Member Info for Tray556

"It's great to be able to report continued progress across the uranium portfolio as we eagerly look forward to starting drilling in around 10 weeks.

We will be drilling more or less continuously through to October and are very excited indeed about the prospects of a commercial discovery. We will shortly be laying out a detailed drill programme, which will set out the expected timing of multiple drill results over that period.”

Yet the entire Uranium JV is priced in at less than £0 … go figure!

Just been on the RRR website / Companies House and looked at all the DRC comments from the latest financial statements. Dec 2024 interim results due to land by the end of March 2025.

Dec 2024 - 30-06-2024 annual report - "Some 30 months after the conclusion of the arbitration hearings, we are pushing for release of the award."

Mar 2024 - 31-12-2023 interim results - "We continue to devote time to dealing with one important matter"

Dec 2023 - 30-06-2023 annual report - "We expect a favourable arbitration award, but have awaited the arbitration result for nearly 18 months, a period which has not been without incident. This was much longer than expected, but justice is not always swift.

Mar 2023 - 31-12-2022 interim results - "Much time over the last months has been spent on dealing with one important matter, the DRC legal action"

Dec 2022 - 30-06-2022 annual report - "Despite recent frustrations – we spent a total of some nine recent weeks in two spells in Kinshasa for the arbitration and in waiting for the result – the year is one that has seen great progress on this front, if not a conclusion."

April 2022 (late submission) - 31-12-2021 interim results - "A new development in the period under review was the beginning of legal proceedings to enforce our rights in one of our copper-cobalt joint ventures in the Congo"

All quite laughable really when you read back over the Chairman's comments. The comments are the same today as the were back in 2021/22. The company has diluted shareholders into oblivion over the past few years. More dilution to come you would suspect with the company in default to POW by at least £250,000 now.

Cash in bank = £7mil

Listed Investments (GMET + warrants, RRR, FCM, AAJ) = £9.3mil

30% stake in the £20mil valued Uranium JV with UCAM = £6mil

TOTAL = £22.3mil (which ignores Saudi ventures, GSAe, RRR debtor, FDR pre-IPO holding etc.)

Market value just £14.1mil today. Bizarre stuff.

£7mil cash in the POW bank, 20% holding in GMET who are also cashed up, 30% holding in the Uranium JV which has £10mil cash in the bank and will be drilling multiple projects in a month or two and no POW debt.

Can't really think of another sub £15mil valued junior exploration company on planet earth right now with access to this much working capital.

Great post Parfett 123. Unfortunately, in the wise words of Mark Twain, "No Amount of Evidence Will Ever Persuade an Idiot" ....

Be interesting to see what move POW make shortly if/when the £250,000 cash doesn't materialise. POW fortunately don't need the cash now they have £7mil+ in the bank, but I get the feeling the POW board won't be messed around much longer on this deal without really upping the ante.

Last update from RRR at the end of Feb was that they had to loan £25,000 from an existing shareholder .... it's not looking good for POW receiving £250,000 today!

Hope Sean ups the ante this time on RRR .... RRR have pretty much taken the mick with this Aussie gold asset from the second the deal was signed.

The deal was signed off over a year ago now .... RRR have failed to meet every financial hurdle on time.

The RRR lifestyle co's on AIM need to disappear before we see any sort of AIM recovery in the junior mining sector.

New Tamesis broker note available on the POW website today following on from the partial £9.2mil GMET sale last week. They comment:

"Focus now turns to use of proceeds but suffice it to say we are astonished the share price of Power has not reacted more positively given such clear crystallisation of value and the strong endorsement of POW’s business model which is to incubate mining projects, explore and crystalise value. In this case, POW have made a 10x return from original investment."

Looks like even Tamesis cannot believe the 50%+ discount to NAV (Tamesis have the discount at 61% currently per their workings) that is on offer here with such a strong cash balance on hand. The AIM market continues to ignore the positive moves being made by POW so it's back into "top up territory" for me.

Further to BanburyBoy's point around a possible placing at 0.03p "So a billion shares raises just £300,000."

