Member Info for Tray556

Disagree Roger - The Pilot Mountain project (held by Golden Metal Resources and POW should hold a circa 50% holding in GMR after the IPO goes live in Jan 2023) holds a JORC asset.

About Pilot Mountain Project
Pilot Mountain tungsten project in Nevada, USA which has a JORC 2012 Indicated and Inferred Resources Estimate on 2 of the 4 known deposits.

The 5,908-acre Project is centered around four existing mineral deposits including Garnet, Good Hope, Gunmetal and Desert Scheelite all which possess skarn-style tungsten-copper-silver-zinc mineralisation.

The Desert Scheelite Indicated and Inferred Resource comprises a 2012 JORC Compliant 9.9 million tonnes @ 0.26% WO3, 0.14% Copper, and 19.4g/t (grams/tonne) Silver, announced on 22 May 2017. The Garnet Inferred resource comprises a 2012 JORC Compliant 1.83 million tonnes @ 0.36% WO3, announced on 22 May 2017.

On 13 December 2018, Thor announced an upgraded and increased mineral resource estimate showing the Desert Scheelite mineral resource estimate comprises 10.7 million tonnes at 0.26% WO3, 19.38 gram/tonne Silver (Ag), 0.15% copper (Cu), & 0.38% zinc (Zn) (above cut-off grade of 0.15% WO3).

My point being every time the short-term SP moves up, Roger thinks POW are doing unbelievable well as a business and every time the SP drops, POW are the worst company in the land.

Roger - Your lack of knowledge in the POW business model is almost embarrassing at times. Your entire assessment of how POW are doing for months now is solely based on the short-term SP movement. How you make any money from the stock market is beyond me.

POW with 20% pre-IPO exposure to a new predominantly Copper IPO as they continue to build their balance sheet substantially. All Australian licenced ground in the IPO with two other Austrailian private companies involved. You would have to assume this will be on the Australian markets in Q2 2023. Key takes from the RNS below:

-- A new company ("NewCo") will acquire outright the shares in POW Australia, RAB Resources and New Horizon (the "Merger Parties"). Following the Merger Power Metal Resources plc will hold a 20% interest in NewCo.

-- POW Australia will be renamed Wilan Resources Pty Ltd shortly after completion of the Merger, enabling Power to retain the POW Australia name.

-- Following the Merger, NewCo will then commence the process for a planned listing targeting Q2 2023 or the acquisition of NewCo and its interests from an existing listed vehicle, subject to agreement of all the Merger parties.

PJ already stated on recent interview that there will be another Tati drill programme to test more of the 8km Tati gold zone that has been discovered (near surface gold mineralisation on both ends of the 8km zone confirmed so far and some spot over 40g/t+)

PJ also confirmed that they want to test at more depth too (only 50-60m deep RC drilling done so far). I'm guessing we go RC drilling again as its cheaper. If we do in fact go diamond drilling this time, then I would assume there is some third party interest as majors would most likely want to see diamond drill core before committing to any sort of JV agreement.

I guess we just need to see the next Tati steps in writing. Would also be good to get an update on what the plans are with the fines dumps / tailings. Would be interesting if we could generate a bit of revenue from this with there being an established processing plant just a 15min drive from the Tati property.

Nevertheless Tati is an interesting proposition which the market is just simply ignoring at the moment like most of POW's projects.

So the placing price looks to be 10p for the upcoming GMT IPO of which POW hold 49,874,437 GMT shares per Companies House (as at 04/05/2022 so may have changed since then) .... Therefore once GMT floats assuming the shareholding of 49.8mil is correct, POW's investment value is worth £4,987,444.

GMT looking for a market cap of £6mil + funds raised. The aim is to raise £1.75mil+, if this is exactly achieved then the market cap will be £7.75mil upon listing (77.5mil shares @ 10p). That would give POW a GMT stake of circa 64% ... maybe more than the anticipated £1.75mil will be raised and POW's holding will end up closer to the 50% mark that PJ estimated on a Telegram group Q&A a few months ago

The pre-IPO price in GMT was 6.67p so if we take the 49,874,437 shares per Companies House and do the maths, this comes to £3.325mil which is the amount stated on POW's website. I guess once the IPO goes live at 10p, this will immediately become £4,987,444 which again is another big chunk of value considering the GMT assets were put together by POW for about £1mil in total (the main cost being Pilot Mountain)

If I bring in the increased valuation of GMT into my calculations I get a POW balance sheet of around £16mil now vs £23mil market cap. That means in theory the market is valuing the potential of the following directly held POW projects at circa £7mil:

- The ongoing Molopo 2,600m drill campaign with visible Nickel sulphides identified in multiple holes so far.
- Near surface bonanza gold found at Tati with a follow drill programme to be announced very shortly.
- 10 uranium licences, 2 Uranium licences already sold for £1mil+ equity in UEE PLC
- Lithium licenced ground next door to a $2billion aussie dollar company

The POW sellers also appear to be done apart from those who convinced themselves that the latest Molopo RNS was negative. POW should have a good 2023 from here with FDR to go live and maybe NBGC too!

