Member Info for Tray556

In two weeks time POW will have:

£7.5mil in cash

£9.5mil in listed investments (remainder of GMET, FCM, RRR)

£6mil of value in the Fermi Exploration Uranium JV (POW hold 30% of a £20mil valued Uranium JV, with £10mil in cash)

£2.6mil of pre-IPO valued stock in FDR which could come online soon

£0.6mil still due in cash & equity from RRR from the Aussie Gold deal

NO DEBT

The above worth £26.2mil alone.

To add to the above, there will soon by a Power Arabia spin out which will be "POW's biggest spin out to date" according to the POW CEO, a 75% stake in GSAe, a 25% stake in a Tati gold processing plant.

All the above for £17mil according to Mr Market today is damn right ridiculous.

Good point below Neredowell, there is being risk adverse, but fully agree with you that the market here is just now being plain dumb.

For me, the RNS today has nothing to do with what is going behind the scenes in GMET.

It's about taking some shares off the GMET table (which could go up or down) and securing POW's financial future for the next few years. This deal just does that and that has to be priority number one.

POW retain 20% of GMET so if GMET continues to go up, POW continue to get the benefit. it also puts circa £7mil in POW bank account and clears their loan note with ACAM in its entirely.

Debt free and half your market cap in cash when all your peers in the marketplace a scramling for cash and going cap in hand to brokers .... you cannot put a price on that and that is why Sean has executed this transaction today. It's excellent news and its proper prudent business.

Some crazy comments on here this morning regarding this RNS and just proves AIM is in a total mess.

Sean has just secured the financial security of POW in a dire market for the next 3 years+ whilst retaining 20% of GMET.

Sean as soon as he came into the role of POW CEO, IPO'd GMET in May 2023. In just 21 months he has crystalised a significant multi million pound profit on that investment.

Hindsight is a wonderful thing. GMET could go up or it could go down in the coming months. The POW CEO has prudently secured the financial position of POW for multiple years whilst still retaining 20% of GMET and POW will still be the 2nd biggest GMET holder.

There is almost nothing to be negative about here. This is a great move and proves the POW model is in fact working very effectively. In fact, it's one of the best RNS I have seen since I became a POW holder many moons ago.

GMET is just one moving part in the POW portfolio. POW will now be debt free and have £7.5mil in the bank to progress all the other moving parts of the portfolio including some nice surprises along the way I would imagine.

£7.5mil in the bank and debt free once the transaction proceeds. That is a huge achievement for a £16mil valued AIM listed London co.

£7.5mil is more working capital than POW have ever had access to (£3mil maybe the most in the past).

If the SP doesn't move up to fair value now (around the 30p zone), then it will do in due course as the £7.5mil should create some serious tangible news flow.

If GMET goes down, you've banked £9mil+. If GMET goes up to £1 a share, you've still got 20% exposure to the upside still.

It's the no brainer move for me and why I like this model with Sean at the helm

As things stand, the POW SP could double from here and still be trading at a 10-20% discount to its net asset value! It's quite literally unbelievable how the market is valuing POW at present and it's surely one of the biggest no brainers on the AIM market at the moment in the sub £20mil junior exploration sector.

As HawaiifiveO explained, no one understands it but I would argue that nobody WANTS to understand it simply due to the supressed SP. Most of POW's own holders seem to struggle to understand the model which worries me too. I find it extremely easy to understand and just a basic numbers game using the net assets of the business.

Just trading this stock up to fair value would give you about a 125% return from present values.

The value will shine through eventually ... but this is an absolute gift of a time to accumulate POW stock if you can in my view.

From a logical investing point of view, a £14mil market entry point into a company that has £30mil+ in assets is a fantastic entry point and it's quite unbelievable that the market is allowing the disconnect to happen. However, according to the market I am massively in the minority with that investing view point for some reason.

