Member Info for Tray556

POW drilling 2 directly held projects (Tati & Molopo)
KAV drilling - POW hold circa 14% of KAV + lots of warrants
FCM drilling - POW hold circa 28% of FCM + warrants
GMR and FDR fully funded and soon to be drilling - POW will hold 40-50% of these IPO vehicles once live
NBGC drilling (but the IPO on hold) - POW currently hold circa 49.9%

If you want to invest in a junior exploration company that has active drilling across its portfolio … look no further than POW!

The weekly POW email has just landed in my inbox which is always a good read for anyone who has not yet signed up to the mailing list. I found this last section of this week's email very interesting:

"But the key point, I feel, is this…

While the drilling we are completing at the Molopo Farms Complex is exciting–potentially game-changing, in fact–it’s just one piece of the jigsaw that makes Power Metal so unique.

When you add in our uranium opportunity along with our gold exploration efforts at Tati (and, of course our large positions in a wide range of highly prospective spin-offs and other exploration opportunities), you’re left with a vehicle that presents a plethora of potential sources of short, medium, and long-term shareholder value.

And that, reader, is why I’m so excited to see what the coming weeks, months, and years continue to bring. "

Trading 212 have a limit of about 200k shares in POW I think so it's fine for small amounts ... they say its due to liquidity issues or something. If you want to have a holding of more than 200k shares then I would use a better broker ... 212 only give you the exact bid/ask price so you get ripped off anyways. It's for a larger holding its cheaper to use a proper broker and pay a small fee each time. Plus on 212 you usually have to wait an age for orders to go through. With a proper broker you get an instant quote to buy/sell 99% of the time.

Golden Cross hitting the charts tomorrow (50 day moving average crossing the 200 day moving average) - A very strong buy signal and there are not many AIM junior resources companies out there that have a Golden Cross setup on their chart at the moment. Most are trading well below their 200 day moving average.

Not a chartist personally, I'm here because the company is in a fundamentally strong position with a solid balance sheet and a vast portfolio of assets all ran by a CEO with £500k+ of his own money in the game.

I'm sure the strong technical indicators on the charts will only bring in further buys over the coming days/weeks on the lead up to Tati & Molopo drilling results.

My view here is that PJ does not want to hit another successful hole or see some very interesting cores without having the cash to further extend the drill programme if needs be.

Let just say a few third parties are interested and the assays come back strong. PJ wants to be able to turn round to these third parties and say "well we have the cash to stick another 5-10 holes in the ground and further enhance the value of the licenced ground if needs be" ... it puts POW in a position of strength financially and give POW a bit of a bargaining chip over any third parties.

If a third party is really confident in Molopo, the last thing they will want is for POW to stick more holes in the ground as more success equals a bigger price for the third party to get involved.

If the third party knows POW is low on cash ... they are going to lowball POW into accepting some sort of deal. Even more so if the market really gets bad. With the latest raise it just adds a bit more of leverage for POW if/when they get round the negotiating table regarding the next Molopo steps with a third party.

POW now probably £1.5mil in the bank and £12mil of listed investments once GMR, FDR, NBGC go live on top of their KAV, KAT & FCM holdings. It's a strong position financially compared to most junior exploration companies valued at £25mil or less.

Interesting times ahead for sure.

"he’s wringing us out for another few months before rinse and repeat"

You are aware that PJ is the biggest shareholder here? If that was his modus operandi, then he's rinsing himself more than any other POW shareholder .... seems extremely unlikely for a CEO to do that Roger!

More buys than sells today Roger - please get your facts right (you seem to almost want to get your facts wrong on purpose). Surely by now you know that the transactions on LSE are just put in the buy or sell column depending on where this mid-price is at the time of the transaction. Below the mid-price = sell, above the mid-price = buy.

Two sells today both showing at circa 1.25mil trades (£20,000) were matched book transactions as someone was tax planning and moving shares into an ISA. I actually spoke to the person who did this today.

Why do you post these things on a public chat without being 100% sure? Your posts become less credible every time you post and you are starting to look very silly on this board. It is almost as if you go out of your way to look clueless.

Really good balanced post Worzel!

Have a good weekend too!

