Member Info for Tray556

The seller appears to be Thor Mining ... I have just read their quarterly report dated 30/09/2022 and they are down to 35.1mil at that point (they received 48.6mil from the sale of Pilot Mountain + 4mil shares for the early tail benefit settlement)

From their 30/09/2022 quarterly report:
"The Company reports net cash outflows from operating and investing activities for the quarter of $840,000, comprising inflows of AUD$350,000 from the sale of Power Metal Resources Plc (POW) Shares and $293,000 from the receipt of government grants and total outflows of AUD$1,483,000. AUD$1,313,000 of the outflows related directly to exploration activities.
Thor holds a further 35,118,920 POW Shares with a mark to market value of £474,000 (approximately $846,000) based on the closing price of £0.0135 for POW Shares, as traded on the London Stock Exchange on 27 October 2022. Approximately one third of these POW Shares are freely tradeable, with the other third being released from escrow on 31 October 2022 and the remaining third being released from escrow on 31 January 2023."

Would appear the next batch of shares available to trade from 31/10/2022 are now getting dumped. Based on current prices and the assumption that some have been sold closer to 1p than 2p, Thor will have about £800k cash to show for the sale of Pilot Mountain with no tail benefit and 12.5mil 4p warrants (they will cost Thor £500,000 to convert!). ... As a Thor Mining shareholder you have to be very upset with that outcome!

POW boxed off the Thor Mining deal for Pilot Mountain when prices were around 1.75p .... bottom line here is that POW took that Pilot Mountain asset for less than £1mil including the tail benefit being settled early. That asset has now been put into GMR and I reckon POW's circa 50% investment once GMR goes live will be worth approx £5mil in the next 6-12 months easily. PJ with yet another financially savvy deal and the market still doesn't wake up to POW!

POW's balance sheet is building by the month and POW can therefore raise on the market on favourable terms at all times. Thor Mining down to 0.4p and it is almost impossible for them to get away a decent raise .... PJ financially positioning POW so that POW's financial decisions are in our hands all times. Fantastic work so far by POW and the market should really be taking note of this in my opinion.

First telling off on the POW LSE board accepted! Good to see plenty of engagement on here in recent weeks/months from well informed investors in the junior exploration sector as well as clued up investors directly invested in POW.

My point was mainly around Tungsten being on the US critical minerals list and how key that is for GMR but apologies for the slightly incorrect timeframe in my original post!

Even if Tungsten was on the UNcritical metals list, POW are still massively undervalued at this moment in time and the risk/reward from these levels is extremely appealing.

The 1.63p trade was certainly a delayed sell today.

You can only sell once, and this block seller appears to have been around now since August when we moved from 0.9p to 1.7p ... clearly appears to be a buyer around now as well at these prices ... all eyes on the next RNS if you ask me! Anything from the Molopo downhole Geophysics from hole 1 or an announcement of a follow up drill campaign at Tati should send us moving to 2p and beyond. Of course, news could also come from POW's other directly owned projects which have all gone a little quiet at present whilst the focus is on Tati & Molopo.

So much of the ground PJ and the team have pegged over the last 24 months is looking very promising ... lots of other companies which are in and around the POW licences are now registering some seriously strong assay results ... time to get all these IPOs live ASAP, get the funds in the IPO bank accounts and hit the ground with those drill campaigns!

Will not take much to take POW to 3p / £50mil market cap company from here. To be fair, I think POW should be valued at £50mil right now, simply better market conditions would take POW to 3p in a heartbeat.