This has to be the biggest disconnect between market value (£14mil) and net asset value (£30mil+) that POW has ever experience on the market since it first became POW back in 2019.

Think you need to re-read my post Pete. My post clearly states "at current prices" you get more exposure to GMET via buying POW stock.

Further to my comments last week, if we take a £100,000 example GMET buy this morning vs buying POW.

£100,000 gets you 0.25% of GMET at the current mid-price of 32p. GMET market cap circa £40mil.

£100,000 gets you 0.65% of POW at the current mid-price of 13.375p. POW market cap circa £15.4mil.

As POW hold 43.2% of GMET, in the above example, £100,000 gets you 0.65% of POW x 43.2% POW's GMET holding = 0.28% exposure to GMET + exposure to all of POW's assets.

So at current prices if you buy POW, you actually get MORE exposure to GMET plus the exposure to POW's portfolio. It makes almost no sense to buy GMET here as you get more GMET exposure now by buying POW!

Just looking at that GMET £750,000 funding @ 30p the other day. Another great move from Oliver to secure further favourable financing at prices multiples higher than the IPO price but it does ask the following question to me.

So the £750,000 financing gave Premier Miton another 2% of GMET (they already hold GMET shares I think).

Now lets just say they took £750,000 on the market via POW shares instead. Of course an amount that large would have to have been taken in several bites over several days and would have likely pushed the POW SP up to say 20p in this market. Lets say for the purpose of this point that they would have taken £750,000 by the time they finished buying POW on the market at a 16p average. That would be circa 4% of POW the would have acquired for £750,000 worth of on market buys.

Now as POW hold 43.2% of GMET today (plus warrants), if Premier Miton bought £750k POW shares on the market instead of financing GMET, they would have had a indirect GMET holding via their 4% POW holding of around 1.75%.

My argument would be, that at current GMET & POW levels, Premier Milton have taken 2% of GMET, but they could have taken 1.75% via investing the same money in POW, but also had direct exposure to Uranium, Saudi Assets, FDR, GSAe, Tati JV etc. etc.

Just makes the investment case in POW far more appealing that investing directly in GMET to me at these levels, but the market currently doesn't think so and neither do Premier Miton haha

The enlarged share capital in FCM is soon to be circa 250mil shares (Per the RNS today "Seventy ninth will hold 128.5mil of the enlarged share capital representing 51.2% of the company").

4p a share is now a £10mil market cap based on the enlarged share capital from this deal.

Would be absurd for the market to value it at £10mil so quickly when the new controlling party has just taken 51.2% of it for £2.13mil but only my view.

General market sentiment towards juniors is nothing short of dire, so even juniors with a few mil cash in the bank are getting no potential priced in.

Seventy Ninth Group have just paid £2.13mil for 51.2% of the company. That's the new controlling party of FCM saying "we value this entity at around £4.1mil".

RRR raised £200k in October 24 .... if they raise over £200k, they trigger the POW CLN so looks like they have raised the £200k in October to stay under the CLN conversion threshold and given it all straight to POW (of course the RNS at the time said it was going to be used for another things but that's RRR for you)

The "other sums" include at least a £94k loan RRR owe back to POW for the funds RRR owed POW at the time the RRAL agreement was signed. Maybe plus interest as well as that's many many months overdue!

£250k CLN is now definitely due in cash in March 2025 per the latest RNS. So I make that:

£50k still outstanding (due Jan 25)

£94k loan outstanding (due Jan 25)

£250k CLN to be converted in cash (due Mar 25)

So the above is almost another £400,000 due to POW by mid March 2025. POW also have cheaper warrants now priced at the market price today.

The dilution nightmare continues for RRR like I've said throughout 2024. RRR taking 100% control of this RRAL asset is incompetence at it's finest. Would A Bell buy a mansion he couldn't afford .... not a chance. Would he do it with RRR shareholder funds .... 100%!

