Member Info for Opp_Hunting

Anyone following DRC news closely? Rumours in the market that DRC has temporarily banned the export of Copper and Cobalt. Can anyone confirm what is happening over there? Must be a case of government officials trying to nudge mining companies for some payoffs to line their pockets. I thought DRC was a mining friendly jurisdiction.

Hello to all Boarders,
Any idea if DRC volcano would impact POW Kisinka project in any way. There was a plan to start a drilling program here, not sure how the volcano situation impacts it.

Also, anyone keeping track of the Book of Work and timeline dates for each of the projects progress?
Its hard to get a consolidated list of timelines for each project with so much going on @ POW.

Volume seems to be waning and going back to its normal levels in the past 4 hours. It might lose momentum on Monday and retrace a bit. Strong resistance at 50p, but might form a trading band between 42p-45p unless there is renewed buying pressure or +ve news on one of its projects. . .
The problem with this company is its extremely low communication levels and hardly any engagement with its shareholders. price overhang might be entirely due to poor market engagement model - its as if the promoters are deliberately uninterested in explaining the hidden value in this company. Huge information asymmetry between reporting periods.

Hello All,
Todays trading volume was unusually high....this ticker has not seen this kind of volume in the past two years.
This does not seem to be just retail investor induced, it might be that there is significant Institutional buying here...big fish accumulating looks like!!
Agreed on most of the comments here. My fair value for this was around 85-90p as it stands today, without any significant news announcements from Platypus and co. This ticker is massively undervalued.

Hello All,
Anyone attending the AGM call from here? Its a good opportunity to ask questions, I see that many of the boarders here have significant shareholding on this counter.
Admiral70, Aquaesulis, PowerfulPete, RT007, Worzel anyone?
Also, would be good to know if anyone has sent across questions to shareholders at powermetalresources dot com ? Would be good to have a consolidated list here today so that we know what has been covered and what other questions we can raise.
I see that StellaBob has sent across an email asking about if there is any way current shareholders will
be preferred in the future spinoff IPO's - a valid question to ask.

Please let us all know if any of you have sent across the questions already to POW.

Thanks

Hi All,
I am new to the PMG board but would like to know your views on the below:

1) This company seems to be significantly undervalued on paper, the sum of parts - Gas, Oil exploration & forays into renewable energy/land bank etc - valuation should have been at least around 75-85p as per my calcs. (not considering the investor exuberance in the renewables space). Given the Oil price uptick and the a potential variance from the mid term Oil:Gas price ratio, this should have been a super stock by now.
Any idea why there is an overhang here? Is there any good reason (corp governance, missed targets etc) for the dampened sentiment here?
If not, then this might be a potential takeover target in the near future given its prospects.

2) Any reason for the delay in reporting quarterly results ? This is long overdue now, I was hoping there will be more information in the reports but the company communication with its shareholders seems to be a bit tardy, even for an AIM listed company.

3) Given the lack of info from the company, are any boarders here tracking company's progress on exploration and on its renewables energy efforts? Any info in this regard is greatly appreciated.

Thanks for your time. Good luck to all.

I just received this proxy voting notification on interactiveinvestor.
Chance for investors to express their opinions.

1 TO RECEIVE THE REPORT AND ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER, 2020
For Against Abstain

2 TO RE-APPOINT SCOTT RICHARDSON BROWN AS A DIRECTOR
For Against Abstain

3 TO RE-APPOINT PAUL JOHNSON AS A DIRECTOR
For Against Abstain

4 TO RE-APPOINT THE AUDITORS AND AUTHORISE THE DIRECTORS TO DETERMINE THEIR FEES: PKF LITTLEJOHN LLP
For Against Abstain

5 TO AUTHORISE THE DIRECTORS TO ALLOT RELEVANT SECURITIES
For Against Abstain

6 TO DIS-APPLY PRE-EMPTION RIGHTS
For Against Abstain

7 TO RESOLVE THAT THE COMPANY BE AND IS UNCONDITIONALLY AUTHORISED TO MAKE MARKET PURCHASES
For Against Abstain

Any thoughts on the board here?

Remember that POW is not equivalent to just one startup but a multitude of startups under one management - so the chances of a success is much higher given the management experience in this sector. We have still a long way to go in terms of junior resources mining lifecycle which can loosely be defined as below:
Land Bank & Pre-Drilling Exploration --> Drilling Exploration --> Discovery --> Define Mineral Deposit & Resource estimate calculation --> Preliminary Economic assessment --> Pre-Feasibility Study --> Feasibility Study --> Finance & Production plans --> Mine construction -> Mine operational.

We know we are in the first two stages of the above lifecycle.
Now as per my analysis, the best step in the cycle for investors to get into junior mining stock will be the Drilling Exploration stage, during which any half-good news will make the sp run up 5x-7x. Upon completion of each of the above steps successfully, the sp will jump up by 1.5-2x. If the PFS/FS stage throws up positive surprises (multiple by-products on the same mine etc), then expect a bounty. I do not know what the future has in store for POW but this will be the best time (and stage of development) to get into a junior explorer in my opinion (DYOR pls).
Reading between lines in few of PJ's interviews, POW would definitely get larger mining partners/offtake partners involved after PFS/FS stage. I do not think that PJ wants to see be part of the mining story(Develop & run a mine), POW clearly wants to own the exploration space which is high risk and high reward. So all we need is one good set of assay results and faster route to PFS stage on at least a couple of projects here.

