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Terms of the Aussie gold agreement expire today with POW. The deal which was put into place in March 2024 and RRR were supposed to have done their due diligence by mid-April 2024.

Deal gives POW almost £350,000 cash in the first 2 months if signed (£250k cash + loan note repayments). Therefore if this is all signed off and agreed today, RRR need to find £350,000 cash by 7th August 2024. That's over 15% of the RRR market cap for starters before you even start looking into the other terms of the deal where POW are getting RRR equity. As far as I can see, RRR have almost nothing in the bank and therefore need to raise cash for this POW deal as well as cash for other working capital purposes. Do RRR even have the headroom to do this? Doubt it.

I'm a POW holder and I see RRR equity even more worthless than the Argentine Peso, however, as RRR control the Aussie Gold project and its gone absolutely nowhere for years whilst POW have massively built their balance sheet over the past few years, I'm happy to wave this goodbye for a few Argentine Pesos. More than happy for POW to contribute cash into a venture where the controlling holder has some drive .... unfortunately RRR are too busy posting fake bags of lithium and videos of Bukina Faso dig sites with half the national army surrounding the exploration team.

Hopefully this deal gets pushed over the line this week so POW can wave goodbye to RRR once and for all.

So POW closed on 31st May 2024 (last Friday) with a market cap (at the 17p mid price) of circa £18.9mil.

From the RNS released this week regarding their U assets, POW added the following value:

- 30% of a £20mil valued Uranium JV with ACAM where 50% (£10mil) of that valuation is pure cash = £6mil

- Less: Pre-IPO valuation of UEE IPO which is no longer going ahead = (£1.5mil)

- Less: 10% interest commitments on £2mil loan note = (£0.4mil)

ADDITIONAL VALUE ADDED THIS WEEK TAKING AN EXTREME PRUDENT VALUE APPROACH = £4.1mil

Now the £4.1mil above also doesn't contain any of the following either:

- £4mil in future cash add ons for POW if certain targets are met (said targets have not been clarified)

- The fact POW now have an extra £2mil in the bank for short term working capital deployment purposes

So based on the above extreme prudent view, you would logically expect as an absolute minimum, for POW to at least have an increase in its market cap with zero potential built in from the Uranium JV deal announcement of £4.1mil. Yet the mid price this morning is 17.75p and therefore the market cap has only increased around £0.8mil from £18.9mil to £19.7mil. Go figure!

So POW now find themselves in a solid financial situation where their 50% GMET investment + 30% Uranium JV + FDR pre-IPO valuation is now more than their entire market cap and the rest of their portfolio is in for free. In fact, you could now say that the market is now negatively pricing in most of POW's assets that are still a work in progress (Saudi IPO, GSAe revenue streams, Tati, Molopo etc.).

Guys are already on the ground in Saudi per the CEO's latest interviews, GSAe is already making an annual profit of £300k per latest financial figures, Molopo assays are at the labs and Tati next steps will soon be announced per the CEO as well. Certainly not a backdrop where you would negatively value all of those other assets!

As per the subject of this post, totally bizarre valuation but the investment opportunity clearly presents itself here and I will continue to take full advantage when I can as I have done over the past 12-18 months. It won't present itself at this SP forever as soon as a few wake up and smell the obvious cup of coffee here.

Latest video out now with Oliver & Dunagun Kaiser from Liberty & Finance.

https://rumble.com/v4zdooo-strategic-metal-under-radar-oliver-friesen.html

Liberty & Finance have over 100,000 YouTube subscribers so a large reach in the US marketplace.

Noticed a record high 32.97c trade went through the OTC market before for 50,000 GMET shares totalling around $16.5k. 32.97c is the equivalent of around 25.8p so the GMET stream train continues to shift forward at pace.

GMET @ 23.0p + warrants in the money = £12.5mil

U deal is £4mil down the line & 30% of a £10mil committed spend budget (£3mil) = £7mil for starters

I make that £19.5mil alone before we even look at the rest of the POW portfolio which is pretty much the POW market cap right now.

GMET investment (£12.25mil) + U deal announced today = POW's market cap alone.

The rest of the POW portfolio in for free at this price now! And POW are also cashed up from the U deal to accelerate the rest of their portfolio!

A no brainer of a buy if ever I have seen one in my view!

Fantastic RNS this morning:

1) POW's biggest JV to date (Doesn't take anything more than a quick google to see ACAM LP have bags and bags of cash!)