Of course, A Bell doesn't want POW taking any equity so will raise the funds on poor terms instead via his contacts (Oct 24 placing was at 0.0335p!!) ... if POW get loads of equity they get too much of a voice in the AGM for example and then A Bell's £150k+ a year salary comes under threat.

As Helpful states on here all the time "Do your own research" .... I have and RRR is certainly one to avoid like the plague.

POW's 45.2% owned GMET was mentioned in the NY Times today:

https://www.nytimes.com/2024/12/03/world/asia/china-minerals-semiconductors.html?unlocked_article_code=1.ek4.QQqI.QDKzdobomHjg&smid=url-share

"The Chinese ban on superhard mineral exports could provoke particular unhappiness in America’s national security community. That ban appeared to be aimed at Chinese exports of tungsten, which is vital for making armor-piercing bullets and shells, said Oliver Friesen, the chief executive of Guardian Metal Resources, a London company that is planning to mine tungsten in Nevada.

It will take close to three years to establish a new tungsten mine in Nevada, he said, adding: “We’re moving things along quite quickly.”

You don't see many AIM co's mentioned in the NY Times full stop! Both POW & GMET looking very pretty in the swamp that is AIM at present!

The market will catch on soon enough.

GMET mention in the NY Times today:

https://www.nytimes.com/2024/12/03/world/asia/china-minerals-semiconductors.html?unlocked_article_code=1.ek4.QQqI.QDKzdobomHjg&smid=url-share

"The Chinese ban on superhard mineral exports could provoke particular unhappiness in America’s national security community. That ban appeared to be aimed at Chinese exports of tungsten, which is vital for making armor-piercing bullets and shells, said Oliver Friesen, the chief executive of Guardian Metal Resources, a London company that is planning to mine tungsten in Nevada.

It will take close to three years to establish a new tungsten mine in Nevada, he said, adding: “We’re moving things along quite quickly.”

If a stand alone junior exploration play had access to a 30% Uranium JV backed by billionaires with £10mil cash in a pot which is expected to be deployed on multiple Uranium drill campaigns in the coming year, that company would have a multimillion valuation assigned to it.

With POW its all bizarrely priced in at £0.00. The AIM market acting extremely inefficient towards POW at the moment.

The gap between the clear value that POW management have been created vs the market valuation will close soon enough. The huge discount on offer here would be snapped up in a flash in any efficiently operating marketplace.

New broker note out from POW's new joint broker Tamesis LLP. It's a 16 page report (I cannot share it but it can be accessed via POW's website).

Target Price 30p so 90% higher from this current 16p level.

Broker notes to be taken with a pinch of salt, but some serious detail in the 16 page report to back up the 30p target.

So an RRR investor asks A Bell today on X "No more waffle or long broadcasts".

A Bell's response "A huge waffling tweet on an epic scale"

Couldn't make this stuff up.

I did some workings on the POW Telegram group over the weekend as to why I think the fair value here at the moment is around the 28p mark (I've just copied and pasted it so the formatting might be a bit poor)

This is where I currently see the POW valuation:

Guardian Metal Resources (45.24% holding) = £17.54mil

First Class Metals (18.88% holding) = £0.45mil

Red Rock Resources (3.45% holding) = £0.07mil

Aruma Resources (2.69% holding) = £0.04mil

LISTED INVESTMENTS = £18.1mil

ACAM - 30% interest in the £20mil valued JV (£10mil cash + £10mil valued Uranium assets including no future performance-based incentives)

JOINT VENTURES = £6.00mil

First Development Resources pre-IPO valuation (58.59% holding) = £2.58mil

Power Arabia = £4.5mil (Finger in the air valuation but Sean stated many times, “this will be POW’s biggest spin-out to date”. When GMET went live it was first worth £4.4mil to POW, hence the £4.5mil valuation given)

