Member Info for Tray556

Worth also noting that RRR couldn't find the cash in August 2024, they haven't found it in September 2024 so far, third time lucky for October pre GM? Seems unlikely.

Yes of course, if RRR find the cash from somewhere to settle POW's obligations instead of issuing equity, then its far less dilutive for RRR holders and my number below go out the window.

RRR currently in default to POW by circa £600,000 today (£250k cash + £250k CLN + £94.4k loan note) .... time is certainly ticking for RRR to find this cash.

Was just simply running some numbers in a scenario where RRR needed to raise a lot of equity and how this would then look in terms of POW's holding in RRR moving forward.

The GM has of course been called for Oct 2024 solely to raise up to 2.5bil shares as they have fallen in default to POW on the deal the literally signed a few months ago.

Yes, POW would have simply swapped their 49.9% minority holding in RRAL for the following holding in the full RRR business:

£250,000 cash

Circa 1.9bil RRR shares (currently hold 166,666,667 RRR shares + all of the below)

Circa 0.7bil RRR warrants at 0.0525p

£500,000 future performance incentives from the Aussie Gold assets

So if the enlarged share capital post GM placing and post settling the POW obligations is around 7.4bil, POW will hold 1.9bil shares = circa 25.6% holding

This is all based on settling the POW equity obligations at 0.035p. If the RRR issue equity at lower than 0.035p, POW get a higher % in RRR. Vice versa if RRR issue the equity at a higher price than 0.035p.

Just ran few more quick numbers on this RRAL/RRR/POW deal to try and quantify what the RRR & POW positions could be once RRR are out of default and have paid POW all the terms of the deal. Lots of variables involved but lets assume the following:

1) RRR elect to pay POW in equity at all of the hurdles of the RRAL deal apart from the £250,000 that is due in cash.

2) The upcoming placing post GM in October 2024 will be at 0.035p

Current RRR float = 5,004,338,042

Shares raised at 0.035p to pay £250,000 cash to POW = 714,285,714 shares issued

Shares raised at 0.035p to pay the £94,400 outstanding loan to POW = 269,714,286 shares issued

Shares raised at 0.035p to cover POW's £250,000 CLN = 714,285,714 shares issued (+ 357,142,857 warrants at 0.0525p)

Shares raised at 0.035p in March 2025 to cover the final £250,000 payment = 714,285,714 shares issued (+357,142,857 warrants at 0.0525p)

So just to clear all the RRR obligations to POW, RRR at 0.035p would need to raise circa 2.4 billion additional shares just to clear their obligations to POW in regards to the Aussie Gold deal. The RRR float would increase to 7.4bil and almost all of the 2.5bil headroom increase proposed in the GM in a few weeks would be instantly covered. There are then clear and obvious questions around how RRR finance the rest of their business but that's a totally different topic.

The alternative is not pay POW, go into default on the deal you signed literally a few months ago and the company's survival in these markets could be seriously called into question.

Assuming the placing goes ahead, POW would walk away with £250k cash + around 1.9bil RRR shares (+0.7bil 0.0525p warrants) per the calcs above. Of the enlarged circa 7.4bil shares now in issue, this is around a 25% stake in RRR that POW would hold.

Of course, if the RRR SP improves and a placing at a higher price than 0.035p can be done, then dilution for RRR holders is reduced and POW walk away with a smaller stake and less warrants in RRR.

Lots of variables above but should give a reasonably accurate picture of what's at stake here for both POW & RRR.

Just ran few more quick numbers on this RRAL/RRR/POW deal to try and quantify what the RRR & POW positions could be once RRR are out of default and have paid POW all the terms of the deal. Lots of variables involved but lets assuming the following:

1) RRR elect to pay POW in equity at all of the hurdles of the RRAL deal apart from the £250,000 that is due in cash.

2) The upcoming placing post GM in October 2024 will be at 0.035p

Current RRR float = 5,004,338,042

Shares raised at 0.035p to pay £250,000 cash to POW = 714,285,714 shares issued

Shares raised at 0.035p to pay the £94,400 outstanding loan to POW = 269,714,286 shares issued

Shares raised at 0.035p to cover POW's £250,000 CLN = 714,285,714 shares issued (+ 357,142,857 warrants at 0.0525p)

Shares raised at 0.035p in March 2025 to cover the final £250,000 payment = 714,285,714 shares issued (+357,142,857 warrants at 0.0525p)

So just to clear all the RRR obligations to POW, RRR at 0.035p would need to raise circa 2.4 billion additional shares just to clear their obligations to POW in regards to the Aussie Gold deal. The RRR float would increase to 7.4bil and almost all of the 2.5bil headroom increase proposed in the GM in a few weeks would be instantly covered. There are then clear and obvious questions around how RRR finance the rest of their business but that's a totally different topic.

