Metal Ready which you are supposed to prep the surface with first, then rinse with water. At that time you will see flash rust occur, and this is desirable. Here is a shot of the YB tank above, just after rinsing off the Metal Ready.
Notice the silver bare metal in the first shot. Now notice the rust colored metal in the second shot. This is what happens as the surface dries. I used a shot with a brass tag in it for color comparison.