Replay from yesterday's Q&A with Paul Johnson the POW CEO now available on the Stockbox's Twitter account.

Very impressive Q&A session and arguable the most impressive one yet. A 90 minute+ open and honest discussion from the CEO. Both pre-written and live questions answered. For any new POW shareholders or interested investors, this is something that Stockbox look to arrange once a quarter and it's a breath of fresh air compared to most junior exploration companies on AIM who currently have CEO's hiding in closets because their share prices have taken a battering.

Not a coincidence for me that POW's share price has doubled in the last two weeks whilst most share prices in the sector are still on the floor. The company is extremely active, has a strong varied portfolio and the CEO is very approachable.

Live Q&A with PJ at 2pm today!

Well worth joining the group if anyone hasn't already. The Q&As usually last a good 90 mins too and they happen roughly once a quarter. 551 members on the Telegram group as we speak. 32 new members joined just yesterday!

Momentum building in POW for a million and one positive reasons!

1mil buy (£16,500) at 1.65p posted after hours ... after yet another poor day across the junior exploration sector, POW finished +5% with a 1mil buy over the 1.6p closing ask price. This is after already moving +80% last week.

Very strong momentum building on the company and it is nothing less than deserved. The board and team at POW have worked their socks off over the past 18-24 months whilst the market basically wrote POW off. Everyone was selling whilst I was personally buying a tonne of shares as the fundamentals are as clear as day.

10p a share in the short to medium term is not out of the question with two drill campaigns being announced within a matter of days! Always need a bit of luck with the drill bit in this sector but the returns can be life changing.

5p a share and its surely an MBE as a minimum?

Results to come (Short term):
- Ditau project assays (circa 15% KAV investment)
- Mt Bute assays (NBGC IPO)
- Upcoming Tati RC drill programme – 100% POW owned
- Upcoming Molopo Farms diamond drill programme – Circa 88% POW owned

Results to come (Medium term):
- Further Canadian Uranium exploration work which may include a significant drill programme.
- FCM IPO – Fully funded drill campaigns (circa 28% investment)
- GMR IPO – Fully funded drill campaigns with flagship asset Pilot Mountain (pre-IPO, POW’s investment worth circa £3.33mil)
- FDR IPO – Fully funded drill campaigns targeting gold, uranium & rare earths (pre-IPO, POW’s investment worth circa £2.56mil)

A very active company with almost every penny in the company being committed to the ground. Can't think of a better junior exploration company to be in at the minute with a sub £25mil market cap.

No significant warrants/options at these price levels (next material batch around 3.25/3.5p). CEO with 5% in the game plus outstanding warrants/options that could take his stake to circa 7.5%.

Tati RNS this afternoon - Key points summarised:

1) Drilling team and equipment have mobilised to site and RC drilling has commenced targeting near surface high-grade gold mineralisation.

2) 500 metres of RC drilling are planned within nine holes which are designed to test for the along strike and down-dip extension of the Cherished Hope mine mineralised quartz reef structures.

3) Due to efficiency of RC drilling and the Project's proximity to Francistown, the drill programme is expected to take approximately 1 week to complete and will be undertaken while preparations for the upcoming Molopo Farms Complex drilling campaign are ongoing.

4) Sampling for gold content in fines dumps at the Project (holding waste material from the Cherished Hope gold mine) is complete, with laboratory assay results awaited.

5) PJ comments "In parallel we await the laboratory assay results from sampling of the fines dumps from the Cherished Hope mine, which we expect will contain residual gold that potentially may be capable of processing at an existing plant nearby, subject to any appropriate local approvals."

At the minute because of the recent drop in share price over the past 18 months, I feel investors have just completely disengaged with the vast amount of POW projects, especially the IPOs:

- FCM – Licences within a few kilometres from the Barrick gold’s huge Hemlo mine
- GMR – Pilot Mountain with the already proven Tungsten grades
- NBGC – Plenty of licences which have known gold grades from historic drilling including old working mines. Further Mt Bute assays due shortly from 2 holes.

As I said a few weeks ago, at 0.85p, zero potential was priced into POW. Now a little bit of the Molopo potential has been priced in over the past week but still no potential from the IPO held licences are getting priced in here.

Still an absolute bargain at these prices in my opinion with the company valued at circa £23mil.