2) £10mil committed spend in a Uranium JV which POW will have 30% exposure to on a cash free ride basis. Per the RNS, financing for up to 5 major drill campaigns for Uranium.

3) £mils in cash coming into the POW bank account as part of the deal (£2mil now, up to £4mil later) much of which is non-dilutive.

So you now have POW crystalising some serious value here on their U assets which are all priced in at pretty much zero due to POW's GMET investment which is covering 60%+ of their market cap at present for starters.

Great work by Sean and the team. Placing fears now disappear for the foreseeable, the rest of POW's assets can accelerate at pace now working capital has come into POW and the POW model moves on to the next level and the big boys are sniffing around POW. All good as far as I am concerned and the POW balance sheet takes another step forward and is now over the £20mil mark per my calcs (assuming everything stated on the RNS is agreed). MCap alone was less than that on close of play on Friday. Huge upside here!

I don't care about the SP in short term anymore because I'm well positioned in POW and as long as the business keeps building the balance sheet as they are doing, opening up revenue streams, trying to sign big deal etc. then the market will come to me as a long term investor.

My focus is therefore on the balance sheet and business deals, not the SP and daily volume. Those looking at the POW SP in 2020/21 bought in solely because the "SP was going up" ... they didn't look at the fundamentals that they were buying a £30mil valued company which had £2mil on its balance sheet and low and behold they all got stung.

POW soon to have £30mil, £40mil, £50mil on its balance sheet. The market will almost certainly come to POW then and if the market gives POW another fair wind, who knows where the market valuation could be. £100mil market cap is my personal target in the medium/long term. Things are quiet at the moment, and unless things are noisy, then nobody gives a hoot on AIM. I think things will shortly get a lot louder in POW and it will be backed up by a solid financial fundamentals too with their growing balance sheet and not just on some dreamland hype from a drilling campaign like most junior exploration plays out there.

Got to have the solid balance sheet if you want dividends, buybacks etc. That's certainly the plan here and if the market cannot see it yet, then I'm willing to take a punt from these critically undervalued prices in my view. We all won't agree and that's the beauty of investing and nothing is anywhere near a certainty in this sector, but as soon as a few more agree with my logic here (and I think they will soon enough!), I make a lot more money than they do entering POW later down the line!

Couldn't care less about the short term volumes and the SP, I simply look at the business balance sheet as that's growing by the day, yet the SP isn't. The longer term investment case in POW is therefore getting stronger, yet the SP isn't moving up in proportion to the strengthening investment case. That's a stonewall buy opportunity in my books and exactly what I have been doing in the sub 15p zone for the last 12 months+ (sub 0.75p zone in old money)

Isn't the whole point of microcap investing trying to get yourself positioned in the stronger looking illiquid stocks as you make your money then when liquidity arrives. If no one wants to buy it today I'm fine with that because when people do buy into this tomorrow, I'm well positioned.

AIM in general has no liquidity at present and neither does the junior exploration sector. Many have left the marketplace due to this and they have been right to do so over the past few years. But POW have millions in investments they can tap into at their pleasure, deals being possibly worked on behind the scenes, multiple future IPOs, revenue streams via their GSAe acquisition. Soon investors will return to POW. With a £16mil market cap and £13mil+ in listed investments and pre-IPO investments, its only going to take one half decent bit of news from POW now to get their SP moving in the right direction in my opinion.

Those buying directly into the IPOs and pushing the IPO SPs up is all for POW's benefit too. Just because the POW SP doesn't shoot up, doesn't mean all their investments have disappeared either. Soon some of those POW investments will be monetised and dividends will become a reality. Its all part of the longer term business model. POW are financially sound compared to almost all of their sub £20mil market cap peers. POW will have their time in the sun soon enough, but at the moment the winds from the market are just against them.

GMET have the newsflow at the moment and the average AIM punter loves that. GMET looking very solid at present and DoD funding looking a very big possibility. POW a little quiet at the minute whilst their heads are down sorting out Uranium deals, Saudi IPOs, GSAe revenue streams etc. I would imagine. POW a different kettle of fish now. They are not a licence accumulator anymore and these bigger deals take time I imagine.

But are POW actually quiet when they hold 51% of GMET? That's the model at play here. Let the spin outs have the firework moments whilst it all cost POW 0 pounds, 0 pence and 0 time! GMET doing nothing wrong at present and that's all for POW's benefit as the controlling shareholder.