The alternative is not pay POW, go into default on the deal you signed literally a few months ago and the company's survival in these markets could be seriously called into question.

Assuming the placing goes ahead, POW would walk away with £250k cash + around 1.9bil RRR shares (+0.7bil 0.0525p warrants) per the calcs above. Of the enlarged circa 7.4bil shares now in issue, this is around a 25% stake in RRR that POW would hold.

Of course, if the RRR SP improves and a placing at a higher price than 0.035p can be done, then dilution for RRR holders is reduced and POW walk away with a smaller stake and less warrants in RRR.

Lots of variables above but should give a reasonably accurate picture of what's at stake here.

Should say "POW could easily seize a 20%+ stake in RRR once the terms of the Aussie Gold deal are fulfilled"

I can remember posting the clear detailed terms of the RRAL/RRR/POW deal on the RRR board about 6 months ago when it was drafted up. I've recently posted a similar post on the POW LSE board and the effects it will have on both RRR & POW.

A guy called Helpful at the time said I had "the IQ of room temperature, and to clarify in Celsius not Fahrenheit" in response to my post .... to this day that is probably the best thought out insult I have ever received on one of these boards!

Helpful's reply however was ironically unhelpful for all listeners on here because what I posted will most likely turn out to be turn and there is highly likely some epic dilution coming for RRR holders as POW could easily seize a 20%+ in POW once the terms of this Aussie Gold deal are all fulfilled. I stated this 6 months ago.

The GM has clearly been called as RRR are now in default up to around £600,000 to POW (£250k cash, £94.4k loan note + interest, £250k CLN note repayable in cash as the conversion terms were not triggered within 6 months of the head of terms). RRR communicated via RNS last month when POW let RRR have another month to meet the obligations of the deal. A month has passed, no RNS from RRR this time around suggests POW have upped the ante. Now an "emergency GM" is called to raise funds to avoid a clear default.

Unfortunately I feel RRR are in between a bit of a rock and hard at the minute now they have signed the deal. Some are calling for the intended placing not to go ahead, but then RRR are in default to POW and POW will take them to the cleaners. If they go ahead with the placing and satisfy the terms of the RRAL/RRR/POW aussie gold deal, then POW take a massive chunk of RRR and its epic dilution for RRR holders.

As I said many months ago when the deal was initially drawn up, I'm glad I'm on the POW side of the fence in terms of where my capital sits. All the best to RRR holders, just posting what in my opinion is a fairly realistic update.

Looks as though Sean has upped the ante on RRR and RRR are now scrabbling to find the cash and equity headroom to complete the NBGC deal hence the general meeting that is occurring on 10/10/2024 to avoid a default.

RRR currently with 5bil shares in issue and a market cap of circa £2.1mil and an SP of 0.0425p

If RRR manage to pull off a miracle and raise £250k at say 0.04p in this market, that's another 625mil shares taking the float to 5.63bil just to give POW the £250k cash.

Raising over £200k auto triggers the £250k POW convertible loan note clause which then gives POW £250k of RRR stock at the placing price of 0.04p which is another 625mil issued taking the float to 6.25bil

Then the 94.4k loan will most likely be settled via equity as well so if that's at 0.04p too its another 236mil RRR shares issued taking the float to circa 6.5bil post general meeting in October 2024.

So the updated RRR float would be around 6.5bil of which POW would own 625mil shares from the £250k CLN + 236mil shares from the £94.4k loan note +166mil shares that they currently own = just over 1bil shares in RRR stock (100s of millions of warrants will be issued too)

1bil of the 6.5bil RRR updated float would be a circa 15% RRR holding + the £250k cash they owe + the £250k cash/equity they owe in March 2025 + £500k in NBGC future performance incentives under RRR leadership which is an instant write off anyways in my opinion.

Of course the above is based on a lot of variables regarding what is getting paid in cash/RRR equity as the terms of the initial agreement have been extended and now breached by RRR. There will probably be a change per the initial terms of the agreement. For example, POW may opt to take a bit more RRR equity at cash hurdles just to get something from RRR. The price RRR can get a placing away at after their GM is also the other key variable.

Basically the lower the price RRR raise this £250k cash at imminently, the more RRR shares POW get from their £250k CLN (assuming Sean Wade at POW isn't demanding the £250k CLN to be repaid in cash now per the terms of the deal as 6 months has now surpassed from the Heads of Terms agreement).

