Member Info for Tray556

Agree playtime that I hope this doesn't get frittered away on potshots either but I think Sean will be methodical with this cash. Can see the appeal of going to crypto capital pools which are clearly there than trying to get the UK to buy into anything when the capital is clearly not there.

POW currently have cash in the bank which pretty much covers their entire market cap. Leaving so much in for free at these levels.

POW's current cash balance will be providing almost enough interest to cover POW's HQ costs, listing fees, NOMAD expenses etc.

To comment on earlier points around selling GMET early .... anyone that thinks GMET would be £1 a share with POW still holding 40-50% of GMET is on a different planet in my opinion.

I think POW just need to have a bit of a rethinking on the marketing front which remains very weak. At the moment the marketing material seems very corporate and tailored towards HNWs but they aren't buying in. So POW at the moment appear both unappealing to retail and higher net worth investors. In reality the POW balance sheet puts POW as one of the most appealing investment cases in the sub £30mil MCap sector .... but they just clearly aren't getting the message out effectively to anyone.

I'm happy to see POW do a buyback sub 20p before any large buyer appears anyways which seems to be in motion following on from the capital reduction RNS from the other week.

I hope with Minestarters the marketing is not too corporate. The crypto world won't buy in if it's too corporate in my view. Yes Minestarters is going to be a proper business unlike a lot of very unserious crypto propositions, but the marketing needs to be tailored towards the slightly younger generation that are heavily involved in crypto. Hopefully more Minestarters updates to follow.

Nano was just saying POW could have £100mil in cash right now. Due to historical poor performance, the company has a large negative reserves position and needs to clear this issue before the cash balance from solid recent financial progress can be potentially distributed. The RNS today puts those wheels in motion.

In Laymans terms:

1) POW have historical losses brought forward from plenty of unsuccessful exploration programmes over they years.

2) Over the past couple of years POW have moved themselves into a great position financially from x12 returns on the GMET investment and spinning most of their interests out into JVs and IPOs so the cash burn within POW has massively reduced under Sean's tenure.

3) Now in a position with £16-18mil in cash in the bank but cannot distribute any of that to shareholders due to the retain losses issue which they are now looking to address. When your market cap pretty much = cash balance .... there is a clear argument that the business has some excess cash to distribute back to shareholders.

4) Expect some cash to be retained in the business, some cash used for new opportunities like Minestarters with likely some others to be announced in due course and then some excess capital to be returned to shareholders via a share buyback, dividends etc. post GM vote & court case.

Overall, an excellent RNS as it sets the platform for a buyback/dividend. Personally would prefer a buyback here as the business trades at a 40%+ discount to NAV with sellers still bizarrely around at these levels!

Great post NanoCap .... everything a POW shareholder (and the market in general) needs to know about today's RNS is in your excellently worded post!

"I am just slightly disappointed in their lack of foresight over here"

What a bizarre comment. POW's foresight turned a £2mil initial GMET investment into £23mil in just over 2 years.

The POW market cap is now covered by cash and FDR stock alone. Everything else is in for free!

Sol001 - You have been saying for months now that the SP won't move until X, Y & Z happens. Yet the share price is up 31% in the last month alone.

You keep banging on about POW having things "under their own RNS" .... which makes absolutely zero sense as surely everyone knows this is a balance sheet model and as long as there is balance sheet growth, who cares if POW are buying and selling caravans. In an ideal world, nothing should be "under POW's RNS" and everything should be held indirectly with someone else paying for it whilst POW hold a big stake in that venture!

You admitted yourself yesterday you don't even know what a token is, so surely you have no idea if POW's DeFi business venture is going to move the needle regarding the SP.

Covmutley - I'd say you were pretty much spot on with your post!

This new funding method in theory should attract new capital all whilst protecting the POW shareholder from epic dilution like 99% of AIM listed junior exploration companies. POW holders will still get up to 49% of the upside Minestarters generates.

Great post BigBiteNow!

Yes Early Bird that's the proposition here.

Even if POW's number are massively out .... it's still only a £1mil initial outlay (up to £3mil in total) to pursue this blue sky opportunity.

If it fails, the cash outlay is a drop in the ocean for POW holders. If POW pull it off, their SP goes through the roof. High reward / Low risk.

For a £1-3mil cash risk on the back of a £20mil investment profit in GMET .... it's an absolute no brainer in any logical world. Unfortunately the POW float is in such a mess these days you get POW holders selling this sort of news.

This is how it will all work in theory based on the POW presentation link on today's RNS:

1) POW acquire up to 49% of Minestarters, through a proposed investment of up to £3 million in cash (initial £1mil cash outlay for 35%)

2) Investors buy Minestarters tokens. By acquiring Minestarters tokens, investors obtain access to an institutionally curated portfolio of global exploration and development projects.

3) Funds enter a secure treasury and the treasury bankrolls multiple mining projects.

4) Projects return funds through royalties, equity, streams, debt instruments, other income sources

5) The treasury uses returns to build business model, buy and burn tokens

6) Minestarters benefits from token appreciation and revenue of which POW will own up to 49% of.

Minestarters is targeting a 15% share of the $100B+ global mining finance industry by Year 5. It's a solid risk/reward play using a fraction of the GMET profits POW just crystalised.

