Member Info for Tray556

You have touched on several reasons why I am invested in POW StanAccy!

I think this will be worth a lot more than its current £19mil market cap in the next 12-24 months!

POW's KAV investment as at today using KAV's current share price of around 5p per share:

Current value of KAV shares (4,750,000 @ 5p) = £237,500
Total Value of O/S KAV Warrants (9,500,000 @ 5p) = £475,000

Cost to exercise 4,750,000 1p warrants (expiring 2022) = (£47,500)
Cost to exercise 4,750,000 2.5p warrants (expiring 2022) = (£118,750)

Fully exercised it would cost POW another £166,250 to covert all outstanding warrants and hold 14,250,000 KAV shares worth £712,500 at today's prices.

POW/KAV are also in the process of a JV deal regarding the Molopo Farms Complex. Worth looking at the latest RNS regarding that potential deal which was dated 26th November 2021 (deal is due to be signed this month - deal expires on 25th Feb 2022). The deal is a little complex but KAV will give POW further shares and warrants if the deal goes ahead. Paul Johnson stated on a live Q&A last week that he saw no reason as to why it wouldn't go ahead, but would not comment any further and could not speak for KAV.

I would say between now and mid-2023 we will probably have somewhere in the region of 10-15 drilling assay results RNS across the portfolio. Could be from 100% POW owned assets, the planned IPOs (GMR, FDR, FCM, & NBGC) or another IPO or investment deal we tie up in the short term.

Name another junior currently valued at £20mil on the UK market who will be releasing 10-15 assay results in the next 12-18 months - I think the answer is ZERO.

Having a direct 100% holding in an asset is not always a positive. OK you make the biggest returns if your asset is successful but you also have to chuck out 100% of the costs and you have no partners / additional expertise to guide you along the way. POW simply hold a 40-50% stake in the IPOs and sit back and watch the drilling happen with absolutely no cost to them. They will be the biggest shareholder so the can exercise some sort of control over the way the IPOs run things.

If the several drill programmes don't come up with the goods then that is unfortunately the nature of this sector. PJ has almost £600,000 of his own cash in this so he'll be throwing the kitchen sink and more at it. Surely this is where you want your money to be sat if you like to invest in early stage junior exploration?

Remember the IPO spin outs start off with millions in the bank for drilling from the public raise. The drilling is pretty much fully funded across the portfolio. For me its a case of investing at these ridiculously low levels and watching the investment value on the POW balance sheet grow.

Once the IPOs spin out, I would say with just a stronger sentiment in the sector alone, the value of our investment in the IPOs could easily exceed our current market cap of £19mil!

Looks like the £10k went through the AQSE instead of the LSE so will not show on here.

With regards to Regent Resources Interests Corp, I think this is the holding company for the Ivory Coast interests that we inherited from African Battery Metals in 2019. As those project interests have also been disposed of, I think its the same story as with Cobalt Blue, Regent Resources Interests Corp is just a holding company that holds nothing at present.

Again, I'm only having an educated guess - PJ is the one to speak to via email or phone call for a definitive answer.

I could be wrong but I think Cobalt Blue was the holding company for the Cameroon interests that POW inherited when they purchased African Battery Metals in 2019. As POW no longer hold those assets, I guess Cobalt Blue is just a holding company that effectively holds nothing at present!

PJ will definitely be able to give you a much better answer if you email him like Tiggrrr said!

New organisational chart posted today on the POW website showing the huge global scale of this business:

https://www.powermetalresources.com/organisational-chart/

Well worth a look - Its early days but several drills are starting to turn and the results will be coming in thick and fast throughout the course of 2022 and beyond.