Best sell up now then sol001 and move on .... these Saudi assets won't be staying under the direct POW banner. They will be spun out into some sort of Saudi separate vehicle, a separate vehicle which the POW CEO has stated many times will be "the biggest spin out yet". POW then retain an indirect % of that vehicle and the vehicle funds itself costing POW £0 once the spin out is complete. Its the POW model which at present is working very well.

POW spent circa £2mil fully acquiring pilot mountain and spinning that asset into GMET. Now they have a 45% stake in a £35mil+ valued listed vehicle. Hoping in the near term POW sell some GMET and then its a rinse and repeat job with the Saudi ventures.

Good points bobbust.

What most forget here is that:

1) The Saudi venture is current priced in at £0 by the market

2) POW have a circa £30mil balance sheet as at today which gives them financial options.

3) POW have proven over the past 12-18 months they can get favourable finance including £500,000 at a premium from a Saudi investor.

So today's news is that POW are looking to get into bed with a major Saudi dividend paying outfit who have a market cap of circa £1.2bil. POW need to spend $3mil (£2.3mil) to earn in to 49% of the project. This will most likely be done over a few years. POW no longer looking to deal with micro cap UK AIM outfits (KAT, RRR etc.) which is good to see.

The strong POW balance sheet gives the business many options which most sub £20mil junior exploration companies simply don't have. The most obvious options being selling GMET shares or the creating of a Saudi IPO / JV which would give funding.

POW now getting into bed with some major players in the mining industry. Surely the potential re the Saudi arm of the business should not be valued at £0, but it is, so I'll continue to add to my POW position.

As a POW holder my hope is that Tethers Financial (now called URANIUM ENERGY EXPLORATION PLC) remains a delisted shell company. The ACAM JV is far more lucrative for POW holders and with ACAM on board it gives POW more big name contacts, better avenues to finance, higher chances of drilling/exploration successes etc.

If POW managed to get the JV with ACAM over the line (should find out by the extended deadline of 13/09/2024) then all the Uranium assets would most likely convert into a separate unlisted vehicle where ACAM own 70%, POW own 30% and there is £10mil cash in the vehicle's bank account as per the terms of the original term sheet a few months ago.

How the pre-IPO participants to the original UEE/Teathers IPO plans are treated remains a mystery and is probably going to be quite complex to sort out (could be one of many reasons why the legals are dragging on a bit). But hopefully the ACAM JV gets over the line in the coming weeks and the unwinding of the pre-IPO participants is sensible and fair for all.

Of course Louis, you will be hoping none of the above happens, the ACAM JV gets scrapped and POW decided to go back to the original plan of using the old Teathers vehicle to commence a Uranium listed company. Then you may have a sniff of getting something back from your original Teathers shares.

POW's listed investments + warrants in the money = £20.4mil

ACAM Uranium JV = £6mil

FDR pre-IPO = £2.6mil

RRR add ons to come from the NBGC deal = £0.8mil

Less: £2mil Loan note = (£2mil)

TOTAL ABOVE = £27.8mil

Market Cap = £19.1mil

The ludicrous market valuation continues and so does the obvious buy opportunity! Not even mentioned working with Saudi mining major companies and GSAe revenue streams.

The next wave of buyers will arrive here soon and the massive discount to NAV will be swallowed up by the savvy.

The value of POW's GMET investment alone (shares + 17p warrants in the money) is valued at £19.21mil as at 12:30pm today.

So just the value of POW's GMET shares are worth 108% of it's market cap.

A bizarre and ludicrous POW market valuation at present.

POW listed investments + GMET warrants in the money = £19.86mil

POW market cap = £17.79mil

POW's investments alone therefore cover over 111.5% of its market cap as at today. That is without factoring in an value towards the upcoming £10mil Uranium JV, Saudi/GSAe ongoing work with Saudi major mining cos, £2.5mil+ in pre-IPO FDR shares etc etc.

What a gift of an investing opportunity at these levels.

Again Sol, seems like you are simply looking at the SP and hindsight to make your decisions on the company.

GMET is worth £18mil to POW today. In a poor market the market wants to see cash. In a strong market, the market will be saying "POW could sell that £18mil investment and turn it into £100mil in a heartbeat" and the SP would go through the roof. The market could turn tomorrow, it could turn in 5 years or it could never turn again but every penny and more of POW's £17.5mil market cap today is accounted for.

GMET an anomaly for me really in these markets. Yes they have the unique Tungsten play, yes they have a tight float and yes they potential DoD funding coming up with a more vocal CEO. But their SP is where it is because many have left POW to play the shorter term GMET catalysts. Some of that capital will eventually return to POW. There is no fresh capital in the sector at the minute so if a few quid goes from POW to GMET, POW drops hard and GMET rises quickly as we have seen. Vice versa will happen at some point in my opinion.