Regarding Pilot Mountain, between the time Thor Mining sold the project to POW and present day, Tungsten has entered the list of US critical metals. Take a look at those HIMARS rockets that are being used in the Ukraine/Russian war at the minute. Each rocket contains about 180,000 tungsten steel balls and those types are rockets are clearly making a difference on the battlefield (according to western media anyways!) ... Not only will the US need to replace these weapons they are effectively gifting to Ukraine at present. I'm sure most of the Western world will be sticking in a few orders of these precision guided missiles which all contain vast amounts of Tungsten. I cannot see China exporting Tungsten to the US and the West in huge quanities if it means that the US and the West can simply use the Tungsten to stockpile their precision guided missiles. Of course Tungsten is used for many other things too (including a good game of darts!), I'm just using precision guided missiles as an example as they are obviously of focus at the minute. Bodes well for Pilot Mountain which Oliver has stated is pretty much already there for potential production. The IPO funds raised shortly will try to expand the Pilot Mountain potential even further. Could easily be worth $100millions in the future with not much luck either in my opinion! A fantastic risk/reward play yet again in the POW portfolio.

Oliver Freisen the GMR CEO has just stated the following very bullish message on the GMR telegram page regarding Pilot Mountain this evening (POW will retain 50% of GMR upon listing):

“I strongly believe that the in ground resource as it stands now is robust enough to support a production scenario. This is based off the scoping study completed previously which highlighted annual production of 678mt pa of W03 for over a decade. This production alone would contribute significantly to the USA’s annual tungsten needs (e.g Canada is the 6th biggest tungsten importer to the USA currently which amounts to 752mt pa… or 8.6% of their needs - which should put into perspective how important this project is by itself).”

“But to be honest, what originally attracted me to this project was the exploration upside. There are already so many high-priority exploration targets I want to test, and that is even before we have received results from the property wide 3D IP survey. So the great thing about the mineral resource we have currently at PM is that it provides a great floor to the GMR valuation. But what is really exciting is we have opportunity to be the first company to ever look into several other untested high priority exploration leads - and these are the blue sky exploration targets that our investors will also get exposure to. So at GMR we will have a dual pronged approach at Pilot Mountain… 1) continue to derisk the very strategic and robust in ground resource, 2) go after several high priority exploration leads that were untouched by previous operators.”

Fantastic upbeat Stockbox interview with PJ & Mark Fairbairn, link below:

https://www.youtube.com/watch?v=btQ3mBgbW7E

Fantastic risk/reward play here based on what has been built over the past 24 months vs the current share price ... arguably the best risk/reward position since POW was incorporated back in 2019 in my opinion.

I mean that's a fair point if you are looking at it from a point of hindsight and taking the 2.25p seriously (even though price was 1.5p at the time). However, that is a risky way to run a business and I'm happy with the way POW have structured this.

I see it as the point the contract was sign it was 10mil at 1.5p (price at the time) = £150,000. That is the amount of cash POW have saved and would have arguably gone to the market for if the drilling co wanted an all cash payment (the 2.25p is irrelevant for all parties here, it is just a figure on the RNS that means absolutely nothing). Then it's the lap of the gods what happens next. So, it was always going to be 10mil share dilution whatever happens moving forward i.e. circa 0.6% POW dilution. Happy with the arrangements. The drilling company know how a stock market works ... there is going to be no animosity if the POW share price doesn't go through the roof.

The drilling company get the shares issued between the drilling completion and assays being released.

Where is the excess dilution if price moves? It is 10mil shares being issued regardless of where the SP is at the time the shares are issued.

The dilution is fixed to 10mil shares. If price is at 1p once drilling is completed, then shares are issued at an effective equity value of £100,000 to the drilling company. If price is at 5p then they are issued at an effective equity price of £500,000.

It has saved POW a bit of cash in the short term and that has helped them with financing this drill campaign, so they have not had to go to the market for more funds at the 1.4p area. Price could be at 1p once drilling has finished or 10p once drilling as finished. I would imagine shares will be issued once drilling has completed and not once the assays are returned, so I don't think the market will know the Molopo results when shares are issued (could be wrong regarding this point).

POW have a pretty good risk management approach with their diversified portfolio, and they are taking that approach to this drilling campaign with the financing of it.

A thoroughly good move in my opinion.

ART - For a micro-cap junior exploration company, it shows confidence in the project that the drilling company are willing to take some payment in equity. It also works for POW as they are in a cash burn sector, and this reduces POW's cash burn at this moment in time.