Key notes I made from last night's fantastic Q&A session (and well worth a watch!):

- PJ hinted he knows who the current seller is and isn't phased at all.
- Tati assays sent to Intertek in Australia for solely quality purposes. POW want to work with the best labs in the world hence the delay in getting the results due to a backlog in the Intertek lab.
- 40-50% planned POW stake in the IPOs is the aim post-spinout
- New chairman isn't far away and talks well under way
- Increase in board size to 5-6 is likely (currently 3 board members)
- PJ hinted at a possible IPO spin out of our Canadian Uranium assets in due course.
- Oliver (GMR CEO) and Tristan (FDR CEO) came across very well and are also happy to answer any shareholder questions live
- Lots of drilling planned for 2022 and drilling to start in the GMR & FDR IPO's after the IPOs have launched (there will be no drilling pre-IPO like New Ballarat Gold Corp)

In my opinion, really worth a watch if you are a current or potential POW investor. Also a very good lesson to other AIM junior exploration companies in how a company should be communicating with it's shareholders. Most CEOs / board members are hiding in a bunker after a big share price pullback across the sector. Not PJ and the team, they are still actively going out of their way on a Tuesday evening at 7:30pm to talk live with their investors for almost an hour and a half - Superb effort.

No references to the Wizard of Oz today Rigrat like you did a few weeks back? - I'm disappointed

As I have said before - everyone on here is more than open to constructive criticism of a stock. I personally enjoy hearing both sides of the investing argument.

One thing I have researched is the quality of your comments and they never contain anything of value Rigrat.

TipsyPeach,

1p per share is around a £14.5mil Market Cap. I know the CEO confirmed that as at 30/11/2021 our net assets were worth £10.1mil, therefore, on paper (which is also audited) we could in theory get £10mil in cash in a briefcase within a short period of time. Obviously we won't do that (and the terms of the IPOs and our investments won't allow it either) but it shows POW are financially stronger than 99% of AIM juniors with a market cap at this level. Basically the market at the moment is pricing POW as a company with absolutely Zero potential when in fact 2022 will contain several drill campaigns focusing on some solid looking targets. Once the IPOs go live - a small tick up in share price in those IPOs and suddenly POW are worth £20mil on paper. All these IPOs once they go live will have millions in the bank for drilling campaigns. The Golden Metal Resources IPO also has a JORC asset that everyone seems to strangely not care about! Several drill targets for 2022 are also very close to know discoveries and major players in this sector.

The question I ask is if you want to invest in the Junior Exploration game then you want to be invested in a company that will be drilling because ultimately drilling success is what adds huge value and sends the share price soaring which is what every investor wants. POW are putting the work in of 10 AIM junior companies in my opinion and potential investors are too busy looking at the declining share price over the last 12 months (which is the same across the whole board) than understanding that POW are setup very nicely for the 2-3 years and there is going to be tangible news flow absolutely guaranteed.

Add into the mix the CEO is the biggest shareholder who buys frequently on the market and at current prices this company is a no-brainer to invest in at these levels if you like the junior exploration sector.

The subject of this chat is "Worth a punt" well you get several bits of the cherry with POW who have a unique model in place across multiple jurisdictions and commodities. Definitely worth investing for me if your risk appetite allows it.

Nice Stockbox interview from PJ again - I think many will be kicking themselves for not buying at these prices in 12 months time. Remember PJ chucked another £16.5k in a few weeks back at prices 15% higher!

PJ raises the key point again about the IPOs bolstering the balance sheet and allowing us easy access to capital through our investments rather than going to the market. This is the majority of the POW model moving forward. If a spin out vehicle does well and it’s potentially 10s of millions of pounds to POW. It’s the key which opens the potential dividends / share buyback door down the line.

How the market keeps ignoring us is very strange … we have a JORC asset with millions of drilling expenses paid for by the IPO raise to enhance it further. We also sorted out in advance our contractual agreement with Thor Mining in the last week for when that JORC asset is enhanced as we are so confident.

With 4 IPOs, more in the pipeline and plenty of POW directly owned assets, the tangible newsflow will be coming from all angles shortly.

I’ve posted a few times recently stating this is just a no brainer at this prices. Some AIM companies up today by 20-30% on a “new potential target” RNS. We have a hatful of solid targets, and a good few initial drill results in the bag from 2021 too.

