Member Info for ICB888

This morning’s RNS shows that the Uranium JV continues to grow its portfolio of targets. The previous poster is complaining that nothing will be done there until 2026 and asking will we receive news of a target and drilling this year in any of the targets they have acquired.

I suggest he reads the CEO’s comments in the previous Taits Hill RNS last week:

“ Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:

"It is very pleasing to be able to report more progress on our well-funded exploration plan. Jack and his team are doing fantastic work establishing drill targets, which, weather permitting, we hope to get started on over the next few months. I look forward to being able to update shareholders further as these high-impact exploration programmes start to take shape."

UK Investor Magazine states:

“ Guident may prove to be the jewel in Tekcapital’s crown. Tekcapital is preparing to list Guident at a crucial juncture for autonomous vehicles created by the wider adoption of the technology. Peers listing in the US are attracting bumper valuations, and everything points to a very favourable IPO for Guident”

I realize that UK Investor promotes TEK but I think it reasonable to assume TEK share that view as I do. Guiding as a private company has been valued at US$18.1 million in TEK’s accounts for at least the last 3 years. There can only be a revaluation if an event occurs such as a fund raise which hasn’t happened but obviously an IPO on NASDAQ would be such an event.

Clearly in the last 3 years Guidant has made great progress in a marketplace for autonomous vehicles that is growing rapidly.

Common sense would suggest that Guident is worth multiples of US$18.1 million and I will be interested to see if Simon Thompson has a view on this when he comments in the IC. I suspect that it will be the Guidant IPO that will provide TEK with cash to distribute to shareholders ,following the reaffirmation of their special dividend strategy..

UCAM are highly unlikely to pull out as they are POW’s partner in the Uranium JV so there is already a very good relationship. Regarding the Uranium JV Sean had this to say about Friday’s RNS:

“ Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:

"It is very pleasing to be able to report more progress on our well-funded exploration plan. Jack and his team are doing fantastic work establishing drill targets, which, weather permitting, we hope to get started on over the next few months. I look forward to being able to update shareholders further as these high-impact exploration programmes start to take shape."

I imagine that Sean will wait until UCAM completes the purchase of the GMET shares before hitting the interview circuit to talk about what POW are going to do with the £7.5 million and also talk about the Uranium JV and Saudi. They sad they hoped to sign the Sale & Purchase Agreement within 10 working days of the RNS on 11th February, so it could be this week,but if not it should be next week. Tungsten companies have become very popular in recent days so UCAM won’t want to delay or the price may have to go up. I suspect this deal was being discussed before China’s announcement which has already moved GMET’s share price higher than the price of the proposed deal, they have therefore announced the deal before it goes any higher. A US Government grant for example could turbo charge the share price at anytime.

Yes Rick Rule via Term Oil Inc holds 4.07%. You will find details of the 3%+ shareholders on the POW website.

SVML’s Next Steps were set out in the December Interim Report issued on 30th January 2025:

“ Over the course of the next quarter, Sovereign will advance the Definitive Feasibility Study (DFS), provide updates on the rehabilitation component of the Pilot Phase, publish an upgrade to the MRE, continue with further graphite testwork to support potential offtake discussions and further its community and social development programs in Malawi.”

Rio essentially knows all this or has enough knowledge and experience to accurately predict the outcomes. So a bid could arrive at any moment from Rio or another major. Rio currently has a strategic advantage due to its knowledge of the project from its active participation on site over the last 2 years. As the DFS progresses and more information is made public other large miners will gain more knowledge to enable them to formulate bids. It would make sense for Rio to bid early while they have a clear knowledge advantage over the other Majors who will be very interested in such a large Tier 1 asset.

It is important to note that with £ 2 million of debt paid off and £7.5 million in the bank any concerns about further placing and dilution can be put to bed. That alone should give a boost to the share price. POW trades at a ridiculous discount to its NAV and with nearly half its current market cap in cash it will be in a very strong position to take advantage of future opportunities. This is a vindication of the incubator model and we still retain a substantial holding in the company that will provide £ 9.2 million. I imagine Rick Rule will be impressed and he should see a profit on his investment when POW rerates in the coming weeks.

When a singe trade is more volume than the last 4 trading days put together it is interesting and worthy of comment. Let’s see if it encourages more large buys as news gets closer.

The exposure to GMET will be halved but in respect of the half that has been sold pretty much the full current value of those GMET shares has been realised. If that value is reflected in POW’s share price once the transaction completes, a strategy of buying GMET at a discount will have been vindicated. In addition you will still have undervalued exposure to GMET in the 19.2% holding in GMET still held by POW.