I cannot believe in a logical world that they are against POW paying £1mil for this opportunity when the best part of £20mil is sat in POW's bank account from the GMET sale. It's high reward/low risk stuff. Surely what every single investor wants to see management pursue?

Goliath - I'm assuming that the remaining £17-18mil will be earmarked for all sorts of new ventures and to progress current POW assets.

What would you like to personally see? And what would you describe as a good use for the cash?

You are talking as though the £1mil outlay today for this new venture is about to bankrupt POW and have an adverse effect on the whole business. In reality its 5% of the POW current bank balance on a blue sky opportunity. I would also say that about 95% of POW holders (myself included!) don't even know how this new venture is going to operate.

From a purely financial point of view and a risk/reward stance .... surely throwing a fraction of your cash balance at a blue sky opportunity isn't a bad move? Even if this comes to nothing, it doesn't effect a POW shareholder in the slightest. If it comes off, POW shareholders will get a solid reward. That's the type of business deal I like to see.

Ultimately as a POW holder you need to really be here for the process, not the individual assets. If POW start discovering Uranium or buying ice cream vans and selling ice creams I couldn't care less. As long as the majority of the time they are turning dimes into dollars .... its all a POW investor should be interested in.

Up to £3mil is a huge gamble if you have to go cap in hand to the market for the capital at discounted prices with warrants attached. This would normally be the case for 99% of AIM listed companies.

It's hardly a gamble when you are using profits solely from your £20mil+ GMET investment to fund the next stage of your business progression.

It's only costing POW an initial £1mil cash (about 6% of their current cash balance). My guess would be they will only commit to the additional £2mil cash once the initial £1mil has been proved to be a good investment.

Latest interview regarding today's RNS is out now:

https://www.youtube.com/watch?v=jvs37PyY-Zk

All POW is doing here is using a fraction of it's £20m profits from the sale of GMET stock to pursue KNOWN capital pools. We know capital in the UK is hard to come by & extremely expensive.

Worth the £1m outlay to pursue blue sky potential and importantly doesn't dilute a POW shareholder.

It's all priced in for free due to the POW cash balance & FDR investment exposure. Absolutely madness selling here and sums up yet again how poor the state of the POW float is.

Yes Early Bird, someone has almost certainly been hanging around in the background and hoovering up shares for a good few days now .... could have been buying up the slack for several weeks now.

At this rate, POW may see a new TR1 holder on it's books soon. Something that is much needed as the POW float has been in such a dire state for 2-3 years!

Looks like the transaction is now correctly showing on GMET's trade screen and was dated Wednesday 27th @ 2.24pm.

The fact that the trade is now showing suggests to me that the deal is very close to completion and POW will soon be receiving their £13.5mil. If the cash is not received today, then highly likely next week in my opinion.

POW could well be starting September with £18mil+ in the bank to deploy.

Great post NanoCap!

All POW holders need is an ounce of logic and liquidity to return to AIM and you simply double your money from here as a minimum just to get to fair value!

The next 24 months sees POW move forward with an £18mil cash balance, Uranium JVs with billionaires etc.

The most exciting time to be a POW holder since I’ve been here. Market has been frustrating but the POW team have pulled off some cracking moves of late. None of which are currently priced in!

Circa 2.5% of the POW float flipped today .... I'm pretty certain that's a record for a "no RNS" day. A few large sellers appear to have been taken out today too with the stock finishing +7.6%.

I wonder what happens to volumes when POW release some solid tangible news from either their £18mil cash balance, Uranium results etc.

POW have desperately needed to flush out their stale float for 24 months+ .... seems like sector liquidity is on the up and a few more days of flipping 2.5%+ of the POW float here should see a nice move into the 20ps for starters.

NAV is 30p+ right now .... so still almost a 100% move away from these levels to achieve just a fair SP.

It took 9 calendar days until we received the cash from the announcement of the first tranche of GMET stock sold back in Feb to UCAM.

So far, its been 8 calendar days since we announced the disposal of the final tranche of GMET stock on 19th Aug. £13.5mil to land tomorrow?

The "something good" happened months ago Scottydog when POW signed the JV with UCAM, sold GMET for a £20.9mil profit, listed FDR worth £4.4mil today ....

When the market ignores a solid company, you get an obvious investing opportunity. The market's attitude towards POW for the past 12-24 months has been about as illogical and inefficient as it gets.

Even at 18.25p it trades at a 35-40% discount to NAV!

The share buyback should be actioned if a company has excess working capital, there is minimal liquidity and the stock trades at a huge discount.

POW may have excess working capital, but if this starts moving up into the 20ps due to logic and liquidity returning to the POW and the sector in general, then the buyback is a waste of cash and the cash should be fully utilised on growing the balance sheet further.

Personally don't want to see a buyback above 20p. If this moves into the 20p zone it clearly shows that the POW float has moved into better hands and logic & liqudity is returning and those holding POW stock now have a grasp of how a balance sheet model operates.

Positive news which positively impacts the POW balance sheet will then move the SP upwards once all those have sold out who thought selling at a discount to cash was a logical move. POW just need a stronger float where a large % of their holders understand a balance sheet.