A link below in case anybody missed it mid-week.

https://ukinvestormagazine.co.uk/power-metal-resources-investor-presentation-december-2022/

Per a recent broker report dated 18/11/2022 Thor Mining PLC held a significantly reduced shareholding of 23,118,920 shares in POW. This was originally circa 52,000,000 after the Pilot Mountain Deal and early settlement of any future benefits from the project.

On 21/11/2022 there were around 6,500,000 block sells and on 23/11/2022 there were around 3,000,000 block sells. Between 18/11/2022 and today, there were also some other smaller blocks sells on other days.

As the final 12,000,000 POW shares have a selling restriction until 31/01/2023, I think it is safe to say that the Thor Mining PLC relentless distressed selling has now ended. The final 12,000,000 will then be dumped in February 2023 after the Thor Mining PLC director emailed me to confirm that Thor Mining PLC will not be holding any equities in other junior exploration companies.

I think over the next couple of months, the POW share price should start to move north sharply on any hint of good news. Over the past 18-24 months POW has been plagued by sellers (Andrew Bell, Red Rock Resources, Thor Mining, warrant sellers) however, the selling pressure should now have subsided significantly.

*Anyone posting on here saying they feel POW are overvalued have just simply not done their research into this company and do not understand financials. This company is severely undervalued full stop. Ignore the noise, ignore the herd exiting today, this is a very promising company for next few years.

A rather strange reaction to the latest RNS today, however, the strangest comments I have seen on here today are how a number of investors feel that POW is overvalued. The problem with POW is they are a little different to your average junior resource company, yet the market still views them as holding a few projects and because the Molopo RNS today didn't contain 10% Nickel grades, a few private investors have just lost patience thinking its Molopo or bust.

POW have built a balance sheet of circa £14.5mil as at today. This is mainly from investments in other companies. Some of these companies are live, and some are not yet live. Nevertheless as some point in the medium term, £14.5mil is available for POW to turn into hard cash whenever they need it (subject to lock in periods expiring). Now these investments are valued at £14.5mil in poor market conditions and a weak market sentiment. A return to a slightly positive market would simply send these investment values to £25mil in an instant. Some of these investments that are about to go live will be fully funded with £millions in the bank for drilling too.

At present prices, POW have a £14.5mil balance sheet vs £23mil valuation. That is a valuation of £8.5mil for POW's directly held assets which are:

Molopo Farms Complex (88%)
Tati (100%)
Athabasca - 10 Uranium Properties (+2 sold to date for £1mil+ equity in Teathers Financial PLC)
Haneti (35%)
Silver Peak (30%)
Wilan (100%)
Authier North (up to 100% earn-in)
Togo (100%)
North Wind Lithium Project (100%)

In the above projects, visible Nickel sulphides at Molopo, high grade near surface gold at Tati, third party interest re Athabasca, high grade Silver assays at Silver Peak and the Authier Lithium licence which borders Sayona Mining who are valued at 2 billion aussie dollars!

Anyone posting on here saying they feel POW are undervalued have just simply not done their research into this company and do not understand financials. This company is severely undervalued full stop. Ignore the noise, ignore the herd exiting today, this is a very promising company for next few years.

"Which do people prefer, a dilution or sell POW shares or the lights go out?" - Seems like a great investment case in Thor at the minute when price is down at these levels. Thor simply the distressed POW seller and the block selling is having a massive impact on the POW price. Pilot mountain purchased for circa £900k by Thor, Thor spent a good few million on that asset over the years and sold it to POW for what looks like about £750k cash once the POW equity selling is done.

Thor's managing director has confirmed "Thor is an exploration company focused on advancing our assets to create shareholder value, we are not looking to hold or accumulate equity in other companies." - That would suggest to me that all equities are in the process of getting sold (the last 12mil POW shares are available to sell from Jan 2023 onwards, the other 40mil Thor originally held are free to trade and are getting sold currently).

Big dilution from the recent raise and no holdings in other companies moving forward from an investment perspective - very risky business model for Thor moving forward now after the latest financial decisions by the board in my opinion.

Emailed Thor Mining last week to see if they could provide any commentary on the selling down of POW shares after I noticed that they had been selling POW shares in their quarterly report figures… I received the following:

“Thank you for your email.

As you are aware we received the Power Metal (POW) shares through the divestment of Pilot Mountain, so to us they are cash.

Thor is an exploration company focused on advancing our assets to create shareholder value, we are not looking to hold or accumulate equity in other companies.