That's what I hope Sean is positioning POW to do with their Uranium assets. Get someone to partially take ownership of some or all of the U assets in an initial lucrative deal for POW where POW also hold a % of those Uranium assets moving forward on a cash free ride basis. That's what was effectively planned with the UEE IPO anyways which is currently taking a backseat. Now Sean has indicated on the RNS at the end of March 2024 that a better deal is now on the table for POW holders. That deal almost certainly won't involve POW raising £5mil to explore those U assets which is the minimum amount that would be need to make a dint on those assets. That's a high risk, dreamland investing strategy which happens in many other AIM listed juniors and sorry to spoil the ending, bit it tends to end in tears 99.99% of the time. I'd sell my entire POW holding tomorrow if that was announced as the plan.

All about doing the opposite to those around you at the minute. POW acting in the total opposite fashion to their peers with this model, so I'm happy as a contrarian to also do the opposite to the average AIM punter and back POW at this "grotesquely undervalued" level as PJ put it on X a few weeks ago . Time will tell who's right.

Disagree Sol001.

POW made the strategic move in 2021 buying up all the U licences for pennies in 2021 when nobody wanted them. Just like they did buying Pilot Mountain when nobody wanted strategic tungsten projects. POW spent probably £1.5mil getting Pilot Mountain. Their GMET investment today is worth £8.7mil! The POW model here is working very well. The market will catch up soon.

2024 should be the year we monetise/crystalise that strategic move in the Uranium space in my opinion. POW have probably paid £500k to date on all their U assets. Let try and crystalise some value here as part of those ongoing U asset talks announced late March 2024 via RNS and reduce the cash burn. The POW model is all about reducing risk after all.

Can POW get an outright sale? Can POW get a JV to take over them so POW get the cash free ride? Will a U deal go ahead or will it simply be back to the UEE IPO plans? Time will tell, what I personally don't want to see is POW holding a huge land grab they cant do nothing with as the U space hots up. You are talking some serious dilution at this stage in the POW business model if you want to explore all those U licences thoroughly. I hope that option is at the bottom of Sean's to-do-list!

So POW have issued £75k shares today for a 75% stake in a business that makes £300k per annum (based on the 6 months accounts up to 31/12/2023).

So POW now have £225k a year profit on our books (75% of £300k annual profits). That's a breakeven on our initial investment within 4 months! .... what's not to like about that?

All future cash/equity to be issued as part of this deal only happens if this venture is making serious profit and when POW issues more cash/equity, POW are making far more than they are giving away.

Its a very smart and well structured deal and clearly from the points stated on today's RNS the business is looking to scale up operations in Saudi etc.

I'm 100% correct on this one. Forget websites, historic % holdings etc. Simply take the latest GMET RNS which states the shares in issues (RNS on 13/05/2024) and then take the POW holding they stated on the latest TR1 (RNS on 17/05/2024). Then its a simply maths calc as below:

GMET shares in issue today (see warrants RNS on 13/05/2024) = 106,777,165

POW holding today (see TR1 RNS on 17/05/2024) = 53,998,159

POW % holding (see TR1 RNS on 17/05/2024) = 50.57%

POW are clearly supporting GMET, its in black and white. Why would they not?

Totally wrong again Paul. Where are you getting your figures from?

GMET shares in issue today (see warrants RNS on 13/05/2024) = 106,777,165

POW holding today (see TR1 RNS on 17/05/2024) = 53,998,159

POW % holding (see TR1 RNS on 17/05/2024) = 50.57%

It couldn't be any easier to work out!

No totally wrong Paul. POW have never held 54,426,265 GMET shares. The GMET shareholding % on their website isn't updated very often.

POW had 52,248,756 at IPO and that has remained the same amount. They even released an RNS confirming their GMET holding again on 08/04/2024 confirming they still had 52,248,756 shares. Ignore the % as this fluctuates with dilution. Its the shareholding that matters.

Now they have 53,998,159. The increase being the 10.75p warrants they just exercised.

No totally wrong Paul. POW have never held 54,426,265 shares. The GMET shareholding % on their website isn't updated very often.

POW had 52,248,756 at IPO and that has remained the same amount. They even released an RNS confirming their GMET holding again on 08/04/2024 confirming they still had 52,248,756 shares.

Now they have 53,998,159. The increase being the 10.75p warrants they just exercised.

Incorrect - POW took all their 10.75p warrants Paul .... if we do the maths:

As at the 10/05/2023 IPO, POW had 52,248,756 GMET shares, they held 1,749,378 10.75p GMET warrants. As per the RNS today from GMET POW now hold 53,998,159 GMET shares. POW therefore took all their warrants (as well as an additional 25 shares per those figures but that could be just my calcs being wrong!)