It is indeed very positive that as GMET moves back towards its all time high a strategic investor wants 20% of the company. Strategic investors are looking for substantial returns on their investment so they are clearly very bullish on GMETs prospects. It is a big vote of confidence that other investors should take note of and as they are a strategic holder they won’t be selling any shares so the free float will remain the same as when POW held the shares. IT IS A WIN WIN FOR GMET and POW which I am pleased about as I am a shareholder in both companies.

A 10.15% rise on volume of 798000 is a very promising start to the week following the strong rise in the USA on Friday. It would seem more investors are becoming aware that there aren’t many US tungsten opportunities and GMET is probably the best one. There is a lot of press in the USA regarding the ban by China of exports of Tungsten of which they have 85% of global supply. The US don’t produce any Tungsten at present so speed to production is now of vital strategic importance.

I hope Oliver will consider bringing in a major to finance and partner on the project to fast track it to production in the way that SVML brought in RIO who took 15% and are now at 20%. Speed is now of the essence to become the lead US producer.

Decent volume in London this morning of 420000 has moved GMET Up 4.62%. Not as much volume so far as we saw in the USA on Friday and not such a large rise but moving in the right direction. It will now be interesting to see what happens on the OTC this afternoon and whether we will get further news this week.

GMET USA OTC Trades on Friday

The 577000 GMET shares traded in the USA is very interesting. It would rank as a good volume day for GMET in London where the volume on Friday was 122000 and is 20x the usual volumes on the OTC. When the OTC listing was upgraded Oliver said he thought trading by US investors would become a significant part of the volume and shareholder base. Perhaps this latest move by China has finally caught the attention of US investors. It will be very interesting to see the volumes in the UK tomorrow morning and then the US volume in the afternoon.

Perhaps the higher POW volume was related to the GMET rise on the OTC which took the share price in the USA to the equivalent of 39p compared to 32.5p in the Uk. POW is a very cheap way to get exposure to GMET.

The 577000 traded in the USA is very interesting. It would rank as a good volume day for GMET in London and is 20x the usual volumes on the OTC. When the OTC listing was upgraded Oliver said he thought trading by US investors would become a significant part of the volume and shareholder base. Perhaps this latest move by China has finally caught the attention of US investors. It will be very interesting to see the volumes in the UK tomorrow morning and then the US volume in the afternoon.

The article from the 6th February is about the effects of China choking the supply of Tungsten and other critical metals. It starts by mentioning a Canadian company whose shares were up 41% in 2 days and then goes on to mention GMET:

“ In the US, tungsten hasn’t been mined commercially since 2015 and the nation has counted China as its biggest source of imports. Guardian Metal Resources Plc is developing a mine in Nevada and recently acquired another asset nearby. According to CEO Oliver Friesen, the Pilot Mountain project is expected to come online in three to three and a half years.

“It’s such a critical time right now, and really the US needs a domestic source,” Friesen said in an interview, adding that things could speed up if there are potential further tailwinds from the Trump administration. “We do believe we are in a strong position ultimately, at some point, to receive some type of funding to support the developments of our projects.”

China has already put export restrictions on gallium, germanium and antimony. That pushed up prices of the niche metals — which have crucial uses in many Western industries — and analysts also expect a similar price trend in the relatively small and concentrated market for tungsten.

“International prices should rise on that,” said Huang Yuting, an analyst at Mysteel Global, adding that while China consumes most of its tungsten output, exports have gone to countries such as Germany and Japan.”

Much higher volume than usual today of 1.5 million from 16 trades. Sean has been very quiet this year which is very uncharacteristic. Hopefully increased volume is in anticipation of a major update from our CEO.

What is the nice movement you are seeing on the OTC. According to my iPhone and google finance it is down 0.45% on volume of 5000.

In response to US tariffs of 10% on China, it is introducing Export Restrictions on a number of rare earth metals including Tungsten. China is the main global supplier of many of the rare earth metals. This will put even more pressure on the US Government to get the Grant to GMET expedited.

Should have said “where Canada possibly could NOT be relied upon as a strategic supplier”

The about to be implemented tariffs for Canada would seem to make strategic metals produced on US soil an even higher priority than they already are. The US recently gave a grant to a Canadian producer of Tungsten but GMET is still waiting for a grant. In this new situation where Canada possibly be relied upon as a strategic supplier there must be a strong case to expedite GMET’s grant, particularly as the new mine can be brought into production even quicker than Pilot Mountain.

GMET was originally called Golden Metal Resources and was going to be a gold play. Gold was reported in a recent RNS and just reminds us that GMET has many strings to its bow. The potential to be mining several commodities just keeps making it more and more attractive and the market cap is just £41 million.