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Absolute waffle RNS.

It would be far better to issue a RNS to inform the market how this important drill is progressing rather than start to award warrants to staff who are I am sure paid quite adequately already.

And it might help if they waited to see if this drill is actually going to be a monster discovery, or even a discovery at all before committing to anything.

As for the growth of Power Metal, what certainly hasn't grown over the last year or two is the share price. The last time Molopo was drilled the share price was between 2.5p and 3.5p while currently it is languishing at 1.5p. And before this current campaign gave the share price some upwards momentum, it was as low as 0.80p making the last few years achievements look almost non existent.

Of course, this may all change overnight, though nothing is certain in this game.

I see that there are 7 drippy posters recommending a post that says 'Patience is required'. Drip on.

Patience, my a*se. No, what is required, as I have posted, is a drilling update to say that the drill has reached the target zone successfully and is about to enter the important target area, with maybe an approximate time schedule for reaching TD - though this could obviously change as the drill progresses.

Either this important drilling update has been missed, though for no apparent reason, or the drill has not yet reached 300 metres - which seems unlikely.

Sorry, but all of your responses are absolute and total rubbish.

The fact is that the market has not been given a drilling update at an important stage of the drill - or else they haven't reached the pre main target pre target area yet, which is very unlikely considering how close to the previous drills this one is.

There are no NDA's or third-party interest at this stage, besides to give a drilling update at just sub 300 metres, as they have done before on both Molopo Farms drills, does not and would not involve any price sensitive information.

It doesn't matter but it would just have been very sensible and the right thing to do.

Too many unecessary podcasts and not enough attention to what needs to be properly announced by the management here.

It should have been an absolute formality to announce that the drill has safely reached the target zone, on time and on budget.

Not sure why we have complete silence from the ongoing drill here. Both previous drills at Molopo - I-14 and I-6 - have had drilling updates at just under 300 metres and further updates at depth before the final drill depths were announced. Surely it is not very clever to change the procedure for this new drill.

I-14 took 12 days to reach 283 m (15th till 27th October 2020) and I-6 took from 19th till 30th November to reach 286 metres. With the prospective pay to start at around 300 metres, surely it would be sensible to do the same now. This target should have been reached around the 5th or 6th of October.

Why change the previous routine?????????? This complete silence is unnecessary and certainly not a very clever move.

No, Minchin has turned from a lion to a mouse.

And he knows they won't be drilling in Jan or Feb because of the rainy season so the whole business of the rig audit has been one big show to keep the shareholders happy. Now he has proposed an alternative rig and start date. I know which one I will back and it won't be the one with the Jan/Feb 2023 start date.

No, I have never heard of a rig audit before - or certainly not one that has taken 4 or 5 months even though this audit was apparently 80% completed by 2cnd August.

For some reason that is not immediately apparent and the complete opposite of their previous drilling campaign, HE1 management appear to be continually 'playing for time' and happy to throw the drill start date down the line with all sorts of lame excuses.

If the Kenya rig has passed this rig audit why does David Minchin mention an alternative rig?????

There doesn't appear to be any real commitment here by the management.

The rig audit is now completed - not that I have ever heard of such nonsense before - and after a process that was first mentioned at the end of May.

Then we get this comment by David Minchin, Chief Executive Officer:

"An alternative rig has been identified which would be capable of undertaking our drilling programme at our Tai Prospect in Tanzania. However this rig is not available until Q2 next year and hence remains as a standby option."

Excuse me, firstly is the availability of a rig such an issue in the first place? It certainly wasn't when they drilled there before.

Now they have just mentioned that they might not even use the Kenya rig as another is available, though drilling with the new alternative will not then be until Q2. At least the later drill start date will see HE1 past the rainy season, though if this RIG No 2 also needs one of these previously unheard of Rig Audits then they might just manage to miss the 2023 drilling window as well if they try hard enough!!!

Why mention this alternative rig at all in the RNS? Maybe because they don't think they will get the release paperwork to take the rig out of Kenya - "Export requires approval from Kenyan authorities but is compounded as all parties originally involved in the import of the drilling rig must also sign release papers. While there can be no guarantee given that required release letters will be forthcoming,....." - not that the rig is doing much while it is sat around in the yard in Kenya - that is apart from being so idle that it is becoming so much of a risk that it has required a complete audit of every working part!!!

Beware - Q2 has been mentioned as an alternative start date if they don't want to use the rig that has just been audited for months on end. Don't say the market hasn't been warned.

I think from the previous assay results it is nickel, platinum and gold rather than copper - though gold is as good as copper and yes the mineralisation should be visible.

Meanwhile POW already have a nickel discovery as they own a chunk of FCM (First Class Metals) which have announced some high grade nickel/copper assays from their first hole in their West Pickle JV.

