Member Info for Tray556

*Should say "Interim results released as at 31/03/2024"

Interim results released as at 31/03/2023. Total assets showing at £16.2mil. Since then the following two key value events have happened:

- GMET moved from 13.5p to 26p adding circa £7mil to the above asset base.

- £20mil Uranium JV with ACAM. 30% for POW so £6mil (£2mil loan note pretty much cancels out with the £2mil in the bank at this stage)

£16.2mil net assets as at 31/03/2024 + £7mil GMET investment increase + £6mil Uranium JV = £29.2mil assets as at 28/06/2024 for starters (before mentioned GSAe revenue stream deal, £1.5mil RRR deal for NBGC, 25% Tati JV etc).

A company with circa £29.2mil net assets today can be picked up for a market value of £19.7mil at the 17.75p mid-price. An absolute no brainer if you ask me!

Of course there will be plenty still saying "but I'm not making any money and I'm in the red" or "the share price only goes down" .... doesn't bother me, it's clear as daylight that value is being built here and the POW model is working. POW can't control the market or share price, they can only continue to build value and they have built almost £30mil now for POW shareholders. The market will come to POW soon enough if they continue on this path.

I've said it 100s of times, those moaning here bought POW when it was valued at £30mil+ in 2021 when it had a few million to show for it. Can only blame yourselves for that. Now POW actually has around £30mil of value but you can pick it up for £19.7mil today yet nobody wants to go near it. Go figure!

Couldn't care less about the market cap here at the minute. I've picked up all my cheap POW shares over the past 12 months and certainly not looking to sell anytime soon. Its the growing balance sheet value I care about and that should be the primary concern of any POW holder if they understand the model they are invested in. That's the proof that dilution isn't effecting my POW holding here. If POW raise £1mil, they turn it into £2mil and so on.

£29mil added to the balance sheet from raising far less than £29mil over the past 5 years. Keep doing that, and we will all make money some day. It's also proof that POW are a solid business with a keen eye for the financials unlike 99% on AIM.

Paul Johnson hasn't sold a POW share to date. Slightly upped his stake since leaving the CEO position at POW and still holds just under 4% of POW stock.

GMET = £14mil

ACAM Uranium JV = £6mil

That's your £20mil POW market cap if you look at what the market prices POW at. Do POW have anything else? Well the above is just the tip of the iceberg. Most of the POW portfolio is now in for free.

With a £20mil market cap and a £30mil balance sheet, it's very very difficult to state any meaningful negatives about the POW business model at the minute apart from "well the SP is going up" .... that's totally out of POW's control and that issue is based solely on AIM market liquidity and poor sector confidence.

The business model here is working but AIM retail don't understand it at present.

ART123 - POW are spending most of their time building their balance sheet to what must be now £30mil+. Molopo is just a bonus in the POW portfolio.

Power Metal Resources was founded in late 2019 via a financing round of around 10p (post consolidation). Now worth around 18.5p per share so in the last 5 years, POW have added 85% to their SP since they were born. I can only comment about POW as that's ultimately when I first became invested.

RRR were always the majority holders in the Aussie gold. RRR have been anything but cash rich and they make POW look like Bill Gates, so how was the original JV ever going to work? No one could finance any meaningful exploration when the costs were 50.1% RRR, 49.9% POW.

How RRR are now going to finance anything moving forward is anyone's guess now they have 100%. $40,000 AUS per month I'm led to believe that project costs alone. A decent sized drill campaign will cost £2mil. That's more than RRR's market cap!

I'm more than happy to see POW take either a lump of cash to walk away from this one, or if RRR don't have the cash, then POW will end up with a huge RRR stake anyways and it will be significant enough that if RRR do perform a miracle and fund something at this Aussie Gold asset, then POW will reap the rewards anyways on a cash-free ride basis. Let RRR take all the risk yet POW will still have some of the reward. Again good business.

I find it quite staggering how many AIM investors don't understand the POW business model at present. All because the SP isn't flying. The balance sheet is growing on almost a quarterly basis under Sean Wade. Cash free rides are being taken everywhere.