Hence, we will continue to sell the POW shares as required to progress our exploration programs.”

So for those unsure about what Thor Mining are doing with their POW shares and other equity holdings ... Thor will shortly be selling the lot in my opinion based on that response.

Emailed Thor Mining last week to see if they could provide any commentary on the selling down of POW shares after I noticed that they had been selling POW shares in their quarterly report figures… I received the following:

“Thank you for your email.

As you are aware we received the Power Metal (POW) shares through the divestment of Pilot Mountain, so to us they are cash.

Thor is an exploration company focused on advancing our assets to create shareholder value, we are not looking to hold or accumulate equity in other companies.

Hence, we will continue to sell the POW shares as required to progress our exploration programs.”

Thor therefore confirming they are selling everything they own from an equity point of view and they will be selling POW down to 0 in the coming months (last 12mil share batch available to drop from Jan 23) … zero focus on their balance sheet and seems like a very high risk “raise on the market at poor terms and hope we hit with the one or two planned drill campaigns” approach over there. Like so many others on AIM I guess!

POW several fingers in many pies and by a country mile the better short term, medium term and long term investment from a financial and risk management point of view in my opinion (as well as many other view points too!)

Once Thor are finished selling (they should be done any day now before returning for a final 12mil share dump in Jan/Feb 2023) the POW share price should finally start moving to 2p+ and beyond. At which point several IPOs will be live and we will be on the verge of Molopo Farm assay results from multiple holes.

Under the Disclosure Rules and Transparency Rules, companies with shares listed on a prescribed market (such as AIM) must make an announcement of their total voting rights if there has been a change during a calendar month.

As POW completed the Molopo Farms deal to take their holding from 53% to circa 88% this month, additional shares were issued as part of the deal and therefore the total shares in issue changed andPOW were required to notify the market via RNS.

Great further Nickel grades released via RNS by FCM this morning at their West Pickle Lake Project.

https://www.**********.co.uk/rns/announcement/2f152912-e61e-4af6-910c-70cb0f1a44c0/

POW hold a nice position at FCM which is currently worth circa £3,000,000 at FCM's current mid-price.

From the Molopo RNS dated 18/11/2022 - "Downhole geophysics is now complete on drill hole DDH1-6B from Target area T1-6, with the geophysics interpretation results expected shortly."

This could well be the next update we hear from POW and in my opinion the news could drop any day now.

Very tough raise for existing shareholders and a huge headwind ahead now on any SP movement above 0.5p - Looks like 378mil shares @ 0.38p with 378mil warrants @ 0.50p ... the initial raise and fully converted warrants might raise a total of £3.25mil but the dilution would be huge. The share float was circa 2bil last week, it would be closer to 3bil with the warrants fully converted from this raise.

No wonder they have been panic selling POW shares over the past few months!

From looking at the price action in POW over the past few months, the main reason why the POW share price is not much closer to 2p is because Thor Mining have been selling down a significant chunk of their POW holding. From the quarterly report dated 30/09/2022 Thor's holding dropped from 52.1mil to circa 35mil. A new batch of POW shares became available to sell from 31/10/2022 onwards so I think we can assume some of those shares are being sold down too.

Thor paid £925k in an equity deal for Pilot Mountain and they have raised a few times over th e past 7-8 years to push the project on. Selling POW shares at circa 1.5p a share would bring in circa £750k and therefore crystalise a loss on the project. I guess Thor still hold 12.5mil 4p POW warrants moving forward, but it doesn't look great especially when members of the Thor board are talking quiet loudly about the importance of Tungsten assets.

Agree with a few posters on here that POW are pushing on quickly and it would be good for Thor to keep hold of at least some POW shares. I feel this may be the case moving forward on the sale of some of these POW shares was simply to keep the lights on before the raise was completed.

Assuming Thor can only raise at 0.3p, for every £1mil raised at these levels would equity to 333mil additional shares or circa 17% dilution. A tough one to take for current shareholders.

Hi Sol, that interview on the Midweek Takeaway is from 17th March 2022.

Thor are for certain selling POW shares - Read the latest Thor quarterly news release. They are down to 35.1mil POW shares as at the last quarterly report dated 30/09/2022. That means they have been selling POW shares sub 1.5p. More shares become available to sell as at 31/10/2022 and based on the POW sells a block seller is clearly in the mix which can only really be Thor Mining.

If Thor sell down their entire POW holding at these prices, then Thor have effectively sold PIlot Mountain to POW for about £800,000 ... I would not be happy with that one bit as an investor! Fuming in fact!

I'm a POW shareholder and more than happy with this deal from POW's point of view. Just waiting for Thor to finish up so POW can continue on it's recovery.

As for Thor, they clearly need the cash and are unable to raise at 0.4p levels favourably. Looks like a tough road ahead unfortunately.