Member Info for Tray556

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).

First time today that POW's total listed investments breached the £20mil mark at the bell.

And all for a £19.1mil price tag?!?!

If that's not a buy signal then I simply don't know what is!

GMET Shares + warrants in the money = £18.65mil

FCM Shares = £0.67mil

RRR Shares (not including any non-performance NBGC add ons worth £750k) = £0.09mil

Aruma Resources Shares = £0.05mil

LISTED INVESTMENT VALUE = £19.46mil

POW Market Cap = £19.18mil

So POW's listed investments alone are being valued by the market at £280,000 less than what the market is valuing those individual listed investments at?!?!?

Cannot get much more illogical than that, and that is before you even start considering everything else which is in the mix for free!

The FTSE250??? The FTSE250 is an index containing mid-cap blue chip companies (basically the 101st to 350th ranked UK listed companies by market cap).

The index chooses you, you don't choose it.

Companies on the FTSE250 have market caps in the multi billions of £'s.

The POW market cap is £19.4mil this morning.

POW's investments this morning are as follows:

GMET shares + 17p warrants in the money = £17.8mil

FCM shares = £0.7mil

RRR shares + NBGC deal adds on (not performance add ons) = £0.9mil

TOTAL = £19.4mil

Entire POW market cap is now covered by its listed investments alone! All of which are also tradable.

Everything else is now in for free which includes a £6mil+ valued Uranium JV, Tati JV, future Saudi IPO, future FDR IPO, GSAe revenue streams etc.

As someone pointed out on here the other day, not Sean and the POW team's fault, just simply a terrible AIM market. AIM certainly not doing any favours for POW shareholders at the moment. The model is clearly working, anyone who disagrees with that simply doesn't understand the POW model. Value is just not being realised by the market unfortunately.

Based on my "discount to NAV" calcs, I basically work out that you can pick up a POW shares for circa 17.5p today, which is worth around the 35p mark on paper. Therefore POW in my view based on financials is on sale at half price today but nobody wants it. Back in 2021 when POW was at 60p (post consolidation) it was probably overvalued on a 10-fold basis yet everyone loved it. Go figure!

More comms from Sean last night on an interview with The Northern Miner stating that the Saudi pre-IPO round is looking to be around the £15mil mark. No time frame given as to when the pre-IPO will go ahead, however, it will be interesting to see what % holding POW come out with once the vehicle fully lists. Sean has said on many occasions "this will be the biggest POW spin out to date."

Catalysts to look forward to:

-£15mil upcoming Saudi pre-IPO (POW to hold an unknown %)

-£10mil #uranium exploration cash budget via the ACAM JV (POW hold 30%)

-Free #gold processing plant via the Tati JV (POW hold 25%)

-GSAe revenue streams & new contracts (POW hold 75%)

All priced in at £0 according to Mr Market when you take into account POW's current investment values.

After the warrants conversation on 12/07/2024, the following 17p warrants remain in the money with an expiry date of 10/05/2025:

17,339,529 x 17p warrants = £2,947,720

In addition to the above, 991,277 x 10.75p warrants = £106,562 remain unconverted but have been extended due to these warrant holders having possession of insider information

Also 6,004,859 x 14p options = £840,680 remain outstanding and in the money

2,500,000 x 25p warrants = £625,000 are also in the money from the £750,000 Purebond financing from March 2024

So if all the above is fully converted, there will be around a 25% increase to the share float, bringing in around £4.5mil to the GMET bank account.

Yes its £10mil in the bank to be used by the JV only. Its a separate entity to POW. The £10mil won't hit the POW bank account as it belongs to the JV.

Yes its a non-binding agreement at the moment where ACAM/POW have 8 weeks from 3rd June 2024 (period ends Monday 29th July 2024) to complete legal, due diligence etc. and formally sign the deal.

Yes things can change, but if things change dramatically, the agreement won't be signed so don't expect that to happen.

Fully expect things to go ahead as planned as most of the work regarding the terms of these deals are discussed and agreed on before the initial "pre-due diligence" announcement. Unless a big red flag comes up on the DD, it will move ahead.

Within a few weeks expecting the JV vehicle to be cashed up to the tune of £10mil, Uranium exploration will ramp up to a whole new level with multiple exploration programmes and then multiple drill programmes to follow across the huge Athabasca land package.

All costs POW £0, and they reap 30% of any rewards.