Why would POW want to associate themselves any longer with the likes of RRR who have raised 10s of millions over the past 15-20 years and have nothing on their balance sheet to show for it.

POW from 2019 had a £1mil balance sheet and now they have somewhere in the region of a £30mil balance sheet. They have added £29mil to their balance sheet in 5 years by raising far less than £29mil. That to me is good business and somewhere where I want to have my capital personally.

To correct my below post, its not "1 for 1 warrants" in the event of any RRR shares being issues. Its on a "1 warrant for every 2 shares issued" basis.

So in reference to my below scenarios, if 625,000,000 shares are issued at 0.04p, its ONLY 312,500,000 warrants at 0.06p with a 3 year expiry.

The main purpose of my post below was to show the epic RRR dilution that's coming!

Anyways, with £10mil in the bank for Uranium exploration coming soon from our 30% ACAM JV, and a Tati Feasibility Study along with a gold processing plant and associated mine infrastructure getting done for free as part of our 25% Tuscan Holdings JV ... the RRR deal is merely a drop in the ocean for POW holders anyways.

POW today posted their TR1 in Red Rock Resources (RRR) showing a 3.87% holding or 166,666,667 shares following on from the completion of the Victoria Goldfields deal. In addition POW hold 100,000,000 0.25p warrants. This is just the start of the deal.

Further upcoming elements of the deal are as follows:

- RRR have to pay POW £250,000 CASH (cannot be RRR equity) by no later than 11/08/2024.

- POW also hold a £250k convertible loan note with a conversion price equal to the price of any placement of new ordinary shares of RRR raising proceeds of over £200,000. Should conversion not be undertaken by 08/09/2024, the CLNs of £250,000 are repayable immediately as cash. RRR's SP is currently 0.04p, so if they raise at that price, the £250k CLN is worth 625,000,000 RRR shares to POW (that's with no discount factored in!). Plus POW would get 625,000,000 0.06p 3 year warrants (50% premium) as part of the terms. That's about a further 15% of RRR before we even get to the next step!

- £250k is payable to POW in cash or RRR equity (at RRR's election) nine months after completion (11/03/2025). At the current RRR market price of 0.04p, could be another 625,000,000 RRR shares for POW + 625,000,000 0.06p 3 year warrants.

- There are two more £250k hurdles regarding RRR achieving a Gold JORC resource with the NBGC asset, but I think its prudent to say those hurdles won't be getting activated!

As I have said ever since this deal was put forward back in March 2024, astronomical dilution for RRR is on the horizon and their stock is going to resemble something like the Venezuelan Bolívar before too long ! POW could take a massive chunk of RRR in this deal. All RRR are getting in return is 49.9% of a cash burning Aussie gold asset.

A better scenario for POW holders is that POW just receive £250k cash at each hurdle and RRR dilute themselves to death just raising the cash to pay POW. That's my preference anyways.

To conclude, in my opinion its Sean Wade 1 v 0 Andrew Bell at this stage. Could well be 5-0 at half-time unless RRR get an influx of cash for some unlikely source or their SP dramatically improves (also unlikely).

So I now make that in terms of current/potential cash free rides:

30% Uranium JV - Cash free ride with £10mil for Uranium exploration in the bank for up to 5 high impact Uranium exploration programmes.

25% Tati JV - Cash free ride with exploration all paid for as well as possible plant & mine infrastructure for gold production on just one Tati licence.

49% GMET - Cash free ride in a £25mil+ valued outfit on the radar for US DoD funding and drill campaign ongoing. Likely £2.5mil+ in the GMET bank account.

59% FDR - Cash free ride in an early stage Uranium/Gold outfit which will be cashed up once IPO is live with likely £2mil+ in the FDR bank.

23% FCM - Cash free ride in an early stage Canadian outfit with circa £500k in the FCM bank

20% New Horizon Metals / Aruma Resources - Small cash free ride in an early stage Australlian outfit.

4% RRR - Small cash free ride and hoping for a miracle with likely £0 in the RRR bank account! Due to structure of NBGC deal, most likely will end up with a much higher % of RRR in due course.

