Member Info for Tray556

At the time of writing this post (using mid-prices):

Value of POW's GMET shares + 17p warrants = £17.54mil

POW's Market Cap = £16.57mil

So POW is now undervalued from a GMET investment angle alone. Add in the 30% exposure to the £20mil Uranium JV (with £10mil cash in the bank!), Saudi licences, one of which is with AMAK a £1bil+ valued company, GSAe revenue stream, 25% Tati JV where the partners will be effectively building a "free" gold processing plant ....

Undervaluation here is absolutely nuts!

Seems like a promising Uranium licence.

Can remember looking into this a few months ago as POW had to pay a few quid to acquire this one (all other U licences we acquired for pennies). This was the last U licence POW acquired form memory and now hold 30% of a Uranium JV which is valued at £20mil with £10mil CASH in the bank.

Right next to a known resource all owned by ATHA Energy who have a market cap of about £90mil today. There was quite a bit of M&A activity around this licenced ground by ATHA Energy in the last few years.

Surely we see a drill campaign here next year as any successes would almost certainly mean we end up on ATHA Energy’s radar for a potential partnership/buyout.

All the above and the rest of the 17 licence Uranium portfolio priced in at a big fat £0 today too! Bizarre.

As mentioned a few months ago, if POW only take the outstanding £250k in cash and opt to take all the other elements of the Aussie Gold asset deal in equity (including the outstanding £94.4k loan between RRR & POW), if the equity element of the deal is all priced at the mid price now (0.05p), then according to my calcs POW would get the following:

£250,000 cash

1.35mil RRR shares (plus just under 700mil warrants at 0.075p)

This would represent approx. 18% of the enlarged share capital of RRR and current RRR holders would be diluted into another galaxy with the float increasing to around the 7.4bil shares in issue mark.

The only way to avoid the above is to get a big chunk of cash from somewhere and give it to POW. But the funds are not only late, but RRR are now also in default of the 60 day late period. Seems like POW are being quite kind to RRR here. They could really up the ante if they wanted to now.

But remember, the Stockbox interview this morning is not to be missed ....

"Stockbox interview scheduled - Tuesday a.m. Don't miss." - Would be ironic if RRR miss their own given timeframe for the scheduled interview as posted on X just yesterday!

The amount of "misses" this company has had in the past few years is quite astonishing really.

Questions still remains (and its even more crucial now the funds due to POW are putting RRR into a serious default position):

1) Can RRR pay POW all the hurdles of the Aussie Gold asset deal in cash? They haven't achieved a penny in cash yet and £250k+ is late.

2) If the hurdles are paid in cash, how much dilution are RRR holders looking at to give POW the funds. My guess is dilution is going to send RRR holders into another galaxy.

3) If RRR raise cash to pay POW, POW get a stack of equity from the CLNs anyways plus a load of cheap warrants too.

4) If RRR don't have the cash and offer POW equity instead and POW accept it, do POW end up with 20%, 25%, 30% of the entire RRR business? Would depend on the price the equity is offered but POW would end up as RRR's largest shareholder for certain and become a big voice in future meetings. This is surely not in A Bell & the board's interest.

5) Do RRR hold their hands up and say we messed up signing this deal which is going to dilution RRR holders into the ground and give POW a huge stake in RRR. Do RRR just hold their hands up and give POW the assets for £1?

Time will tell ..... just over an hour to go. Looks like more waffle coming in this Stockbox interview. Remember, Stockbox won't be doing this for free, so even the waffle is costing RRR holders more money to talk about nothing. You would have though at least something newsworthy would be getting discussed with the phrase "don't miss" being used.

Sol001 - The 20p options would be new stock if converted in the future.

So if price gets to say 30p, if the directors were to convert all those 20p options they would get 3.75mil of shares for the price of 20p, but that would come from newly issued equity. POW as a business would receive £750,000 in the business bank though.

The 200,000 Sean purchased today comes directly from the free float though.

Any profits are shared 70:30 in the ACAM JV. POW don't have to make ACAM money. The JV is a separate entity to POW.

Lets just say the £10mil exploration pot finds the beginning of what looks like a nice deposit in 12-24 months time. Some Uranium major comes along and buys the lot for £50mil.

ACAM would walk away with £35mil cash (less £4mil they have to give to POW as a performance incentive), POW walk away with £15mil cash from the deal + £4mil from ACAM for making them more than £30mil (terms of POW's bonus scheme with ACAM).

