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I think investors who have been with pow for a while are frustrated with the sp at moment and hope we can get more investors onboard who see the potential as we all do; especially when we have a ceo like Sean who is on site and trying to attract more buyers in. Looking at this interview, it reminds me of what attracted me to pow in the first place. Let's hope this ends up being huge for 2024. Have a great weekend all :)
Https://www.youtube.com/watch?v=d7lmBuwm6Bs&ab_channel=StockBox
Great answers Tom!
Sol, if you look over just the last 1 month, at the prices right now Gmet is 26.4% up and POW is 38.2% up (just quickly using investing dot com), I feel your frustration in how far the pullback in POW has been but we are up this year!
That last message should have said "sell the 50% for £50mil" in my GMET example.
The POW model struggles to work when the markets are poor, but as soon as the market clicks into gear the balance sheet will swell and the company will become far more appealing to the bigger boys. That's why I am personally positioned here.
The POW model is that dividends & share buy backs will happen once there is excess working capital. The likely source of the excess working capital will come from fireworks within the IPO companies which POW hold substantial stakes in. Any successes, POW sell down their investments and take the cash back to the POW bank account.
Lets take GMET for example. Solid looking early stage Tungsten asset, $mil's of DoD funding arrives in 2024, Pilot Mountain is drilled and the Tungsten mineral estimate is enhanced. GMET suddenly a £100mil company. POW at that point my hold 50% .... sell the 50% of £50mil. That is POW's working capital requirements covered for many years. The excess will then be distributed back to shareholders. Of course, that is just one of POW's spin out companies.
2022 & 2023 have been awful years for the junior exploration market and therefore IPOs have been like tumbleweed. GMET one of the view few IPOs to go live in 2023 and are trading higher than their IPO price.
UEE & FDR will both be live this year, I'm 99% sure of that. It removes risk from POW, and gives them cash free rides in multiple exploration companies moving forward. You can probably add many more spin outs over the years too. If market conditions for exploration plays are more favourable, the spins out will happen at a faster pace too.
That is not to say that POW may have some commercial successes in directly owned assets as well such as Molopo & Tati. I personally prefer to see the IPOs go live as Molopo & Tati are cash intensive and higher risk. Taking GMET as an example again, POW do absolutely nothing and don't even open their wallet, yet they have a 61% claim to any GMET rewards in effect.
When you state below "The IPOs are doing well for pow's balance sheet yes; but that's not raising the sp at the moment." ... I read that as "HUGE BUY OPPORTUNITY". When the business is moving into a £35mil+ valuation with £500k in the bank and a handful of licences like in 2021, that is the total opposite of a buy opportunity, but that's the AIM punter for you.
Big money also moving in at the 1p zone as well as the well known successful investor Rick Rule taking a £1mil position at 0.85p last year. Both are also clear buy indicator for anyone investing logically.
Currently sat here with a large position now at an average of 0.81p. More than happy with Sean's performance to date in testing market conditions and the POW portfolio as a whole.
I like your confidence Tray and I've been holding for a while now. Let's see the sp for pow when the new ipos are released in the coming months and see if it goes up alongside them. The Ipos are doing well for pow's balance sheet yes; but that's not raising the sp at the moment. We have great news recently, but have very few investors (27 so far today, which is very low compared to other aim companies out there) and as I mentioned too many shares in issue. They did mention in a previous message that they would look into dividends or share buy backs. Who knows how long that will be. The more profits they make from the ipos I hope they do this and this will definitely attract more investors.
I hope you are right that we will end up like GGP. Drinks on me if it does haha
I think you may be just looking for a few excuses there sol001 for the recent pullback. Yes the POW float is quite large and it does suffer from a lot of loose shares at times. But I didn't see GGP having any problems a couple of years ago with their 3.5bil float at the time moving from 4p to 40p.
How would you suggest that Sean looks at this? Sean is pushing on the IPOs. GMET for example are doing very well for POW's balance sheet. UEE IPO should be online within a matter of weeks and FDR later this year. All of which adds to the POW balance sheet and when lock in agreements comes to an end, it gives POW options for non-dilutive finance which in turn controls the share float to some extent.
POW now in a position where cash in the bank + listed investments (FCM & GMET) + pre-IPO investments (UEE & FDR) alone equal circa 65% of the POW's entire market cap. With Molopo also getting drilled, solid updates from Tati, Saudi plans materialising and 15 other U assets to progress outside the UEE IPO (plus a lot more in the POW portfolio), its very hard to see how this isn't a huge opportunity for junior exploration investors.
Plenty to like here and I'm sure Sean will just keep pushing the business on as he has been doing for the past 12 months in what has been extremely poor conditions for the POW model.
The POW model getting all its ducks in a row now, just ready for when the market starts giving junior exploration plays a chance with a fair wind.
Will continue to add at any price sub 1p after the business was financed to the tune of £1.3mil by those with deep pockets. Any selling sub 1p is completely illogical in my view.
One of the main reasons for the sp here not rising like the sp over GMET is the shares in issue. Pow has too many shares here for the amount of investors and buy amounts (2.21b) GMET (85.62m) Sean needs to look at this imo. The sp over there is rising and pow is making more and more money, but we are still dragging behind. When FDR and UEE is released it will be the same. Pow will be pocketing the profits and Pow sp will be standing still. When are we going to feel the benefits from these Sean? With the profits they are making from GMET etc they should do something about the amount of shares in issue or get big investors to buy on market instead of releasing more shares at dirt cheap share prices
While the drill is turning ria will be ramping
When the drill has turned, you'll wish you'd have learned (from all the previous dusters)
LOL.
IMHO, GLTAH and most of all DYOR
While the drill is turning will you be earning lol
While the drill is turning l’ll be yearning lol
Sorry Sol001 not Ria
Yes Ria, that’s how he makes money.
That's understandab. Same if Rick Rule wanted to take his profits that would be understandable to
Aim has aways been a trader’s market, a good RNS buy in m, wait for the rise and sell. This SP won’t rise again until there’s a commercial find then it’s a question of how much it rises until a sell off. That’s making money. ( never be afraid to take a profit)
The holding in GMET could be the whole MC of POW in a few weeks
Agree.
I guest its a buying opportunity. If they drop another 10-20%, I might just break my own rules and top up.
Tango; if we had the amount of investors that some other companies have on Aim, then we probably would be
Its a crazy market.
I personally put a value of 3p for POW.
This is depressing watching the sp. Especially after the good news from tati and molopo. No bad news and we are back below 1.00. We should be at least around 1.50 with both these positive news releases.
Apart from the FDR and UEE. What other news are we expecting to come through?
I can do sol001 if the package deal is good and profitable....lol
Ria will you be giving out the rugby commentary this weekend
Golden Metal Resources plc (LSE:GMET), focused on Nevada, USA, updates its Pilot Mountain project, believed to hold the largest undeveloped tungsten resource in the US, with additional potential in garnet deposits. Historical data and exploration suggest approximately 40% of mineralized intervals at Pilot Mountain contain garnet, potentially significant for project economics. The company plans to appoint a garnet specialist for detailed analysis and is finalizing drill permit applications. CEO Oliver Friesen highlights the unexpected economic implications of garnet recovery alongside tungsten, emphasizing potential cost reduction in processing. Further studies will explore the impact on project economics.