88% Molopo - Drilling paid for already. Possible JV on the back of upcoming assays results for maybe another cash free ride.

75% GSAe - Future revenue stream and already turning a profit based on latest financial info. More large contracts in the pipeline which should make this venture more profitable and provide POW with the free cash flow to run its own operations self-sufficiently in the future.

Power Arabia - Future IPO, future cash free ride.

ION Battery - Future IPO, future cash free ride.

Not bad for a £20mil valued company and plenty of low risk / high reward moves. The market just simply has to catch up now. The POW SP should be 100% higher from here just to hit fair value in my opinion. Still a chunky seller around on a daily basis it seems holding this SP back bizarrely.

Yes, Tati deal looks very good! Key takes are:

- New partner pays for exploration for the next 2 years with the goal of establishing a mineral resource suitable for a Feasibility Study.

- New partner will be fully responsible to finance the construction and completion of a processing plant and associated mine infrastructure required to produce gold within the Licence.

- New partner may then exercise the Option to subscribe for 75% of the venture.

- The intention is for the venture to become a dividend generating company to be paid to the shareholders on a pro-rata basis from surplus cashflow from the gold mine (75% new partner / 25% POW).

Remember, this is all currently valued at £0 and this clearly adds value for the Tati project.

The current (severely undervalued) picture for POW is as follows:

LISTED INVESTMENTS

GMET (including warrants in the money) = £13,640,000

FCM = £580,000

RRR (166mil shares assuming NBGC deal has completed + £250k cash due in 2 months, £250k CLN & £250k in 9 months & £94,400 loan) = £915,000

Aruma Resources (from recent New Horizon Metals transaction) = £45,000

TOTAL LISTED INVESTMENTS = £15,180,000

ADD: 30% of £20mil Uranium JV with ACAM (ignoring future add ons) = £6,000,000

So just the above is equal to £21,180,000 alone vs a market cap today of £20,500,000. So even if I stopped here the POW investment case is a clear buy opportunity right now.

To continue, no potential is priced in regarding the listed investment or the Uranium JV deal which also happens to have £10,000,000 in the bank for exploration which will begin shortly. That's up to 5 high impact drill campaigns alone per the recent news release.

That then leaves the following in for free:

Saudi IPO (will be the biggest IPO to date according to Sean)

FDR IPO - Pre-IPO valuation is £2,575,000 but being valued by the market at £0?!?!?

GSAe revenue stream which is already making a six monthly profit of circa £150,000 and additional contracts getting discussed.

Cash in the bank (but pretty much nets off with the £2mil loan note I would imagine)

Molopo which has assays pending

Tati next steps to be announced soon

ION Battery Resources IPO - Will be next off the "IPO pipeline"

35% holding in Haneti (65% held by KAT)

30% holding in Silver Peaks (70% held by private owners)

Charles Archer's recent daily articles continue to state the above clear as day message, but I'm still yet to see any buy in. Arguably the SP need to move 50% to 75% just to reach fair value the investment case is now that strong from 18p.

Unfortunately this is AIM, and the average punter continues to chase rainbows rather than investing in the obvious. POW will move up to a much more fair value soon enough. It will only take one large buyer to get the AIM herd interested in my opinion but I just cannot see this SP hanging around in the sub 20ps for much longer.

That broker note was done when 1.34billion RRR shares were in issue @ 19/01/2023.

At 14/06/2024 (around 17 months later) the number of RRR shares in issue is circa 4.3billion shares (including the 166mil to be given to POW in the first hurdle of the aussie gold deal). Markets have been tough, but that's dilution overload in my view.

I take broker notes with a pinch of salt (like any logical investor), but even if you wanted to take this broker note as gospel, you are simply comparing apples with oranges now due to the amount of additional shares in issue from Jan 2023.

My last post on here anyways. Just wanted to give a more balanced view on here over the past few days for anyone interested as its always good to hear both sides of the debate.

Apologies if this has caused any offence to the RRR holders and all the best with the aussie gold asset. Hope you get it to the IPO stage ASAP.