14 projects & a market cap of £18mil after today's close. The market is valuing this company at £1.29mil per project. Add in £3mil in cash/listed investments, £1mil equity in the upcoming First Class Metal IPO & a CEO with 6% of the stock and this is massively undervalued.

As undervalued as I personally think it is, it is going to take the average AIM investor some tangible results in order for the buy button to be pressed. I'm more than happy to position myself in this stock before that scenario happens because I'm pretty confident those buy button will be getting pressed quite a lot in 2022.

One thing I definitely don't agree with is the comment from earlier today stating "perhaps POW should stay a little more quiet". POW will release news as and when it is there to be released. They are an exploration company and if they simply pick up a new licence or hit bonanza grades with the drill bit, then shareholders will know about it. It isn't their fault that they have more news than most because they are simply going for a bigger scale operation than most. The IR in POW is absolutely superb and not every RNS is released so that the share price doubles. Some RNS are released simply because any exploration work that effects the portfolio is price sensitive to shareholders in the company. Some AIM investors are on a different planet at times.

As per the latest Haneti RNS on 11 January 2022:

"Mobilisation by the drilling contractor has commenced with the drilling rig expected to be on site around 17 January 2022, and drilling expected to commence on or around 20 January 2022."

Tomorrow, the first of many 2022 drill campaigns should be starting .... the drills have already recently turned in the Tati project (assays pending any day) and also in the Victoria Goldfields (New Ballarat Gold IPO - drilling still underway). This is just a fraction of the POW portfolio and the market will simply not sleep on this stock for much longer.

........ since October 2020.

The IPOs give us a potential pool of capital to dip into down the line when we need money so we are not forced into poor financings due to desperation for money. We will most likely be the biggest shareholder in these IPOs so we will not want to sell too early if their are any successes to avoid a share price crash in the IPO. PJ has always stated that you will never wake up as a POW holder to a discounted raise and he has been true to his word so far.

Its a unique, clever and exciting opportunity in POW but the average AIM investor doesn't understanding building a good financial position for the future. All they are looking for is a bit of news to sell into as the average AIM investor is used to companies going to the market left right and centre for poor finance raises.

They will soon wake up to POW in the next 12-24 months in my opinion when they have £20 million+ of investments on their balance sheet. As I chartered accountant I can almost assure you that the market cap will not be at these currently levels if that is the case!

Hi Donold, I can certainly give you my opinion of where I see the POW business going. I have also pinned something along these lines to my Tray556 twitter page.

POW has done a superb job under the radar of the market during 2021 acquiring cheap licences/ground/projects etc. across multiple commodities and jurisdictions across the globe to add to their portfolio. Some of these will be spun out via an IPO, some will be disposed of for cash/equity in other companies and some will be kept in house as a 100% owned projected or JV partnered.

POW is starting to move away from your traditional AIM junior who just goes cap in hand to the market, raises a few million quid to pay corporate expenses i.e. salaries and then puts some of the cash into the ground in the hope they find a Haverion 2.0. When this inevitably doesn't happen its back to the market again for a 20% discounted raise and so on and so forth. In POW its all about self-sustainability by building their balance sheet.

The projects that they put into an IPO will retain a percentage of the project lets say 30% (could be more, could be less). Now a newly formed junior resource PLC will most likely be able to raise £5million assuming they have some solid licences and backing. That's £5mil x 30% = £1.5mil which POW instantly can put onto their balance sheet. Now there will be terms saying they cannot sell for the first 6-12 months etc. but the bottom line is at some point that is accessible cash for POW if they need it down the line. Now lets say with all the work PJ did in 2021 acquiring cheap projects we do 8 IPOs in the next 12-24 months, that's approx. £1.5mil x 8 IPOs = £12million of accessible cash if we need it. Take into account that some IPOs will be a success and some maybe a flop. A flop and the IPO may need more funds and POW's investment is diluted somewhat. In this space you need ONE discovery and it changes the game massively as PJ has already experienced. It would be impossible for POW to solely finance their whole portfolio so they are buying many tickets to the raffle.