You seem to forget here that POW is not just Molopo Farms. It has stakes in multiple other public listed companies and also has a bunch of other directly owned projects once which has just found high grade near surface gold. POW's balance sheet is £15mil vs its £23mil valuation. Almost no potential is priced in here.

The drilling company are willing to take shares as payment due to the fact that it gives them exposure to multiple other companies as well within the POW wrapper. The drilling company seem therefore happy to take a few shares in POW as an investment ready for when the sector picks up. I'm sure they are also very confident in the geology around Molopo Farms too.

Your doom and gloom comments on here are based on nothing tangible. I understand that POW are being uncharacteristically quiet on the Molopo Farms project. But that can be taken neither as a positive or a negative in my opinion. The answers will be in the assay results in due course. If they are bad POW drops 10-20% initially until the market realises, they have plenty of other solid irons in the fire. If results are positive, then price could move exponentially. A very good risk reward play from here and the drilling company surely also see that to take a part-equity drilling payment.

Good post on Twitter last night by Steve Wayne:

"What’s crazy is how much £cash POW can tap into, not just FCM either. And that won’t be done foolishly, or early, these guys have a very big plan, it’s starting to unfold"

He is spot on ... just a shame the market cannot see it ... yet.

If the market gets moving and POW release some further good news from their directly owned assets (Tati, Molopo, Athabasca etc.) plus GMR, FDR and Teathers go live in the next few months ... this could be enough to push the SP to 2p. At this point the 2p warrants are in the game and further funds will flow into POW from warrant conversions. Based on POW's track record this money will go straight in the ground in the attempt to further prove assets and increase their balance sheet value.

The 2p warrants are key in the short term as they will keep the lights on for another 12 months, after this point, lock in periods from IPOs will start to relax and POW can sell down some of their investments to raise cash rather than going to the market for funds. Like Steve said on Twitter last night, it isn't a few pounds of investment POW will have access too, its currently looking around £13mil (in a poor market!) ... once the market picks up and KAV, FCM and the latest IPOs rise with the tide, that figure could be £30mil, £40mil, £50mil+.

A solid business has been built here which has taken time and will continue to take time to develop. PJ and the team have clearly put their heart and soul into this since 2019 and have big money in the game. No wonder he's shouting from the rooftops several media platforms.

Great post Willowman and fully agree this is such a cheap stock at the minute and an absolute bargain for those that want to get in before the crowds arrive.

I am hearing the classic negative AIM attitude from investors at the minute just because the SP isn't moving upwards, "POW release too many RNS", "POW have too many assets", "The CEO is ramping the stock on social media all the time", "Why are POW not releasing hourly updates on the drill campaigns".

All the above points are huge positives, POW simply have a lot of assets that they are actively looking to push on at the moment. That means lots of news, lots and chat and lots of updates from the company. Yet the market won't see this as a huge positive until the price has doubled and everyone is buying in at 2.5p+ and they missed a great opportunity at these levels.

The current price of £23mil for a company with many active directly owned assets as well as a circa £15mil balance sheet should be screaming buy to everyone. The junior exploration is a risky sector, but with a £15mil balance sheet to back up your £23mil valuation the risk/reward here is massive.

FCM are a completely separate entity to POW and always have been.

FCM purchased some of POW's assets and added them to their own assets and IPO'd their company earlier this year (plan was to go live at end of 2021) on the main London market.

POW sold their assets to FCM for a 28% stake in FCM. The assets sold to FCM initially cost POW circa £250k and at today's price POW's FCM stake is worth circa £2.8mil. Not a bad profit on investment so far if you ask me especially in poor market conditions.

POW sold the assets to FCM as they didn't want to compete in the same area and POW already had a large portfolio. A good deal for both parties if you ask me.

ART I'm not too sure what you are expecting here. They are still on hole one from a multi drill hole campaign. They are not even a quarter of the way through the 2,600m estimated drill programme and most likely hardly anything has been sent to any assay labs so not a single piece of core will have been assay tested to date most likely.

