RE: GMET RNS6 May 2024 09:52
I don't invest in the junior exploration space in general. I don't believe the odds are anywhere near worth investing in 99.9% of plays out there.
Never invested in Sula Gold etc. Had a small position when PJ took the helm in POW as I liked his CV to date and financial background and his ability to stretch POW's limited working capital on acquiring many projects on the cheap (Pilot Mountain, Athabasca licences etc. for starters) whilst nobody wanted them.
Since Sean took the helm I have increased my position by around 500% in POW. I like that Sean is looking to spread the chips across multiple plays whilst retaining a large enough holding in each venture in order to benefit down the line. Sean is clearly building on the start PJ gave POW. Hopefully we see those building blocks start to grow shortly with talks on these U asset deals, Saudi IPO etc.
No one in their right mind would walk into Caesars Palace in Vegas and bang all their chips on number 28 of the roulette wheel. Well that's your standard Junior exploration company which so many clueless AIM investors walk into on a daily basis and wonder why the walk away with no returns. POW are spreading their chips across multiple numbers of the roulette table. Yes, the rewards will be lower but still substantial but at least you aren't going home in tears due to dilution, failures etc after a short period of time.
If you have a £15mil balance sheet and the business is telling you in its latest RNS releases that they are working on some U deals with deep pockets, the biggest IPO to date is coming via the Saudi RNS etc. yet the market values you at £13mil, then for me it's shouting BUY. Yes the SP is supressed, but that's Mr Market currently. When Mr Market acts this irrationally you buy, when it acts irrationally and overshoots the other way in terms of valuations in this space you sell. Unfortunately, most AIM investors do that opposite.
The market will eventually react, I've just made sure I'm in before it does and that's all you can do as an investor.