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Currently, approx. 90% (circa £15.5mil) of the POW market cap is now covered by listed investments (GMET & FCM), pre-IPO investments (FDR & UEE) + cash in the bank.
The other 10% (circa £1.5mil) is the value the market has given to the following:
- 15+ 100% owned Uranium licences in and around the Athabasca basin (directly held by POW & not earmarked for IPO)
- 100% ownership of the Tati project with near surface gold grades and the possibility of nearby tailings processing (grades up to 47g/t so far from RC drilling)
- 88% ownership of Molopo - current 800m drill programme in progress with results most likely late spring/early summer
- 75% exposure to GSAe Ltd - A potential future revenue stream for POW and tailing processing facility
- 49.9% ownership of NBGC PLC with several gold licences in and around the Ballarat mine area in Australia.
- 35% ownership of Haneti (65% owned by KAT)
- 30% ownership of Silver Peaks (70% owned by a handful of private investors)
- 20% ownership of New Horizon Metals. An early stage exploration company looking to IPO on the ASX in 2024.
- MoU signed with Ministry of Investment of the Kingdom of Saudi Arabia
- Possible closer relations / JVs with KAT as POW & ex-POW executives take key positions in KAT.
- Future IPO of ION Battery Resources containing several 100% owned Lithium and Graphite licences in Canada
Almost all the above list in for pretty much free. Undervalued is an understatement at these prices in my opinion!
Another bums rush like the beginning of last month to keep this share alive
Pow mentioned on todays Sunday Lunch about one hour in.
Give it time! DEC did a is listing and the US volume now rivals London on many days. The point is that most US investors won't buy London listed shares. Also re GMET there are almost no freely traded shares available. They are in sticky hands (like mine). Even a modest domestic interest from domestic US investors will have an impact. I await the outcome of the grant funding application for the PM tungsten.
@pikeman - fyi I'm a shareholder in GMET and we're already listed in US on OTC market - the same one POW is talking about and there's hardly any volume and that's for a company totally focussed in Nevada - don't count on US investors getting overly excited about POW.
Tray556. I totally agree. The UK microcap audience is tiny and fickle particularly for mining shares with demand driven by domestic macro conditions. The N America audience is massive in comparison and POW has via GMET and FCM some compelling NA assets which are of interest to N American investors.
Probably 80-90% of these can't or don't buy non-USD denominated shares. One mention by Rick Rule of POW on a podcast after the listing will generate huge interest. How many US investors would like a piece of GMET!!
I suspect that the shareholder register will migrate rapidly across the pond, far faster than anyone will realise.
As for the GSA investment, a fantastic deal structure. I suspect they have at least 1 possibly 2 deals 'nailed down' in Oman (or why go there first) and Saudi. I expect plenty of RNS activity with positive news over the next few weeks from POW,GMET and FCM.
Why anyone would sell under these circumstances is beyond me. The consolidation will just widened the potential investor base dramatically Rick Rule is no fool and probably the biggest influencer in the junior mining sector in the USA and he obviously likes POW a lot. No wonder companies are giving up on AIM and the UK markets. Like everything else here they are disfunctional.
I will be adding more again on Monday!
A 1:20 share consolidation wipes £1.5mil off the market value of POW I see today. So the market now values POW almost 10% lower than it did yesterday because a simple maths calculation was applied to the number of shares in issue.
Fully understand that in a lot of cases a consolidation can lead to a huge dilution push from the company, however, POW have the following to suggest they are not going down the dilution avenue with this share consolidation:
1) A £15mil+ balance sheet which on 10th May 2024 they will have access to all their FCM & GMET shares totalling around £8.8mil currently. Plenty of cash if POW need it. Certainly enough to not go cap in hand to the market anytime soon.
2) They can prove even in poor markets that they have the connections to get away a premium placing. This was demonstrated simply a matter of weeks ago at a time every AIM company is raising funds at 15-20% discounts on a good day.
3) The business is signing low risk deals to open avenues for potential revenue streams. Only time will tell if the GSA acquisition yesterday is going to be fruitful, however, if its not, the only cost to POW is the initial £75k outlay and nothing else. That outlay was all in shares anyways and resulted in about 0.4% dilution. The risk to this deal isn't worth talking about, the potential upside is and that's enough for me.
If the market which already values a business with a £15mil+ balance sheet and several directly owned interests including potential revenues streams at just £17mil, and now simple maths calculations are also having a negative impact on the market valuation, then I'll be adding even more to my holding here on this bizarre SP weakness.
Added a few more today sub 0.8p and will continue next week.
No matter how much SW talks up that Acquisition I can't get excited about it , and honestly how much cash can something that cheap generate I really don't see it reducing the probability of returning to the markets for cash.
He's quite fidgety in interviews, isn't he.
On the share consolidation as I postulated earlier it sounds like Rick Rule brought pressure to bear. Ok its a criteria meeting thing for US OTC, not that I've ever seen the US otc bring a share to life. So ok, it's a meh from me.
I don't think these machinations will attract institutional investors they're attracted by opportunity and sometimes the mcap plays a role, depending on fund rule.
Thank you for sharing the link jigger. I thought that was a very upbeat interview with Sean presenting in a very fluent and positive manner. That should serve to steady a few wobbly holders.
Good interview today and Sean explains the consolidation in a positive approach for the OTC listing. Looking forward to hearing more as well from the Oman and Saudi trip and hopefully more investors coming onboard
Consolidation issue now fully clarified by the CEO.
All very straightforward, rational and positive in my view.