Yes, the chances are that POW will not find anything of commercial value but that is the nature of this sector and why the returns are huge if anything is found and why most invest in this space.

So far, planned drilling has been extended and we have received no news to suggest drilling has been a success or unsuccessful. Even POW will not know at this stage as almost nothing has hit a lab yet. You may get some visuals but even visuals hold no weight until assays are released.

At least let POW finishing drilling and get a few assay results back before the negativity begins ... the drill still has to go another circa 2km underground yet. Who knows what may be found in an area that is clearly prospective for Nickel.

The market has price in almost every single one of POW's directly owned projects to be an absolute flop anyways at these prices. If anyone thinks that one of these projects may have a sniff of a success, then now is the time to buy!

POW doing great things here ... you just have to see into the medium & long term. It is a risk-off environment at the minute but the presence of Rishi as PM will most likely calm down the markets (even though I'm not a huge fan!). Once the November budget has been released, I would expect cheaper mortgage deals entering the markets looking at current bond rates, gas prices look to be on the slide too and that will give people a bit of confidence again to throw money at the more risky stocks.

POW once of the less risky junior exploration plays because of their £15mil balance sheet vs £21mil valuation at present.

Hi Rotherby, I constantly keep a track on this. It is why I also feel comfortable with my POW investment and find the recent grumbles on here rather strange!

KAV Shares = £1.29mil
KAT Shares = £0.02mil
FCM Shares = £2.94mil
LISTED INVESTMENTS = £4.25mil

GMR pre-IPO valuation = £3.33mil
FDR pre-IPO valuation = £2.56mil
NBGC pre-IPO valuation = £2.5mil (estimated)
Teathers pre-IPO valuation = £0.35mil
PRE-IPO VALUATONS = £8.74mil

CASH IN THE BANK = £1.5mil estimated)

DEBTS = £0mil

APPROXIMATE VALUE OF BALANCE SHEET = £14.49mil

CURRENT MARKET CAP = £22mil (approx)

DIFFERENCE BETWEEN BALANCE SHEET AND MARKET CAP = £7.51mil

The £7.51mil difference is basically the value of the 8 directly held POW projects which are as follows (assuming Alamo has now been dropped per the quarterly report comments):

Molopo Farms (87.71%)
Haneti (35%)
Silver Peak (30%)
Tati (100%)
Wilan (100%)
Authier North (up to 100% earn-in)
Athabasca (100%) - 11 Uranium Properties
Togo (100%)

£7.51mil / 8 projects is £938,000 per project. OK some of those projects are at various stages and will need significant funding to progress but some of that future funding could easily come from selling down our listed investments (once selling restrictions expire in some cases). POW are extremely active, and it is very promising to see. A £7.51mil valuation for all the above is rather silly compared to our peers. Plus, it only takes KAV, FCM or one of the IPOs to have a significant piece of news and their valuation increases which reduces the £7.51mil potential valuation in POW even further at these prices.

I said it at 0.85p where I bought a good few million shares into my SIPP and I'll say it again now, this is a no brainer for me and at these prices it is far from a high-risk play as far as the junior exploration sector is concerned.

- A further solid Molopo Geophysics news update today

- Price now below the latest placing where one individual took £280k @ 1.40p

- Uranium spot prices ($53/lb) creeping up and increasing the value of our Uranium assets

- Tati assays to most likely land in the next 4-6 weeks

- 2 x IPO’s to go live shortly (FDR & GMR)

- POW's other investments (KAV & FCM) seem pretty well financed for 2022 & 2023 so plenty of promising "indirect" drilling expected.

- Balance sheet currently valued at circa £14.5mil vs POW’s £22mil market cap valuation

- Molopo (88%), Tati (100%), Athabasca (100%), Authier (100%), Silver Peaks (30%), Haneti (35%), Wilan (100%) & Togo (100%) assets therefore valued at just £7.5mil.