I am still very much hopeful on Molopo as well as Haneti. Hopefully PJ is making meaningful bets on the Canadian side, Australian Gold JV has a much higher probability of success given the area and its history. If the sp persists below 3p-3.5p come this April, then I would be certain to top-up on my ISA accounts ;).

Wow this message board was subdued for a couple of days, looks like it has erupted suddenly today.
Guys, there is no point venting out on message boards, let us all use this board for valuable information sharing and of course for airing genuine concerns.
I have been following Junior resources & early stage BioTech for few years now and they both have similar characteristics wrt business maturity timelines and risk-reward. I have never seen any stock in these sectors rise up 20x in the first few months, these things require time to payoff. There are valid points on both side of the arguments here and I believe people here(msg boarders) hold significant stake (0.1% to 0.5% of total shares outstanding shares) in the company from a retail investor perspective, so perhaps hurts if we have bought into it an average @3.5p and the sp tanking more than 25% . But these are not your typical dividend paying stable businesses... the risk-return profile is essentially like start-ups but with less liquidity risk(i.e., you can enter and exit whenever you like). I would suggest waiting for a few months before deciding to sell as the projects have just about taken off now, still significant news flow to be had in the next 6 months.
I agree to the point that perhaps PJ has given out too many warrants @ 1p and 0.75p (he probably feels the same as us) but remember these were issued to entice HNI's during fund raising especially during a 'not so good times for metals' in general. There was no market recognition for commodities mega cycle back then, so would not be fair too berate PJ for what he did to seed much required capital into the company. On the other side, there are questions on PJ taking on more projects without delivering on previous projects - the way I see it is that PJ did not expect the kind of warrant related cashflows into the company initially but now that he has got excess cash over and above that's required for current projects, he is putting it to good use by choosing new projects carefully. I would say his plan is better than the cash slowly being burnt on excessive salaries of the Board and additional unwarranted headcounts in the company.
I hope he has planned the projects and cash management well for it to last at least to take one of the projects to Feasibility Study stage if the discovery comes good, so that we don't go raising funds and diluting again.

One might argue that the opportunity cost in a seemingly strong bull market in commodities is high since you are missing out on good dividend paying, cashflow rich mining stocks that are going up 30-40%, but that is a personal investment decision to make.

I believe a few of us are in and around Greater London area, so would be great if we can make it to the AGM in March. It will be a really good opportunity to ask questions and clear any doubts.
No point in getting personal on these message boards guys, we are all better than that.

Just read an article on Shares Magazine that puts the valuation @ 200p. I have not done any deep research on this company but looks like the Management is confident about its business lines. So looks like guys on this board should be happy beavers, given the deep value in the company assets.
================================================
Elementis Management points to the fact it is the owner of ‘differentiated resources with high scarcity value’, including the
world’s only commercially viable high-quality rheology grade hectorite mine. It also highlights the fact over 80% of earnings are now from Personal Care, Coatings and Talc, which benefit from ‘fundamentally attractive’ margins and GDP growth,
with the divisions achieving an average adjusted operating profit margin of around 15% over the last three years, with
its medium term group adjusted operating profit margin objective being 17%.
Elementis also argues that specialty chemicals companies with margins in the range of 14% to 17% currently trade at 17 times to 19 times 2021 EV/EBITA , and that applying this range to average operating profit for the Personal Care, Coatings and Talc businesses over the last three years implies a valuation of 163p to 190p per Elementis share.
The company adds that this excludes its Chromium business, which could be valued at an additional 35p per share,
implying a group valuation of 200p or more per share as the firm ‘delivers on its medium term objectives’.

Hey Bonkers,
I'm sorry but I don't see Power Metals being similar to Zinnwald or Bushveld. I have been following those two for some time now. The only thing that seems to be driving Bushveld prices is a spurt in a Vanadium price off late, but the company does seem to have Corporate Governance issues....beware of any company which has their top management caught unawares of their tax positions.
Reg Zinnwald, it seems to be an one shot "all or nothing" play just like any other AIM junior resource company. I see a small advantage here - the proximity to battery manufacturers in the heart of Europe and low capex mining.
I see your point on Bacanora though - it all comes down to implementation this year and next. Ganfeng controls 30% of the company, so funding should not be an issue in the future even if there are cost escalations but minority shareholders might get burned in such an event.

With POW, its still early stage exploration but highly diversified across metal types as well geo locations. A lot of news to follow in the next 6 months on this counter on multiple fronts. Fingers crossed for a major discovery!!