If the JV finds nothing, then either it folds into a shell company and nobody makes a bean or ACAM & POW put in further funds on a 70:30 basis to keep their current holdings in the JV vehicle the same. At that point, ACAM could say "we will put in another £5mil , POW put in £0, but its a 90:10 JV going forward" for example.

Of course the above is an example of an outright sale. The Uranium assets could get spun out into an IPO, further JV partners could join etc.

Bottom line, at these prices, its all priced in for £0 anyways! Complete madness this AIM market at present. POW CEO loading up more now as well with a circa £25,000 buy today.

It's very strange indeed. POW's market cap back down to £14mil this morning.

I think someone brought up the point on here a few days ago that even £1mil of exploration expenses in a junior exploration company at least whips up a bit of excitement. POW have 30% exposure to a £10mil exploration fund, yet the market is going backwards in terms of its valuation of POW as the JV starts to gear up to some meaty drill campaigns in 2025.

Not only is there £10mil in a Uranium exploration pot backed by billionaires, the fact that POW's GMET holding and other listed investments already covers 95% of the POW market cap, makes the Uranium JV priced in for free here.

The AIM market is in an absolute mess at present and with junior exploration sentiment on it's knees too, it's a combination for some serious illogical SP movements at the moment which POW are unfortunately experiencing.

Great post TechnoInvest!

£14mil market cap for a company with a £25mil+ balance sheet and lots of moving parts with no future cashflow implications for POW (GMET holding, Tati JV, £10mil in the bank for Uranium exploration, Saudi interests once spun out, FDR once IPO live etc etc.)

I do also fully agree that from these levels, POW offers one of the best investment opportunities on AIM in the junior exploration sector based on the clear value created on the balance sheet over the past few years vs the current market cap.

Lots of AIM punters focus solely on the SP when it comes to the emotions of investing .... if you buy when the price is flying and sell when the price is dropping, how do you make any money in this game! I personally think you will do very well buying from these levels over the next 12-24 months sir.

POW added £6mil in value last month via the Uranium deal with ACAM (30% of a £20mil JV). The market cap since then has dropped by £6mil?!?! The whole AIM market is acting totally illogical at present. Is AIM broken permanently? Or is it an brilliant opportunity to buy? Time will tell, but the risk/reward is surely heavily in favour of reward when it comes to buying POW with a £14mil price tag as they have pretty much double the £14mil price tag sat on the balance sheet at present.

Latest video with Sean & Rick:

https://www.youtube.com/watch?v=0dcqjiz2rxY

I wasn't at the GM so cannot comment too much but personally if I was dropping £1mil + £500k potential add ons in a £1.5mil deal with POW to take 100% of the aussie gold assets, I would at least lie and say they were our best assets.

The deal was only signed a few months ago, RRR already in default and didn't have anywhere near the cash or equity at the time to pull off the deal.

Either POW now get the aussie gold asset for £1 next month, or POW end up getting a load of cash & RRR equity and RRR holders get diluted to another galaxy.

If Burkina Faso (a place where almost all global travel advice is to avoid like the plague) is the best RRR asset, then why would A Bell risk diluting RRR holders to oblivion via this RRAL deal with POW when its not even a top priority asset? The mind boggles.

According to the RRR telegram page this afternoon:

- Resolutions passed by show of hands 3-1

- Andrew stated clearly, Burkina Faso was our best asset at present

This is the way I see the Arabian Shield plans playing out over the coming weeks/months which also Sean touches on at the end of the BlytheRay interview below:

- Number of discussions currently happening behind the scenes regarding the Saudi IPO/JV but nothing yet to publicly announce.

- POW open at this stage as to whether the "Power Arabia" vehicle will be an IPO (like GMET) or a JV (like the ACAM deal)

- Also open minded on listing location if the venture is IPO'd (TSX, LSE or ASX)

- Committed exploration spend will all be funded via Power Arabia NOT Power Metal so any $3mil committed spend via the AMAK deal for example will come from Power Arabia's bank, not POW's once a funding round has occurred in the Power Arabia vehicle.

- Power Arabia will house all the assets, Power Metal will therefore have an significant interest in the Power Arabia vehicle eventually.

- To summarise, once done, the Power Arabia venture will be yet another cash free ride for POW, it may just most likely take a bit of POW cash and/or equity to get deals initially signed (a bit like the way POW paid £2mil in equity for Thor's Pilot Mountain asset which is now worth a £15mil cash free GMET ride for POW)

The Saudi plans are also priced in a £0, just like most of the POW portfolio.