Note: The IPOs also raise £5million (amount obviously could be more or less) and that's pre-paid drilling expenses, nothing comes out of POW's pocket once the IPO goes live. Take Golden Metal Resources - Pilot mountain is already a JORC compliant asset which PJ picked up for just £1.8mil. Throw a few million at that & it could be a company changer!

POW are now part junior explorer & part junior mining investor. Their mantra is "explore" and "crystallise". I don't think it will be long before PJ and the team can build up the current £20million market cap in accessible cash alone over the next 12-24 months though the IPOs ... therefore investing in POW is a lot less risky than most.

Add in PJ's 76 million shares and his constant buying on the market whilst he holds a hat full of warrants and options and I feel very confident in my POW position which I have built to a substantial level now since

I fully understand it is a high risk / high reward sector but I'm not sure if you understand that simply stating phrases, coloured roads and characters from The Wizard Of Oz adds absolutely no value to this board (or any investing board!). I'm sure I speak for most investor when I say I like hearing constructive comments from both a negative and positive point of view but your latest post shows your contributions on here are worthless at best.

I am a POW shareholder and I'm very optimistic but I'm not "trying to convince" anybody. I post on here every so often just voicing how I see things personally and I have absolutely no concerns as the company is positioned very will for future years and is in the best place strategically and financially since the 2019 takeover. Junior exploration is a slow process but POW have the blocks in place for potential success in the future hence why I am invested at this early stage. I'm saying "potential success" as that is all it is at the moment.

Tati drilling finished during the last week of October 2021. Assay results should be landing any day now.

This project is a 100% POW owned project but some solid drill results would open a lot of doors to develop this asset further if the licenced ground is in fact lucrative!

Could this be the tangible drill result that breaks the 12 month downtrend in the share price?!?!

Once the IPOs are live it becomes a little bit easier for the market to value POW. At the minute, pretty much POW’s entire valuation is based on potential plus its £3mil working capital (cash + investments). The market is putting a very low valuation on POW’s potential at this moment in time. But think about this:

When the IPOs go live then you dont have to be a mathematician to do a quick calculation (No of POW shares in IPO x IPO share price) and you have an instant valuation for POWs balance sheet. The IPOs also create the cash to pay several drill campaigns within each IPO vehicle so doesn’t put a drain on POWs resources in the slightest.

Let’s say Golden Metal allocate £1mil of the raised funds for drilling Pilot Mountain and there is some success - then the IPO share price and valuation increases and so does POW’s balance sheet as their investment value increases.

With a bit of luck these numerous drill campaigns from the raised IPO funds have success and the value of POW’s investment in each IPO grows significantly (obviously some will go down it’s just the nature of the beast)

With multiple drills spinning across several commodity targets and jurisdictions it won’t be long before the value of POW’s shares in each IPO vehicle total more than the current market cap of £20mil. Then you can add in POW’s KAV shares, first class metal shares, cash in the POW bank etc. and before you know it a £20mil market cap is madness and in theory POW could have that in liquid cash in a briefcase the next day if they wanted too.

That’s the importance of building the balance sheet as I mentioned the other day and PJ never stops talking about - it unlocks many different doors and many different types of investor (and even lender if we need finance) as it’s POW in the position of strength!

Most juniors are strapped for cash and need to go cap in hand to the market with a 20% discount on their SP (Even GGP we’re doing it the other month) - with the genius model PJ has built within 12-24 months we could have the ability to stick £50mil in a briefcase by simply pressing a sell button on our investments.

Its unique, early days and not easy to understand but put it this way - no company is valued at £20million if you can get a £50million briefcase of cash together within a matter of hours! That’s what PJ is building here … crystallised value on the balance sheet and liquid access to finance.

Have a good weekend all!

PJ has confirmed a few times in the past that POW pay a flat annual fee for their RNS release costs. If they release 1 a year or 1 a day its the same cost. Why not keep shareholders informed as much as possible? The market will eventually catch up regardless if the company is growing.

PJ buying at 1.65p on the market when he holds warrants at 0.7p is surely one of the biggest buy signals out there!