PRE IPO / PRE "SPIN" OUTS = £7.08mil

Approx. cash in the bank = £0.5mil

GSAe (75% holding) = £0.5mil

Aussie Gold asset - Deal with RRR (£250k CLN, £250k cash overdue, £250k cash/equity due in March 25 & £94.4k loan due back to POW, not including any future performance-based incentives) = £0.84mil

Tati JV (25%) = £0.5mil

Molopo (87.71%) = £0.5mil

ION Battery Metals Assets (100%) = £0.5mil

Haneti (35%), Silver Peak (30%) = £0.5mil

OTHER ASSETS = £3.84mil

TOTAL ASSETS = £35.02mil

ACAM Loan Note = (£2mil)

Accrued Interest to date on ACAM loan = (£0.1mil)

Liabilities per the 31/03/2024 interim accounts (latest financials available) = (£0.83mil)

TOTAL LIABILITIES = (£2.93mil)

NET ASSETS = £32.09mil

Shares in Issue as at 25/11/2024 = 114,287,742

NET ASSETS PER SHARE = 28.07p

MARKET PRICE AT 25/11/2024 = 16p

The POW model is all based around that net assets per share calc. If that is going up, POW shareholders should be comfortable that the business is performing. It has been going up year on year (albeit some static periods). It also proves that dilution is no issue here.

POW have had a great 2024 and 2025 looks like it should be a good year too with the Uranium JV & GMET both cashed up with millions in the bank.

Is the market's attitude towards POW slowly starting to change these past few weeks? The discount on offer here is absolutely extraordinary.

I make it since Sean Wade bought £25,000 POW shares on the market the other week, about 45mil shares in old money (2.25mil shares post-consolidation) have been sold per the trade data. During that time, price is up 20-25%.

Approx 4% of the POW float has also been traded since Sean Wade bought on the market. The stock is now slowly starting to see enough liquidity that those who want/need to get out can do so without tanking the SP which has been the case for far too long now.

Just need the buying to continue and this should move back over 20p soon enough. Almost every indicator from a company valuation point of view says 15p is a complete bargain.

Of course, the AIM market and sector sentiment is so poor at present, that buyers are like gold dust!

I would like to think most PI's with even an ounce of a brain cell would "give a hoot about the market cap" of any business ... if you don't, then you shouldn't be investing. Simple as that.

You are right though, most PI's on AIM don't give a hoot about the market cap hence why they are all currently deep in the red and skint. It sums up the state of AIM at the minute too and why most are avoiding it unfortunately.

Molopo is bottom of my pile. We sunk enough cash into that and found nothing of any significance really but there were a few sniffs of Nickel to maybe interest someone one day. It was a prime example of why moving to the "incubate model" or "spin out model" is the way to go to protect your shareholders.

Problem with AIM is that people love an exploration campaign like a Molopo project, but in 99.9999999% of situations it simply leads to no discovery, dilution of shareholders and financial issues. Would personally rather play the Euromillions.

That's why I massively upped my stake in POW since Sean took the helm. We moved away from all that nonsense and started taking small chunks in projects for cash free rides. GMET working a treat and taking on all the risk, Uranium projects now cashed up to the tune of £10mil and up to 5 high impact drill campaigns will be undertaken soon, a Saudi financing solution (JV or IPO) to be announced soon I would imagine, working on expending the GSAe revenue stream. All this is price in for zero as the market cap is covered by our GMET equity alone.

Soon POW will have almost no overheads and large % interests in multiple drilling campaigns that are all being paid for by the other companies. Takes time to setup, but at some point POW can sit back, relax, what the drills spin and hope for a result. All of which costs nothing.

Liquidity drained from AIM over the past few years so the SP hasn't reacted yet to what POW have been building over the past few years. £30mil+ balance sheet now. The highest its ever been since POW became POW back in 2019.

The market will one day catch on, its a case of accumulating POW stock here until the inevitable happens. Then the AIM punter will chase it like a flock of sheep again but probably at a price of 30p+ when the undervaluation has evaporated.