The only reason their % holding dropped is due to the other GMET warrants being exercised which has diluted GMET shareholders.

POW's holding today at the 16p mid price is 53,998,159 shares @ 16p = £8,639,705

As per the RNS today from GMET, POW now hold 53,998,159 GMET shares. POW therefore took all their 10.75p warrants on offer last week. % holding in GMET down to 50.57% due to warrants dilution in GMET and the recent Purebond strategic placing.

POW's shareholding value in GMET today at the 16p GMET mid price is 53,998,159 shares @ 16p = £8,639,705 which represents around 52% of the entire POW market cap!

Will repost my comments on here from a few weeks ago (with a few minor updates) just to outline the undervaluation in POW again:

POW market cap today = £16.8mil

GMET Holding (assuming POW took all their 10.75p warrants) = £8.4mil

FCM Holding (temporarily suspended) = £0.5mil

UEE pre-IPO valuation = £1.5mil

FDR pre-IPO valuation = £2.6mil

VALUATION OF JUST THE ABOVE = £13.0mil

The market now values the following at just £3.8mil:

- Cash in the bank (probably £500k+)

- Molopo – Conductor hit at depth, assays to follow in the coming months

- Tati – Near surface gold found to date with opportunities for tailings processing for future revenue.

- 75% stake in GSAe - Future revenue stream (GSAe posted a 6 month profit for the period ended 31/12/2023 of just under £200k). So that £400k profit per annum before anything ramps up worth £300k (75%) to POW.

- Saudi IPO & future Saudi deals which Sean has stated are near. Sean also stated in the Proactive event a few weeks ago "the Saudi IPO will be POW's biggest to date". GMET upon IPO was worth over £4mil to POW shareholders. Assuming the Saudi IPO will therefore be higher than £4mil.

- UEE IPO / U asset deals which are surely going to worth more than the UEE pre-IPO valuation of circa £1.5mil otherwise Sean wouldn’t have bothered listening to 3rd parties as announced last month.

- NBGC disposal worth up to £1.5mil as announced last month and £250k initially in cash.

- ION Battery Resources future IPO (contains POW's early stage Lithium assets)

- New Horizon Metals - future Aussie IPO which POW hold 20% of at present

- Silver Peaks (30% minority stake)

- Haneti (35% minority stake with partners Katoro Gold, Katoro Gold now have POW & Ex-POW executives involved)

- Any upside from GMET as they move into a key Pilot Mountain drilling campaign with DoD funding possibly around the corner

What a strange strange market we are currently in! Almost no potential priced in at all. I'll continue buying POW at these levels until the market finally catches on.

Regarding POW's Uranium assets / Uranium IPO, the following update was released on 25/03/2024:

"The marketing process for the planned IPO of UEE continues to attract significant interest from a range of investors, including institutional investors, HNWs and retail investors in the UK and elsewhere, including a potential cornerstone investor.

However, a number of significant potential strategic investors have indicated their preference for alternative deal structures which may include a different combination of assets, or an enlarged asset set with an enhanced business model.

The Board of Power Metal is therefore considering, from its point of view, all options and will revert in due course on the progress of those discussions and how this would affect the proposed IPO of UEE both in terms of timing and structure."

Sure those potential talks are coming to an end now after 6-7 weeks? If successful, the market will be updated shortly and the deal for POW shareholders should be much better than what POW shareholders would have received if the UEE IPO went ahead in March 2024 when it looked almost weeks away from listing. If not, then its back to the UEE IPO plans which I would expect it would list within a matter of weeks of the next Uranium update.

Sean seemed to hint on a recent video with Rick Rule a couple of weeks ago that news should land before the Rick Rule Symposium in Florida which POW are attending in the second week of July 2024. I personally expect to hear news from multiple other fronts as well (Saudi IPO, GSAe, Molopo assays) before July 2024 too.

Fully agree, the valuation gap here is crazy as simply no potential is priced in during a period where POW seem to have plenty going on behind the scenes.

Original 10.75p warrants O/S as at 10/05/2023 = 18,420,222

Converted to date = (10,195,542)

REMAINING 10.75p warrants O/S as at 07/05/2024 = 8,224,680

Value of 8,224,680 10.75p warrants remaining = £884,153

Expiry date of 10.75p warrants is 10/05/2024 (THIS FRIDAY)