PowerfulPete - per the RNS on 03/06/2024:

"Pursuant to the Term Sheet, it is intended that ACAM will invest an initial £10 million into Power Metal Canada for an equity interest of 70% with the proceeds used to fund exploration programmes across the portfolio of uranium licences, including drilling."

Jonnieboy - Certainly was a solid deal. £10mil in the bank to be deployed on multiple vast Uranium exploration programmes soon I would imagine.

Must be getting close to signing off that deal with ACAM LP. 8 week exclusivity period regarding the deal started on 3rd June 2024, so I make that Monday 29th July 2024 before things must really be finalised.

Once finalised, I expect that £10mil cash to start getting deployed immediately across multiple Uranium licences in and around the Athabasca area. Newsflow will be very strong from that part of the business over the coming months I would imagine.

POW with 30% of the JV, with the JV being valued at the £20mil mark. Therefore currently worth £6mil to POW pre-exploration. Also £4mil worth of future add-ons for POW depending on performance of the JV, but minimal details has been released regarding these add-ons to date but should be communicated upon finalisation of the deal.

Current investment values in GMET, FCM & RRR worth £18.1mil this morning vs a POW MCap of £20.8mil. Therefore everything that POW have exposure to that is not a listed investment is worth just £2.7mil to Mr Market. That's even with a £6mil valued Uranium JV about to kick of exploration in the next few weeks for starters.

It's all about taking advantage of these obvious micro cap market inefficiencies when they present themselves, not succumbing to them as POW is undervalued on almost all metrics.

Yes Willowman, certainly a possibility over at GMET.

But GMET is just one of many parts of the POW portfolio. We could all soon be saying the same thing about our Uranium assets once the ACAM JV kicks off and the £10mil in the bank in that JV is deployed on up to 5 meaty drilling campaigns. Then we could be saying in 12-24 months that that JV could get taken out for £100mil which POW will own 30% of.

Plenty of moving parts, yet the market values POW at just £20.5mil today which consists of a £17.8mil GMET investment value. Therefore around 86% of the POW market cap is now attributable to GMET alone. Therefore everything else is practically in for free before you start adding in any further potential to our GMET investment or the other iron in the fire.

Market totally asleep here, but it won't be forever. Never seen a more clear as daylight buy zone since I first invested a couple of quid into POW in 2020.

POW's listed investments which contain; GMET Shares (plus 17p warrants in the money) + FCM shares + RRR shares = £17mil at the close of market on 08/07/2024.

POW MCap as at 08/07/2024 = £19.7mil

The market now values the remainder of the business at just £2.7mil?!?! Included in that £2.7mil is a pre-IPO holding in FDR worth £2.6mil. So that now leaves a £100,000 valuation to cover the following:

- 30% Uranium JV worth £6mil+ to POW and the JV has £10mil in the bank for exploration shortly.

- 25% Tati JV where the JV partner is effectively building a gold processing plant for free.

- RRR deal where at least a further £750k in RRR cash/equity is on its way in the next 9 months (£250k is definitely cash)

- Power Arabia IPO which Sean describes as "the biggest POW IPO yet"

- 75% GSAe which already turns a profit with large new contracts getting discussed

To summarise, the junior exploration space is simply acting totally illogical at present. There is no other way of even attempting to logically explain the above other than a broken market & a broken sector.

That's the key point here Greenboyslacker and well pointed out.

The discount to NAV is INCREASING under Sean Wade .... that only says to me that the inefficiency in the junior exploration sector is only increasing too at present. It's unfortunate for POW holders at present, however, it is down to no wrong doing from the business. The business model is working just fine on almost all metrics.

The discount to NAV will close soon enough and then will more than likely trade at a big premium once momentum returns to the POW SP. No doubt the average AIM punter will then jump in to POW once there is a 50%+ premium to NAV and then they be totally baffled when they aren't making any money.

19p now buys you 30p+ worth of POW assets. A lot of those assets (GMET, ACAM Uranium JV, Tati JV) are all cashed up to the tune of many millions of £'s and ready to add further value without costing POW a penny in the short/medium term. Yet back in 2021 at 60p a share (3p pre consolidation), those were happy to buy when POW had 5p a share worth of net assets and therefore the remaining value was just a whole lot of hot air.

More than happy with what Sean and the team are achieving here. Value will shine through eventually.

Certainly is incredible Doc83!