News - its 166,666,667 shares @ 0.15p = £250,000 which is just the first 1/6th of the deal. It's the six x £250,000 hurdles which form part of the overall £1.5mil valuation of the deal. The maths (no of shares x share price) regarding how you get to £250,000 makes no difference to the first hurdle. It's therefore forms no logically reasoning around how everything should be valued at x3 higher now just because this first hurdle was arranged at 0.15p when the RRR SP is at 0.05p.

It could have been:

625,000,000 shares @ 0.04p = £250,000

500,000,000 shares @ 0.05p = £250,000

250,000,000 shares @ 0.10p = £250,000

125,000,000 shares @ 0.20p = £250,000

1 share @ £250,000 = £250,000

All the above would have satisfied both parties as its just playing with simple maths to get to £250,000.

What does now critically matter is the RRR SP performance between now and 9 months time. Poor SP performance means more dilution and more shares for POW and vice versa if the RRR SP does well. Unless of course, as many of the £250k hurdles owed to POW can be paid in outright cash.

I would say its in both RRR & POW's interests that as many hurdles are paid in cash. POW won't want a stack of RRR shares and RRR won't want to be issuing astronomical amounts of equity.

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

"By now, one hopes you get the picture — Power Metal is languishing with a market capitalisation of circa £20 million and it should be at least 50% more than this. I don’t even need to convince you of this, simply present the company’s constituent parts, provide a simplified valuation — and then add them up."

Just need to get this message in front of a new audience willing to buy shares in this sector and its game on for POW I feel from this critically undervalued level.

Playtime - Maybe AB is hoping for the DRC to payout but how long have RRR holders been waiting for that now? Years?

POW holders will be certainly hoping the DRC pays out too. POW holders want the £250k cash at every hurdle of this deal if possible, not worthless RRR paper.

The deal is all about POW disassociating themselves from the likes of RRR and also focusing on projects they have the majority stake in.

The risk now all moves to RRR and POW will either end up with a few RRR shares and a chunk of cash or a small about of cash and a chunk of RRR shares.

Either way I’m happy with the outcome of this deal for POW holders.

Totally entitled to have the view specinvestor99 that AB fleeced POW and glad as an RRR holder you think that.

The first £250k of stock is at 0.15p regardless so 166,666,667 shares regardless of RRR share price performance and they will be issued to POW next week as the first £250k hurdle in this deal.

£250k in 2 months time has to be cash and RRR don't have that cash today (as far as I am aware) so that's on RRR to raise it on the market at whatever price they can get away. More dilution though unless cash is in the bank.

The £250k loan note is convertible at the price of any RRR placing over £200,000 in the next 6 months from 08/03/2024. So if RRR raise over £200,000 at any point in the next 6 months at say 0.05p, then the £250,000 CLN would be effectively converted into 500,000,000 RRR shares for POW. At 0.04p its 625,000,000 RRR shares and so on. Should conversion not take place by 07/09/2024, £250k must be paid to POW in cash. Again RRR highly likely won't have £250k cash by 07/09/2024 so the CLN will turn into RRR equity. Just depends again at the price of the £200,000+ placing.

The above logic also applies to the £250k due in 9 months after completion of this deal but could be paid in cash if RRR have it. RRR don't have it and most likely won't have it 9 months time. So this will likely just be converted into equity at the 10-day VWAP. If at this point the SP boots back up to 0.10p, then its only 250,000,000 RRR shares for POW.

Any shares issued above will also come with 1 for 1 warrants at a 50% premium to the exercise price.

So to summarise, apart from the first tranche of 166,666,667 RRR shares at 0.15p, any other equity issued is CRITICALLY dependant on the RRR SP performance at the time unless RRR elect to repay all the £250k hurdles in cash. The lower the RRR SP the more dilution that occurs and the more shares POW get. The higher the RRR SP the lower dilution and the lower the number of shares POW received.

Yes POW have taken the first £250k tranche at 0.15p, but the remaining £250k hurdles will all be don't at a much lower SP unless the RRR SP dramatically improves in the short term. POW's average will therefore be much much lower than 0.15p an RRR shares once all the £250k hurdles have been exercised.