POW is therefore not only going to rise at the point POW turns all its investments into cash. It would help in a poor market, but POW are setting themselves up for better markets when those investments could be worth many multiples more. POW's SP will rise when the AIM market recovers along with sector confidence which is currently on its knees.

POW's market cap increased over £10mil on a Molopo planned drill campaign the other year. No value was created whatsoever in that RNS (in hindsight £1mil+ was pretty much wasted). The RNS was just a bit of guesswork with some pretty colours on some diagrams. The market was a bit more buoyant at the time as more capital was around. Should POW have increase by £10mil on that news? Absolutely not in a million years, but it did, lots followed the herd and now many are suffering.

People on here investing in POW because "PJ said so" but see the company now as a complete failure when the balance sheet is flying. Absolutely baffles me.

Should POW now be £10mil higher right this moment in time, absolutely yes in my view and that is just to get a bit closer to fair value based on the balance sheet alone.

Buy when nobody wants the better looking stocks that are backed by clear tangible value. POW certainly in that category now at these levels. The SP will eventually shine through.

Sol, that’s a market issue, not a POW issue as far as I’m concerned. Like I said, more than happy to be in the minority right now.

POW is adding the clear value, the market is not buying into it. The perfect buying scenario. Im a buyer anyways at these daft prices. Almost every metric is screaming buy.

I’m just pointing out the main moan on here today is basically “I bought in when the business was overvalued, severely overleveraged myself, followed the crowd when it was getting pumped to high heaven, but I still want to make money”

The only moan based on what I can see on here today is therefore against one’s own poor investing strategy, not on POW.

A common theme today on here appears to be that anyone who is currently massively in the red thinks this is a bad investment!? Classic AIM mentality and why most lose at this game.

When all the company's listed investment values match their market cap, you get a chance to enter a stock today where all the company's non-listed investments are in for free. And POW have a whole array of non-listed investments. They are about to sign off on a 30% stake in a £20mil valued Uranium JV in a matter of days! They are working with Saudi major mining companies per the latest GSAe RNS etc. etc. The list goes on. All priced in at £0.

I personally topped up again today and have done a good few times over the past week or two, its a total no brainer in my opinion. The irrational moaning on here is laughable at times but all part of the game I guess. I'm more than happy to be in the minority and buying at these prices.

When all those on here are moaning but they bought into POW at 2p+ (40p+ post consolidation) when the markets were simply more buoyant, POW had nothing on their balance sheet to back up any of their valuation and PJ was telling everyone that POW was the next Rio Tinto .... then why could you not see POW as a better investment today? Apart from poor market sentiment in this space (which POW cannot control), almost every single other metric points to POW being in far better position today than when the moaners on here first invested when the POW SP was far higher.

Don't get me wrong, I'm not in profit either at the moment (I don't think many are!), but I'm currently about breakeven but I could be up 200% or down 50%, surely a monkey can still see the clear value this company has created recently.

Sean doing a really good job if you ask me controlling the controllables. That's all you can do until the market picks up.

POW are due £250,000 in cash from RRR next week. I think its due on Monday 12th August 2024 as this is 2 months after the NBGC deal was completed. Doubt RRR have anywhere near that money in the bank and £250,000 at the minute is around 11% of their market cap.

If RRR raise over £200,000 via a financing (which looks inevitable), then POW also get £250k worth of RRR stock at the placing price via the convertible loan notes they hold from the NBGC deal. So POW could end up with 10%+ of RRR stock shortly.

The most important factor here is that POW have no outgoings anymore into a costly venture that they don't have control of and is ran by a total lifestyle AIM outfit. Anything we get from RRR is a bonus in my view and I fully expect them to drag their heels committing to any of the clauses of the NBGC agreement that was signed just a few months ago.

A few too many unknown variables for me to really comment on a potential £5mil buyback.

I'm sure if POW took £5mil off the GMET table, it would simply go to working capital purposes anyways and accelerate all parts of the POW portfolio (some of which seem to be rightly or wrongly moving at snail pace at present).

For clarity, those investment values are as follows:

GMET Shares = £18,899,356

GMET 17p warrants in the money (profit element) = £314,888

FCM Shares = £666,183

RRR Shares* = £87,500

Aruma Resources Shares = £50,859

TOTAL = £20,018,786

*Doesn't take into account the further £750,000 worth of cash & equity to come from RRR as part of the signed New Ballarat Gold Corp deal. The first £250,000 IN CASH lands on or around 11th August 2024 (2 months after the completion date).