RRR owe POW £250,000 IN CASH by 19th March 2025 per the latest RNS which states "The £250,000 convertible loan notes issued to POW at Completion and expiring on 19 December 2024 will instead be repaid in cash on 19 March 2025."

If RRR don't have £25k, they certain won't have £250k.

Looks likes another billion shares will be thrown in the mix just to pay POW. That's before RRR cover their own salaries, listing costs, auditing costs, NOMAD fees etc. Could see 10bil shares in issue here by the end of 2025 at this rate! What a mess.

The worry for RRR is that POW are now cash up after selling half of their GMET shares for £9.2mil last week. I think many on AIM would love to see a POW earmark a couple of quid to take RRR to the cleaners. At the end of the day RRR signed the RRAL deal to take it from POW and haven't managed to keep their end of the deal on multiple occasions. POW have been unbelievably kind to date but that won't last forever in my opinion.

PowerfulPete - We have had this conversation many times, you have admitted to buying POW at 3p+ back in the day (circa £30mil market cap at the time, 60p a share pre-consolidation) when POW had nowhere near anything to show for the value. It had a few quid in the bank and a couple of licences. That was the clear as day time to avoid buying POW as the market was seriously overvaluing POW on every single metric.

Now POW have £30mil+ of tangible value from financially savvy business deals yet the market is valuing POW at just £15mil. But you don't think POW are performing well as a business just because you are heavily in the red .... now is the most obvious time to buy POW stock since they became POW back in 2019. The disconnect between market value and actual value is at an all time high. The POW cash balance is also around £7.5mil. A cash position everyone of POW's peers would dream of in this market. The market is just in dire straits.

But of course, in the wise words of Mark Twain "no amount of evidence will ever persuade an idiot" ....

Exactly that ICB888, you risk everyone else's cash to progress your own assets in a prudent financial fashion.

GMET has been a success story and with hindsight, investing in GMET directly was the better option. But not everything POW spin out will be a success story. So if you invest in POW, you effectively hedge your bets in a sector that is extremely risky to say the least. If you want a high risk play, you avoid investing in POW but you could see your capital disappear within a matter of months. With POW, they slowly but surely increase the value of the balance sheet year on year. I get it, it's totally boring for most on AIM who cannot hold shares until the end of a trading day. POW the long term financial play in this sector.

Any sort of share buyback or dividend here should see the SP move in the right direction. I wouldn't be totally against it, but personally I would like to see POW deploy most of this cash on progressing the spin outs and gathering cheap opportunities from the 95% of junior exploration companies who are struggling to keep their lights on. The IPO route for spin outs seems very tough in these markets, but can we get into bed with a few more decent JV partners for example like ACAM?

The aim here is to survive off investment profits alone whilst 95% of AIM companies have one route to finance, a massively discounted placing. POW just secured a multi million profit from their GMET sale to keep the business financially solid for a good few years without a single element of dilution. Can Sean roll the GMET profits into another profitable investment in due course?

The end game here is for POW to have almost no overheads whilst having several chunks of equity in 20, 30, 40+ spin outs (IPOs, JVs etc.). You effectively then just pay a few members of the POW management team to prudently oversee and sell investments and acquire new ones. This is the model, not expensive exploration campaigns on POW owned projects. POW will do just enough to spin them out and then leave the spin outs entities to take on all the risk whilst it costs POW nothing.

Pete - "So far (as the last two did) failed, in producing anything to sell." - POW just sold half their GMET for £9.2mil in cash. It cost POW circa £2mil to put the whole thing together. Your comment is wild! They just crystalised a large profit from a partial sale of GMET and have a cash position other junior exploration company could only dream of right now.

You posted something yesterday about it taking a long time to get a project into production .... POW WILL NEVER PRODUCE ANYTHING!!!

How can so many POW holders still not understand what POW are trying to achieve here with this model .... it's crazy!

As I suspected, you simply don't understand the POW business model at play here.

Any IPO spin out or a JV is what I would describe as "indirect exploration" .... it's indirect because it costs POW holders nothing as the assets are all funded via a bank account that isn't POW's. POW remain active without spending a penny with this model.