Preliminary assay results return:
o 3.4% Nickel Equivalent ("Ni Eq") over 3.7 meters (2.3% Ni, 1.8% Cu, 0.45 g/t Total Precious Metals ("TPM") (Pt+Pd+Au)) in hole TK-22-059
o Including 6.8% Ni Eq over 1.8 metres (4.8% Ni, 3.7% Cu, 0.87 g/t TPM)
o And 9.4% Ni Eq over 0.6 metres (8.2% Ni, 1.6% Cu, 1.62 g/t TPM)

Marc J Sale, First Class Metals CEO commented:
'The reporting of the initial results from FCM's West Pickle Lake prospect JV, add additional evidence that a new district scale nickel (copper) sulphide discovery is emerging on our North Hemlo property.

Furthermore, as indicated by Palladium one the prospectivity remains open to the west, ground held 100% by FCM.

Given only the results of the first of twelve holes have been reported and the visual estimation of other drill holes, particularly hole TK-22-70 are equally encouraging FCM anticipates continued support for the potential of the project.

We eagerly await further assay results and the results of the BHEM (Bore Hole Electro Magnetic) survey which should enable better definition of the conductor (sulphide) 'plates' and allow further drilling to focus on zones of potential mineralisation.

FCM continues to explore the North Hemlo block and currently efforts are focus in the target area between the West Pickle Lake prospect and the Dotted Lake prospect of Panther Metals, 10 km to the south west.'

I'm not too sure what I should be trying harder at?

Obviously, I thought that he should/would have but I had not seen it. All is good. Chill out please.

Oh, yes he did. Thanks, I had missed that amongst all of the exciting newsflow.

The silly man couldn't even be bothered to inform the market that he is doing a presentation. If it wasn't plastered across the top of this page no one would even know about it.

Let's hope he bothers to turn up!!!

I agree cash is a bit low and that was the situation as of 30th June 2022, but if the management say that they have enough then we can only take that as the state of play. Maybe the 23% of net profits after tax from Fair Bride is going to make the difference here as previous revenues from production have always been on the low side and barely covering day-to-day running costs let alone drilling and assaying.

Going concern
As at 30 June 2022 the Group held cash balances of £1,239K. A small operating loss has been reported for the Group, however, as at the date of the release of the consolidated financial information, the Group's assets have been and continue to generate revenues. The Group has continued with its exploration activities in Australia and recently completed the Phase Two drilling programme at the Racecourse Prospect.

The Directors have assessed the working capital requirements for the forthcoming twelve months and have undertaken the following assessment.
Management have reviewed the cash flow projections for the forthcoming twelve months, based on the current operations in Mozambique, Australia as well as the corporate overhead. The alluvial operations continue to generate modest revenues and as with alluvial operations the presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month. The Group expects production at Fair Bride to increase during the coming months with the Group due to receive 23% share of net profit after tax.

Based on the assumption that Fair Bride operates within its targeted parameters and no new business is consummated, the Directors do not anticipate the need for funds to be raised in the twelve-month period from the date of authorising the consolidated information.
As is common with junior mining companies, the Company in the past has raised finance from shareholders for its activities, in discrete tranches to finance its activities for limited periods only and further funding would be required from time to time to finance those activities.
The Directors therefore continue to adopt the going concern basis of accounting in preparing the consolidated financial information and therefore the consolidated financial information does not include any adjustments relating to the recoverability and classification of assets and liabilities that may be necessary if the going concern basis of preparation of the consolidated financial information is not appropriate.
On this basis the Board believes that it is appropriate to prepare the consolidated financial information on the going concern basis.

It clearly says, as CB has said before: the Directors do not anticipate the need for funds to be raised in the twelve-month period from the date of authorising the consolidated information.

Of course, the problem here, and the reason why the share price is 14p and not 50p, is that when the management do finally get around to tackling the production figures they actually go down by 33%.

And it not as if the management can bluff their way through it on the hope that production will soon increase as the figures are right out there for everyone to see.

Oh well, let's hope they can get production back to previous levels - 60,000 bopm - soon and even increase it to new highs.

ATB

It would certainly help the share price if production is brought back to the levels of a year ago - circa 60,000 bopm - before they actually set out to increase production above these previous highest figures.

Looking at the production figures, which I have not done before, it is not difficult to see why the share price has fallen to new relative lows over the last couple of months. Last year, after completion of the acquisition, monthly production was between 58,000 and 60,000 bopm for the 3 months August-October. June and July this year production was barely over 40,000 bopm.

Am I correct in thinking that the lower production figures for June and July are solely due to workovers, and production halts on some of the wells to facilitate these workovers, rather than a decline in production?

Cheers howezap.

I'm thinking that Colin Bird might take his time for a while to see if the price of copper increases as this could make quite a difference to any sale price.

To others - I wouldn't worry about XTR finding a buyer for their 'world-class' asset. This isn't South America, Russia or even Africa. Australia is as good as it gets for a safe and booming jurisdiction and Australian companies like to buy big assets that lie in their own country and they are not afraid to pay a fair market value for them. Besides, who knows, if AA opt out and the For Sale sign goes up we might have another EUA style rise.