Current undervalued SP is 19p, yet the balance sheet alone says "The POW SP should be at 30p+..."

Huge 50%+ discount to NAV on offer! This clear bargain certainly won't be around for ever.

To go back to Rick Rule's comments on the interview with Sean Wade & Mark Fairbairn earlier. Rick mentioned his key performance indicator in a co like POW is "net asset value per share".

Rick Rule said "If Sean can take £2mil of working capital and turn this into £10-15mil of net asset value, then I'll probably buy more stock"

Isn't that effectively what's already happened with just GMET to date? A circa £2mil initial working capital investment via POW's initial acquisition of Pilot Mountain from Thor .... now POW's GMET investment is worth £15mil+?

Rick Rule hinting he may be buying more?

Https://www.youtube.com/watch?v=r8E2I0DFev0

Sean Wade & Rick Rule from Mining Journal Select London yesterday

Mark Fairbairn (from Stockbox) has just announced on X that he is teeing up an interview today at the Mining Journal Select in London between Sean Wade & Rick Rule.

Hopefully video footage is available later on today or tomorrow.

Not concerned in the slightest PowerfulPete. Just slightly shocked that the market is still sleeping on this opportunity.

GMET investment value to POW is now worth £15.6mil or 81.2% of POW's £19.2mil market cap.

Everything else is currently valued at £3.6mil by Mr Market. Even though included in that £3.6mil is the following:

- £6mil Uranium JV with ACAM

- 25% Tati JV where the 75% partner is effectively building a gold processing plant for free

- £500k of FCM shares

- £2.6mil FDR pre-IPO

- Upcoming Saudi IPO

- GSAe revenue stream already making a profit with new contracts getting discussed

- Circa £750k to come from RRR in equity/cash in the next 9 months

So much to like here, the market will catch up.

I would certainly be smiling if the SP jumped up to 30-40p tomorrow morning, it would reassure me personally that a bit of logic has returned to the AIM market.

When I say "I don't care about the SP", it's because I only use the SP as a reference when entering and exiting a stock. During the time I am invested in a stock like POW, I simply look at the net assets of the business. Therefore I can see if the business value is increasing at a faster rate than dilution. In POW's case, apart from the odd 6 month period here and there, the business value has been increasing at a faster rate than dilution. Therefore, when POW raise £1mil, they turn that into a whole lot more. A company I certainly want to invest my capital in.

When POW come to present their year end accounts for the year ended 30th September 2024, the value of the business (assuming GMET stays 25p+ and the ACAM JV gets signed) will have jumped year on year at the fastest pace since it became POW in 2019. Again yet another tick for me.

I don't sit there using the SP as an emotional tool like most do on AIM and lot clearly do on this BB as well. This is why many bought in at 2.5p+/50p+ when POW had nothing to show for it. Just like many have sold out at a loss here sub 1p/20p because the SP is declining.

Those also blame rampy CEOs but its the CEOs job to positively talk about the business. If PJ said a few years ago "we are raising £1mil to drill Molopo, but watch out, its a bit of a long shot so don't throw too much money at POW" we would all think he was totally incompetent. We all know the risks in this sector. If you blindly follow a CEO's words then its shame on you that you cannot make your own financial assessment of a business. A CEO will also stated after discounted placing "we are delighted to have raised £1mil" even though the raise was done at a 60% discount. A CEO cannot ramp or put a positive spin on the figures on a set of audited accounts. Again, this is why the key performance indicators of a business like POW have to be taken from the financial statements and not the yo-yoing effect of the SP.

POW is now 17p and undervalued on almost every single financial metric, it's just a matter of time before the market comes to POW yet nobody touches it. 3 years ago when the SP was 3p+ / 60p+, on almost every single financial metric it was hugely overvalued, yet everybody bought it. The AIM market was just as illogical in 2021 as it is in 2024 but just on opposite scales.

The POW model is clearly working here, it just needs a better market for PJ & Sean's strong work over the past 5 years to filter properly into the SP. That day will come, so I'll pick up all the POW shares I can at these prices until the clear price disconnect corrects itself.

Https://miningaim.co.uk/power-metal-resources

Full report available to download in PDF using the above link.

"It’s fair to argue that the company’s market capitalisation should be at least double the

current £20 million. Even if corporate activity ceased tomorrow, POW’s constituent interests would

be worth far in excess of what the market currently judges the company to be worth."