POW will spin out the Saudi projects .... if they don't it will be going against the POW business model. I hope FDR is spun out soon too and the £7.2mil is put to work to create the next 3, 4 or 5 future spin out ventures.

The model here is to spend very little on a set of assets, position them for a spin out, create the spin out and then sell your stake in the spin out for more than it cost you to put it all together.

Take GMET - POW spent around £2mil putting together the GMET asset for IPO, they positioned the spin out via an IPO and once listed, it was worth circa £4.4mil to POW on the IPO listing day. They sold around half their original stake 22 months after the IPO went live for £9.2mil cash yesterday. The remaining 20% will be sold at a later date.

Job done with GMET, excellent proof that the model is working and now POW are financially secure for multiple years. Absolutely nothing to dislike and complete win for POW.

POW will now be looking to set up the next "GMET" success story with the proceeds from the GMET sale. A few more similar successes and POW will be sat on a £100mil balance sheet. It takes time and immense effort to put these things together. Rick Rule has commented many times that he is invested here because POW are willing to put in the hard yards and he isn't anymore as he reaches his twilight years.

Sol001, sounds like you are looking for a pure play high risk exploration investment .... you are totally in the wrong stock with POW. POW are playing the other side of the junior exploration market. The are a low risk, longer term steady financial based play. POW will grow the balance sheet slowly each year without risking the business on ridiculously high risk exploration. The spins out will do all that for free whilst POW watch on and sell into any success stories. Many more spin outs will be coming online very shortly with this £7.2mil cash in the bank.

Sol001 sounds like your comment below is a bit of a pop at POW for "not putting in the work in the field".

POW won't do much work in the field directly, its all about picking things up on the cheap, packaging them up into some sort of spin out by spending the absolute minimum and getting a separate management team in place to look after those assets and retaining a percentage of that spin out so it costs nothing for POW moving forward apart from a bit of a diluted holding. It's prudent proper business ran by a CEO with an eye for the finances. 99% of AIM CEOs have now idea how to financially run a business properly.

GMET 20% retained (after banking £9.2mil cash yesterday), UCAM JV 30% retained (after UCAM stumped up £10mil for 70% of a few U licences that cost POW almost nothing), Tati JV 25% retained (after plans for a "free" gold processing plant are in place). These are just a few examples with many more to come of proper prudent business. And that's created the scenario of no placing now coming in POW for multiple years.

If you think POW are going to spend the remaining £7.2mil cash from the GMET deal on big chunky exploration programmes, think again. The £7.2mil will be deployed on picking up things on the cheap whilst this sector is on it's knees and then those assets will be positioned into various spin outs to crystalise value. The cash will allow POW to accelerate their portfolio of spin outs and backfill more opportunities.

The exploration and any fireworks happens IN the spin outs, not in POW directly .... its nice to hear Oliver is putting the work in the field because that's the POW model. POW get 20% of the work & comms Oliver puts out. They have just realised a huge profit from Oliver's work after POW created the GMET IPO in the first place.

AIM isn't used to proper business transactions like this and POW is now in a unique cash position and head and shoulders above all their peers in terms of financial stability.

Time for POW to remove themselves from AIM .... I would love to see that happen as this marketplace is dire.

Why did he realise multi millions in investment profits? Maybe because that's the POW model in action? Maybe because he wants to secure the future of POW financially for the next 2-3 years? Maybe because in an financially logical mindset its the prudent thing to do? How can you not be impressed with that move? Because the "SP doesn't say so"?

POW cannot control the SP (as much you and most other shareholders think they can!). POW have set out a model, they are sticking to it and its sending the balance sheet value considerably higher. Management are doing almost everything right here and I'm very impressed with what they are achieving and they are heads and shoulders above their peers in terms of financial stability now. There is just no fresh capital following into the AIM market and POW's share register just doesn't understand the business. Therefore the SP will not move until things change.

Market liquidity is the thing that will move POW from here, it will allow the clueless POW holders to easily get out and plenty still seem to be queuing to leave the stock.

Sol001 - You said the other week that taking GMET shares off the table and turning them into cash would move the SP. It hasn't

The AIM market is the AIM market and it's in dire straits. POW have made a few seriously strong financial moves over the past 6-12 months (Uranium JV, GMET sale) yet the market doesn't react and actually devalues POW further. It's not poor POW management performance, its a terrible AIM market which in my opinion POW need to remove themselves from ASAP.