I can't see the trades for the last 30 mins yet (post RNS), yet to be updated on the Shares Trades list on this website. But look out for it once its updated....my hunch is that there must be pretty big £10-£15k late trades today....the RNS was, shall we say, tooooo insightful for it to be not traded on ;)

There you go, Warrants update RNS that clears up a lot of confusion. This is exactly what I like about PJ - he does clarify valid concerns from shareholders.
Warrants are the main source of fund raising for POW and given the quantum of warrants, it does affect the valuation of the company. So it is necessary for us shareholders to be on top of the warrants or any corporate action around it. Good to know the annual report for year ending Sep 2020 is coming soon.

Hey AquaeSulis01,
Something here does not make sense wrt warrants. Just browsed through the capital structure on the Annual Report for year ending Sep 2019 in detail and it says specifically that "No warrants were issued to Directors in the year ended 30 September 2019". Then it goes on to say the below :
"6,000,000 of the warrants issued in the year ended 30 September 2019 were issued on 15 February 2019 and have
an exercise price of £0.05, the remaining 205,000,000 were also issued on 15 February 2019 and have an exercise
price of £0.01. All warrants issued on 15 February 2019 have a subscription period to 15 February 2021. All
warrants vested at date of issue. "

Does that imply only 205 Million warrants were issued that had an expiry today and around 50 Million warrants failed to exercise? I wonder why anyone would let their warrants expire when the sp is more than double the strike price.
Annual report here:
https://www.powermetalresources.com/Uploads/2020-05-20-0164-Power%20Metal%20Resources%20FY19%20Report%20&%20Accounts.pdf

Hopefully we will have the new annual report for Sep 2020 soon. Looking at the price action in the past 2 months, I am gonna stick with my prediction that this sp is going to drift slowly up to 4.5 - 4.8p even without any news on drilling results. If Molopo hits the bulls eye, then we are looking at a potential 5x here.
Anyways the real deal in junior mining is when there is a favourable offtake agreement signed off and PJ is still a long way from there. But if there is one company that can beat GGP's success story this year, then it is POW!!

Where are the warrant exercises? If the above information about near 60 Million warrant outstanding with 18 feb expiry date is true, then there is just one day left for the exercise. I as a shareholder, would not be particularly sad if the warrant holders have forgotten about it :). It would also be great if Paul comes up with the annual report as soon as possible - will help us validate the latest capital structure.
I was hoping for Molopo drilling results to be announced this week, but someone posted earlier that there is still a couple of weeks left for that. It will be the first real test for POW sp.

Yup thats correct Plface, seems like a good corporate strategy to get rid of the overhang from African Battery Metals days as well as to prepare the ground for shareholder distributions in the future.
It would be great for investors if "spin off" strategies involved distribution of (a part of) shares in spinoff companies to individual shareholders rather than holding it within POW...this will help shareholders make their own decision whether they want to hold onto a certain project exposure or not.

All the three related companies - POW, RRR and Kavango are set for a good multi-year run. I am still a bit sceptical about RRR given its bad management track record but with PJ on board with its main Australian prospects, it might be worth looking into.

Looks like very low volumes here today. Was expecting huge activity from warrant exercises here this week but so far sp has held up well.
Aquaesulis01 has done a very good job of keeping track of the warrants outstanding based on which we were expecting around 59 Million warrants with 18 Feb expiry to come into the market. But given that there is not much news on the warrants front, are we missing something here - maybe miscalculated the warrants o/s ?
I would be very happy if the warrant holders have forgotten about it and fail to exercise at all :), but a deluge of even 20% of those 59 Million shares in open market squeezed within a week will put further pressure on the sp :(.
Hopefully there are enough buyers to gobble up those warrants exercised.
Expecting +ve results on Molopo soon.

Correct, assuming that warrant holders would sell at least 20%-25% of their holdings to cover most of the capital they would have invested when they exercise. Unless the warrant holders/exercisers are company directors or insiders, one would assume that an investor would want to risk-off and sell part of the warrants he has exercised to reclaim the capital he would have paid into the company account.
We have seen this happen on this ticker off late, there is no reason why the share price is still subdued even with such amazing news flow. This would have run up easily to 4.5p without any warrant exercise pressure.

I doubt if it is gonna go any higher in the next two weeks, given that there are still nearly 64 Million warrants to be exercised by 3rd week of Feb. I would be very happy if it holds the 2.5p mark until all the Feb warrants are done away with.
But yes, todays rally gives a glimpse of what would happen (probably every couple of days) post Feb 2021 - extreme buying pressure with hardly any sellers leads to 5-8% daily movement in a junior.

ha ha , not sure where one finds this Zak the Wiz and his charts Wiltshireman, but looking at the price action and volume pattern here, I have a feeling POW is gonna creep up to 4.5-5p post 22 Feb - the rationale being most of the 18Feb expiry warrants would have been exercised by then and there will be very less sellers on this ticker. Looks like many of us have accumulated 0.1%-0.5% POW stocks here. Add to it the fact that promoters of the company hold significant stake which are not "traded" actively on the market. There will be buying pressure even without any news on this counter, post Feb.

POW and Kavango seems to be massively undervalued at this point in time.