First Equity - 08/02/2022 - BUY RATING - Target Price 4.3p

I'm sure in order to exercise those 3.25p options a 10 day volume weighted average price must be over 5p a share too. That is also the case with a lot of the 3.25p POW team/management options too.

Staff/board incentives aligned with shareholders - very good to see.

A brief summary below of the upcoming POW value events for the next 6 months in case anyone is interested (FYI POW are far more active than your average AIM listed junior exploration company!) :

Molopo Farms – Completion of the deal to acquire circa 88% project interest and a 2,600m 6-hole diamond drill campaign to commence. I would imagine drilling Q4 2022, results Q1 2023 but POW have mentioned a willing to fast-track the drilling where possible.

Silver Peaks – Next steps to be announced. Oliver Friesen was at the property last week. According to the POW website “The Company is currently working with its partners to undertake a potential listing of the Silver Peak project on a recognised stock exchange and to review other commercialisation options for the project.”

Tati Project – 100% owned by POW and 5g/t gold found at surface in the first RC drill campaign. Second RC drill campaign now announced on a second licence that was recently acquired at the property.

Athabasca Uranium – 1 of the 10 licences disposed to Teathers PLC for £350,000. The licence only cost POW a few thousand pounds last year. Further exploration & corporate work to be announced regarding the other 9 Athabasca licences.

Ditau – Originally started drilling whilst in a 50:50 JV with KAV. KAV have now given POW 60mil shares + 75mil warrants to acquire 100% of Ditau & KCB assets. POW now hold circa 15% of KAV (over 30% if all warrants converted). Ditau drill results to land shortly.

Golden Metal Resources PLC – IPO to go live in Q3 2022. A fully funded drill campaign at the flagship pilot mountain asset will be interesting. Pilot Mountain currently holds a JORC resource of 12.53Mt at 0.27% Tungsten with significant copper-silver-zinc credits.

First Development Resources PLC – IPO to go live in Q4 2022. The package includes some interesting Uranium and Gold targets. Some gold targets similar in structure to GGP’s Haverion.

First Class Metals PLC – IPO went live a few weeks ago. Fully funded for 18 months and drill campaigns to be announced shortly.

New Ballarat Gold Corporation PLC – IPO has been delayed now for over a year and pre-IPO drill results have been average to date. Some huge land packages over 2,000 km2 in rich Australian gold areas. Recently acquired a property which has an old working gold mine. Updates to come, IPO most likely in 2023.

Haneti Project – JV with KAT. KAT hold 65%, POW hold 35%. KAT are an awful JV partner who have a very poor work ethic and no cash in the bank. Next steps to be announced at some point, however, initial drill results were very average.

Board Members & Chairman – POW have been without a chairman for almost 12 months so something should be announced on that topic shortly. POW also looking to increase the number of board members from 3 to 5-6.

Paul Johnson - Delayed warrants & options for PJ to convert this year. Would bring in circa £400k for POW & take PJ's holding from 5% to 7.5%, a very si

Oliver comes across really knowledgeable. He's only 32 year old but he's got a solid CV and PJ has brought some real quality into the business over the past few years in terms of people and projects.

Oliver has a cracking opportunity to deploy the GMR IPO raised funds into drilling Pilot Mountain which already holds a JORC resources. If he can enhance that asset it could be worth 10s or even 100s of millions of pounds of GMR. POW currently has an 83.13% interest in Golden Metal ... I'd expect POW will hold around 30-40% once the IPO goes live hopefully before the end of September 2022.

Its a 30-40% stake in GMR for POW which if that Pilot Mountain asset gets enhanced, could be worth a pretty sum for POW's balance sheet. Eventually POW would sell down their GMR investment, take the cash back to the POW bank account and at that point POW are cash rich. Plenty of working capital to deploy on their own assets with the need to raise funds from the market and plenty of funds to distribute to shareholders as dividends.

Of course the above is the long term plan but this is ultimately PJ's business model and why the focus on the balance sheet and crystallising value is so important if POW still want to be around in 5-10 years time.

"In resource exploration you can line up those who dispute your optimism, strategy & technicals. Though gutsy companies & investors run through all that and still go for the big discoveries. Let’s get the drill going"