Poor knowledge of POW yet again Roger - why don't you read the RNS feed before posting on here. I get the feeling you like posting your lack of knowledge on this POW board.

From May 2022, the 53% to 87.71% deal is still in progress subject to compliance approval from the Botswana authorities. In other words, it's a done deal subject to paperwork being signed.

Remember there are about 10 parties involved in signing over their holdings to POW ... it takes time, just like it's going to take several months for this Molopo drill campaign to complete and assays to be released.

My guess would be that the investor meeting is being called for the following reasons (in order of likeliness in my opinion):

- A Molopo update possibly from the geologists on site about what has happened so far.
- To discuss the quarterly report (due any time)
- To discuss the plans for 2022/23 (company year ended on 30/09/2022)
- To discuss something out of the blue that could be released via RNS.
- A general update and Q&A session

A general investor call is unlikely as there was a general Q&A with Paul & Oliver on 30/09/2022 on Telegram so another general investor meeting when things have been quiet on the RNS front between 30/09/2022 and today would be a little pointless.

The fact that the investor meeting was announced with no fixed date would suggest to me that the investor meeting will be to discuss something specific, but I am only guessing. Details should be released at any moment considering it is already Tuesday and the call is pencilled in for this week.

POW not sold a penny … as per the RNS.

POW’s holding of circa 18.5mil shares in FCM remains unchanged.

Just my thoughts on this investor meeting next week which POW have announced on Twitter over the past few days.

I’ve been a POW holder now for over 2 years and this (I could be wrong!) is the first investor meeting which I can think of where no fixed date has been given. All other investor meetings announced by POW themselves have been for a fixed date in the future. As at today, still no announcements have been made regarding this investor meeting.

This would appear in my opinion that POW need to be flexible around the date of this investor meeting because something is possibly happening in the background that they wish to discuss with investors. Of course, everyone is excited about the Molopo developments, but I would not be surprised to see a potential development elsewhere in the portfolio (Tati, Athabasca Canada etc.)

It also seems rather strange that POW would announce another investor meeting so soon after the latest Telegram Q&A (which was held 2 weeks ago on 30/09/2022). I know not all current or potential POW investors are on Telegram but a good bunch of them are. The replays of the Q&A on various social media would have most likely hit most of POW's potential audience so for another investor meeting to be held in such a short space of time does ring a few alarm bells.

On the other hand, it could just simply be a discussion to go through the quarterly results which are due to land any time now. It is also worth noting that the quarterly results issued this time around are effectively an early snapshot of the company’s annual accounts as POW’s financial year ends on 30/09/2022.

Just a slight hunch but I do feel like there could be a material development just around the corner next week from somewhere in this vast and ever-growing portfolio!

Strange to see grumbling on this board over LACK of comms with this Molopo drill programme. Usually, this board is moaning because POW release "too many" RNS. PJ & the team just simply cannot win.

I really cannot see what there is to complain about here. A diamond drill programme is a slow process and POW are one of the best in the game at putting their shareholders first with communications. Once they have the info collated ready to release, they will do so. As you can see from the latest photos on social media, there is a decent sized team working on this and it just simply takes time.

For some bizarre reason investors also seem to think that this Molopo drill programme is boom or bust for POW, absolutely not the case whatsoever. If there is a commercially viable amount of Nickel in the ground, POW will find it. If there isn't then life goes on for POW with their strong balance, numerous other interests and future IPOs. POW's balance sheet is currently £14mil vs their £24mil market cap. Thats £10mil of potential priced into Molopo, Tati, Athabasca, Authier Lithium, Alamo Gold, Togo Uranium, Silver Peaks etc. Even if Molopo is an absolute flop POW would still be massively undervalued in my opinion.

The news flow will come on Molopo as well as their other projects. Anyone panicking now is doing so for no good reason. The markets are poor and yet again investors will search for any excuse as to why a share price is going up 20% every day.

As far as AIM goes, you are in one of the safer pair of hands with PJ & POW in my opinion.