BlytheRay - https://www.youtube.com/watch?v=VajsmGnZN5M

Stockbox - https://www.youtube.com/watch?v=MCFAwyw4PT4

Total Market Solutions - https://www.youtube.com/watch?v=096k_LoUxy0

I am no salesman, I am simply regurgitating what the business has achieved so far and that the POW business model doesn't require a commercial discovery, production etc. If someone doesn't understand the POW model, I'll simply raise the point.

You seem to judge companies solely on SP performance and nothing else. Hence why you bought POW at a £30mil valuation in 2021 in a booming market when they had nothing to show for it, and why you now think POW with a £30mil balance sheet but a low SP (£17.5mil market cap) is somehow diluting everyone to death in a weak market.

We all have different opinions and investing techniques, but I have to say Pete, yours is one I just simply cannot get my head around, and I'm sure its feelings mutual.

PowerfulPete talking total nonsense about dilution in POW again I see. Also talking nonsense about POW needing to find a commercial discovery. It would be nice of course, but a commercial discovery is simply not required here for POW holders to make a significant return and shows a total lack of understanding of the POW model.

POW are around £13mil in profit today on their GMET investment from just a few clever business transactions effectively. Around £2mil was paid to Thor Mining a few years ago for Pilot Mountain, spun out into GMET, much better management and finance put in place and now worth £15mil+ to POW today. GMET haven't found a commercial discovery yet but I guess they are moving a bit closer towards one.

To add to the above, POW probably spent £1mil on all their Uranium licences to date. Just completed a transaction with ACAM (or UCAM or JCAM whatever they called themselves!) worth £6mil today (30% of the £20mil valued JV). That's another £5mil in net shareholder value. A £10mil uranium JV fund will attempt to push those projects forward too.

As explained many times on here and as clearly outlined above, when POW raise £1mil they generally turn it into a whole lot more. That simply isn't dilution, it's the opposite! It strong financial management in a weak market. The weak market being something out of POW's control completely. A quick "net assets per share" calc will justify all my comments.

Of course, the SP isn't going in the direction Pete wants it to go, so unfortunately he just makes illogical comments time and again on this board. I'm sure Pete bought in at 3p in 2021 when the business was worth £30mil but POW only had £200k in the bank and a couple of licences, those licences were even further away from a commercial discovery than they are today.

Almost all metrics point to POW controlling the controllables very well here, the AIM market is just simply in dire straits. POW valued at £17.5mil today vs a balance sheet alone touching £30mil+.

That's an Edinburgh Fringe quality joke that TrickyDicky2.

If you ever get yourself up to the Edinburgh comedy festival, keep your eye out for some of RRR's trucks .... heard a few have gone missing in the Scotland area of late ....

I did a bit of digging around yesterday in regards to the new Uranium project "Drake Lake-Silas" which will be shortly vended into the JV vehicle with ACAM.

Per the RNS "The mapped geology is contiguous with a resource of 5 million pounds ("lbs") U3O8 indicated and 5.82 million lbs U3O-8 inferred1, and a vanadium resource of 15.81 million lbs inferred of V2O5, at 0.088% V2O5 within 1 kilometre ("km") of the Property's boundaries"

The POW new property appears to be within 1km from ATHA Energy Corp's "Moran Lake C-Zone" based on the V2O5 & U3O8 numbers given in the RNS.

ATHA Energy Corp look to be listed on the TSX and have a market cap of around $174mil CAD which is around a £96mil market cap today.

It looks as though ATHA Energy acquired this land via a merger with Latitude Uranium earlier this year. ATHA Energy also appear to be quite keen to expand their Uranium footprint and have done a number of deals of the past few years.

As mentioned above, it's all within 1km of POW's new ground but shows there is plenty of M&A around this area.

Https://hallgartenco.com/wp-content/uploads/2024/09/GMET_October2024.pdf

88p target price given for GMET today by Hallgarten.

If the GMET SP touches 88p it would be worth circa £48,700,000 to POW as POW hold 53,998,159 GMET shares + 1,749,378 17p warrants.

Fully converted holding = 55,747,537 x 88p = £49,057,833

Less: Costs to convert 17p warrants = (£297,394)

VALUE TO POW @ 88p = £48,760,439

Https://hallgartenco.com/wp-content/uploads/2024/09/GMET_October2024.pdf

Target price given by Hallgarten for the next 12 months = 88p

The front page references that the target price may be in AUD, but this appears to be a mistake and the target price is £0.88 which is circa 283% upside from current levels.

This was all after A Bell stated on the RNS on 12th June 2024:

"We have the backing of major shareholders for our cash commitments under this transaction including the first cash payment of £250,000 due two months after Completion."