Reading between the lines, I think Rick Rule will be actively marketing POW, once it hits the OTC market (especially utilising the GMET\US tungsten holding). 👇
https://www.proactiveinvestors.co.uk/companies/news/1042218/power-metal-expands-into-sustainable-metal-extraction-with-gsae-deal-announces-share-consolidation-1042218.html
Lots to look forward to here.
Great comms by SW – I don’t think you will find many other CEO’s who communicate so rapidly to shareholders concerns and queries.👏
Onwards and upwards (hopefully).🙂
IMHO
GMET only has 85 million shares in issue and they seem happy with the way the sp has been going. It's the same situation for them, if there is a sell it drops alot. As long as we have regular news coming through as Sean mentioned in the last stockbox, then hopefully there won't be too much selling and we will be going up
If a bit of housekeeping, share consolidation, has the side effect of clearing out some weak longs, I am all for it. That would appear to be the case from todays' price action.
Share consolidation has never worked I can name many on AIM which have done it and their SP is even lower when compared with the price prior to consolidation
If the CEO thinks by reducing the no of shares issued by x20 is going to entice II’s to invest in the company he is dreaming
There are still far too many shred in issue even post consolidation
What will drive the SP up is to find the metal in measurable quantities and have JV’s with big boys in the mining
This has still not been the case for many years barring the couple of IPO’s where the SP of one has doubled cause they can show measured resources
The classic example of why the share consumption doesn’t work is the SP today down over 8% with very little between those selling and those buying
That's the game unfortunately. The sp can go up or down for any company on the market.
I think with the amount of complaining I've done on here with shares in issue. Maybe Sean has been reading this chat lol
Very intresting.
A lot about Saudi and they are there all next week.
I would not be surprised if there are a few deals signed when they are over there.
Sorry SOL I don't think many were confused by the RNS it's a straightforward consolidation RNS - what's causing people to sell (I think) is their experience/anticipation (rightly/wrongly) that upon consolidation the share price is likely to drift lower.
You can argue that is not the case, but that opinion seems to be driving the SP at this moment.
I was confused by the rns first of all and then finally worked it out. As some mentioned the value (market cap) doesn't change unless sp goes up/down. So when it's consolidated the market cap will reflect the new sp. Which I've mentioned should be around 16p for a 17mil market cap. As it stands. i think the confusion in the rns has caused some people to sell. It should really give a bit more detail
Smart move imo and for the reasons given. A lot of people get put off when they see so many shares in issue, and it does affect share price movement, as stated in the RNS. Good time to do it now as well, ahead of better market conditions and with the newsflow to come.
Sol, that sounds correct.
If the SP really has fallen because of the consolidation news, fill your boots I’d say.
After consolidation we will have 110,500,000 shares in issue. Going by the market cap. 17mil. That would be a sp after consolidation around 16p imo
Consolidation can take place when a share is n free fall and the company is not doing well.
This is not the case with POW.
The share price has gone down in line with the broader market.
The company is doing well and the SP will rise as the market sees the value thats there.
GEMT and FCM are a big chunk of the valuation and they both look like they are due for a rise in the near future
The share consolidation will have no impact on the value of the company ie the market cap of the company on the day of the consolidation will remain the same as will the value of individual holdings. Just read the RNS:
“ Proposed Share Consolidation
The Board is of the view that it would benefit the Company and the Company's shareholders to reduce the number of Existing Ordinary Shares in issue by consolidating the Existing Ordinary Shares on the basis of 1 New Ordinary Share of 2p for every 20 Existing Ordinary Shares of 0.1p each ("Share Consolidation"). This is expected to assist in reducing the volatility in the Company's share price and enable a more consistent valuation of the Company, making the Company's shares more attractive to institutional shareholders.
The effect of the Share Consolidation will be that shareholders holding Existing Ordinary Shares on the Company's register of members at 6:00 p.m. on 26 March 2024 will, on the implementation of the Share Consolidation, hold:
1 New Ordinary Share for every 20 Existing Ordinary Shares held on 26 March 2024.
The Share Consolidation requires the approval of the Company's shareholders by way of ordinary resolution at the GM ("Consolidation Resolution"). Accordingly the Directors unanimously recommend shareholders to vote in favour of the Consolidation Resolution to be proposed at the GM.
As all shareholdings in the Company will be consolidated, the number of ordinary shares held by each shareholder will be reduced as a result of the Share Consolidation, but the percentage of the total issued ordinary share capital of the Company held by each shareholder immediately before and following the Share Consolidation will, save for fractional entitlements, remain unchanged.”
Particularly note that it is being done to reduce volatility in the share price and enable a more consistent valuation of the company and make it more attractive to Institutional Shareholders.
Doc. If they valued the company previously at 3.3p at current shares in issue. That would make it now 66p. So by today's sp then it should be around 17p after consolidation to be in the same situation with no loss. From my example of 10mil shares at todays sp is £85k; 500k shares x 17p would be £85k
In my experience consolidation is often a tool used when a small company has been funding directors pay by repeatedly issuing shares with no possibility of maintaining the value for the existing shareholder.
However, I do not see this as the case with POW. There are two successful IPO's (GMET and FCM) in the holdings of POW.
two more to be completed and launched. A new opportunity with yesterdays purchase and a series of very prospective opportunities with results of drilling or surveys just around the corner.
The previous CEO (PJ) is still a major holder of shares and the present CEO is by his own confession a Finance Guy and therefore may be better at reading the tea leaves than most of the AIM mining CEO's who love holes in the ground.
When a big find is reached a smaller share issue does help to raise the price as demand cannot be met by the trading community as LTH hold rather than trade.
I am optimistic for the reasons above but WTFDIK
GB