Paul Johnson is sharing handwritten asset analysis on X regarding POW because it takes a while to list out all of POW's assets and the POW balance sheet is over £20mil. A position only RRR can dream of after wasting shareholders funds for decades. Paul still owns almost 4% of the POW stock after stepping down as CEO 15 months ago.

Its highly likely that Paul Johnson will be adding over 1billion of RRR shares to the list of POW assets soon enough .... but at that point the 1billion RRR shares will probably be worth about 50p after the dilution that's coming shortly.

OK then, lets say a miracle happens and this gets quickly listed on the ASX for $20mil AUS which is £11mil give or take.

After the pre-IPO & IPO round and the amount of time and effort it takes to list a bunch of assets like this what will RRR's ultimate holding in the IPO be? Lets say 50% tops. So at that point its only going to be worth £5.5mil to RRR. This is in a world where a lot of stars have to align for RRR too and RRR as the top co have to go through some epic dilution as well as described further down this chat.

As at 13/03/2024 the Power Metal book value of NBGC/RRAL Interests was £870,784 so you can double that book value now RRR have taken 100% control. So you are talking a book value at the moment of £1.75mil.

Like I said, I want RRR to do well now as an indirect holder of RRR shares via POW. I'm just stating actual facts, not "news facts".

All I've done is explain the terms of the deal news, no ramping or deramping. My explanation confirms all the caveats and what would happen if the RRR SP moves up or down from here. Yes I've not mentioned this £12mil valuation that you bound around because its total nonsense.

Also convenient that you are suddenly off for lunch when a few actual facts get thrown your way. Most of the time it sounds as if you never stop for lunch because you are posting that much garbage on here.

100% in POW's interest now for RRR to do well. Just simply explaining the terms at play here of the £1.5mil deal.

FYI - I don't own RRR shares and I do own POW shares. Seems I at least got that bit right.

If you want to hear some fact, see below regarding the up to £1.5mil consideration deal which has been agreed between both parties (for news I'll repeat again for the 60th time that both NOMADs have agreed this):

If we assume RRR won't find anything in this NBGC venture and the two JORC hurdles don't get triggered (I hope they do but in the world of junior exploration its unlikely). If we also assume that no discount will be offered on any placings in between now and all the other equity hurdles in this deal and the RRR SP remains at today's SP of around 0.05p then POW will end up with somewhere near the following in RRR:

- 166,666,667 shares on Day 1

- £250,000 CLNs at 0.05p = 500,000,000 RRR shares

- £250,000 payable in 9 months time at 0.05p in equity at 0.05p = 500,000,000 RRR shares

So that's 1,166,666,667 RRR shares (yes almost 1.2 billion RRR shares!) that POW will hold + £250,000 in cash (more dilution for RRR holders) + 1,166,666,667 RRR warrants. That is all without any of the JORC hurdles getting triggered and any consideration for further working capital.

If the RRR SP drops any further, POW will have an even higher amount of RRR shares and vice versa if the RRR SP improves.

Does anyone take this "news" poster seriously?

I mean, the only logical conclusion that I have come to is that he could chat a glass eye to sleep ...

There is optimism, being on another planet, and then there is news' wild and wonderful views.

So further to the below, if we assume RRR won't find anything in this NBGC venture and the two JORC hurdles don't get triggered. If we also assume that no discount will be offered on any placings and between now and all the other equity hurdles, the RRR SP remains at today's SP of around 0.05p then POW will end up with somewhere near the following in RRR:

- 166,666,667 shares on Day 1

- £250,000 CLNs at 0.05p = 500,000,000 RRR shares

- £250,000 payable in 9 months time at 0.05p in equity at 0.05p = 500,000,000 RRR shares

So that's 1,166,666,667 RRR shares (yes almost 1.2 billion RRR shares!) that POW will hold + £250,000 in cash + 1,166,666,667 warrants. That is all without any of the JORC hurdles getting triggered.

If the RRR SP drops any further, POW will have an even higher amount of RRR shares and vice versa if the RRR SP improves.