We can go through all the excuses in the world as to why the SP hasn't moved. The business as a whole is growing and has now doubled in size since Sean took the helm. The balance sheet proves this and now a big slice of the balance sheet value is in cash as well at a time where none of POW's peers have a penny to spare.

How many other AIM junior exploration companies valued at sub £20mil have £7-8mil in the bank account, are in a 30% JV with billionaires which has a £10mil exploration war chest, are in discussion with the Saudis regarding a multimillion pound spin out & have almost £10mil in other listed investments??

POW could double in value here to 30p (circa £35mil market cap) and I wouldn't sell a penny as the business would still be hugely undervalued in my eyes.

AIM in a mess, and until a hint of fresh capital arrives or POW somehow remove themselves from AIM, the illogical SP movement will continue. The POW float is in such poor hands it's embarrasing but that's what happens in an illiquid market.

Should say below "30% exposure to a £20mil Uranium JV which has £10mil cash in the bank for exploration this year"

£9.3mil in listed investments

£7.5mil in cash

Debt free

30% exposure to a £10mil Uranium JV

A Saudi financing solution being discussed

A pre-IPO holding in FDR worth £2.5mil

And you can get exposure to it all from here with POW sitting at just a £16mil price tag - madness!

POW have made a huge profitable return in GMET, they are financially stable for the next few years, they still remain the 2nd biggest holders in GMET, they can now use the cash in a weak market to acquire cheap opportunities.

A great transaction to POW and hats off to Sean & the team as POW put themselves in a unique position being cash rich in an AIM market that is totally on its knees.

Wow so many seriously weak comments on here today, just sums up the state of AIM and POW's share register.

I've said it for a while but I thought we were getting to the end of the number of POW shareholders who still don't understand the POW model. It appears that many POW holders still think POW can control the SP for example.

Multi millions have been added in value since Sean took the helm and even POW's own shareholders think he's doing a poor job .... deary deary me.

As per my previous post, POW desperately need just a hint of liquidity to return to the AIM market in general so the totally clueless investors who still hold POW shares can finally get out.

Donkey Oatey - You are disappointed in the current POW management team?

How can anybody be disappointed in POW's current management team? They are adding millions and millions in value here. Sean has at least doubled the value of the POW business since he took the helm all whilst dilution has been kept to a minimum. £7.5mil+ in the bank in a few weeks and completely debt free. How can anyone with a brain cell think POW management are doing a poor job here?

POW management cannot control the SP and the dire AIM market (as much as the AIM punter thinks they can). All they can do is add millions in value which they are doing on a year on year basis here.

POW is in very safe hand and a much lower risk approach to the junior exploration investing game in the hands of current management.

All POW need is a bit of a liquidity boost from the AIM market in general. It will attract fresh capital and allow the clueless investors who still hold POW shares to finally get out.

Agree ICB888 - I don't think POW would have put the "partial sale of GMET" RNS out if it wasn't a done deal.

The only two (unlikely) scenarios I see that could potentially breakdown the terms of the deal announced last week would be as follows:

1) The GMET SP doubles so POW pull out for obvious reasons.

2) The GMET SP halves so UCAM pull out for obvious reasons.

Expecting to see confirmation next week / end of February at the very latest.

£7.5mil+ in the bank, £9mil+ of GMET stock, no debt and the FDR & Saudi spin outs about to advance in the near term you would have to think. All for just a £16mil market cap which puts POW head and shoulders above their peers. Will the market catch on? It has to at some point.

To add to Banbury's post below, RRR owe POW £250,000 in CASH shortly too (I think they still owe POW another chunks of cash too but cannot be 100% sure!)

Per the POW 11/12/2024 RNS:

"The £250,000 convertible loan notes issued to the Company at Completion and expiring on 19 December 2024 will instead be repaid in cash on 19 March 2025."

Considering £250,000 is around 10% of the RRR market cap today .... you can expect another 10% dilution as a minimum in the next 5 weeks ...