Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yes one can when they are selling blocks of 500,000 to 1,000,000 shares without there being any near sized buyer to offset it. Hence the Red Rock sell off that dragged on the SP for months.
The vast majority of warrants are now at strike prices above this so we should have some head run to move unless Thor Mining are liquidating their share holding post Pilot Mountain agreement.
I wouldn't say 500km+ is near.
Given PJ's purchase history at any available opportunity it reassures me he is dealing with market sensitive information on top of the Pilot Mountain info. Given the sheer size and activity level of POW's portfolio it doesn't surprise me! Question is, which portfolio project will it be for, Tati results, silver peaks asset disposal, further acquisitions? At the very least I am expecting an RNS for the start of drilling @ haneti, given KAT's SP it looks to be on the way!
It comes with a huge amount of Power Metal shares and warrants, cash upfront with the ability to make more on the holding in future rally's. Seems useful for Power to mininise upfront capital outlay and useful for Thor as it opens up the opportunity to make much higher returns if they believe Power can run alot higher.
Shortly is not a deadline!
They have never given a deadline apart from the mine plan that was released when they stated it would be.... Nice try though.
It is entirely possible that should this campaign yield decent results and POW have a great next few months with a couple of asset disposals (silver peaks possibly) they could renegotiate the JV to drive the project forward in full knowledge that KAT would have to do another raise to progress any further.
POW and KAT split the costings as per the ownership via JV. KAT 65% paid for by the £800k raise in November, POW 35% via working capital possibly from £1m raise in November or via warrant money. So we should see at least this drill campaign through to completion prior to another raise from KAT being required.
When Paul goes quiet & there is a pause in the RNS releases, that is when you know something is going on behind the scenes!
Warrants have enabled the business with no cash flow to build their current portfolio and develop structurally into the Power Metals we have today. Why invest and get upset about them when they are currently an integral part of the business until projects are in a position to spin out/dispose of to bolster cash reserves in an alternate way?
Yes it appears worse currently due to the sector wide pullback making it painful for most holders but if Power didn't have access to the cash from the warrants there would be far more frequent and therefore worse and more painful diluting market raises.
Personally I am topping up my ISA wherever possible and stashing these shares away with a multi year time horizon. Look what the board have manage to build in some of the worst market and operating conditions ever seen in many generations. Future Rio Tinto, why not!
Every day someone is selling blocks of 500,000 shares. I would assume it is Red Rock cashing in their holding and as they are below the 3% threshold they no longer have notify the market. Once they are clear it will alleviate the downward pressure here.
They are releasing it later today.
I feel this is being overlooked massively as a great move by the Power team. Power own a vast amount of shares that they could liquidate to raise capital, in Katoro Gold, Kavango, Red Rock etc etc. However this would mean selling these at yearly lows and nullifying the potential future value on the next bull market run. To then have the ability to raise at a closing price above the recent lows with warrants set at a 100% premium it has enabled POW to gain an extra £1 million into their war chest to put to work without having their trousers pulled down. I do not think anyone can fault Paul for how he has built Power Metals off the last £1 million raised, bring on the next levelling up of Power.
Red Rock selling 20 million or so shares has been hampering it recently. The cash raised from the warrants have been POW lifeblood.
They used a Hilti drill, it was not a full drill rig set up! However to get those results from pretty much surface makes you wonder what on earth are they sitting on!
Not just Potential Worzel7, Pilot Mountain is a JORC complaint resource with a 8 year mine life and plenty of further potential for expansion.
POW owns 35% of the project not KAT or KIBO. Therefore their percentage ownership of the project does not get diluted when the parent company raises. It will dilute the holdings in KAT that came as part of the deal but this has minimal impact to the core asset that is the project.
Is a JORC complaint resource that under its own focused wrapper could be huge. Shares at a 47% increase from current SP, warrants @ 4p to minimise upfront cost.
POW now own a proven, production viable resource. Not just more exploration licences. Golden Metal is shaping up to be a brilliant spin out!
Due to the extended period of turn around time than the previous set of drill results, I am of the belief that Silver Peaks is likely to be the next project for disposal. Now in what fashion remains to be seen!