The short term slip in the Uranium price is totally irrelevant as POW won’t be producing Uranium for some time. Look at the long term position for Uranium as that is the reason the JV has been established. |
Thing is pow haven't generated any prospects IMHO ROFLMFAO |
Power Metal is slowly progressing in its interest in uranium.
The URANIUM PRICE HAS SLIPPED STANDING NEAR $70, reducing confidence in the sector. |
hxxps://youtu.be/WJzRyJt5UDM?feature=shared
This is an interesting watch that I saw a couple of days ago. Hearing Rick Rule saying how much he likes Prospect Generators in a discussion about Uranium. Rick owns 4%+ of POW and it is my impression from the conversations he has had about POW that his number one interest is the Uranium assets. Clearly up to now the big success has been GMET but when asked about GMET he didn’t say much on the basis that he didn’t know much about it. Given his long term interest in Uranium and Sprott Uranium it seems highly likely that the Uranium prospects in the top jurisdiction are what made him get his cheque book out. The company that has stumped up £10 million to drill the Uranium must have been convinced that the chances of success are high. Rick Rule likes 10 baggers so I have high hopes for the Uranium JV. |
I'd be careful with Charles and his analysis but on this one I firmly agree. Selling gmet stake was a key moment. |
 Charles Archer March Review Small Cap Mining
Extract from Charles Archers March Review:
“The Power Prophecy
At the start of the year, I was fairly confident that Guardian would have a strong Q1 and parent Power Metal a strong Q2.
I do feel sorry for POW - both in my portfolio, but also for fellow investors, and management - it’s done everything right and the market refuses to reward the company.
This is by no means a unique situation, but having divested roughly half of its GMET holding, Power will have (after paying off debts etc) around £7 million in CASH, exposure to potentially >£16 million in the uranium JV in Athabasca in an upsiode scenario, 20% of GMET worth circa £9 million, and then all sorts of projects all over the world - including carefully laid plans in Saudi Arabia.
What I find most gratifying about Power is that the company has effectively managed to ignore brokers for cash-raising purposes - and it’s extremely unlikely you will wake up to a discounted raise.
As I said at the start of the year, the most important thing in this market is cash - or good access to it, such as through a near-term deal. POW now has it in spades.
What this capital does is give the company breathing room - and the ability to continue developing its business in Saudi. And to negotiate deals from a position of strength.
I remain of the the view that Power will tag 30p in Q2, though a lot of this hinges on getting the uranium drilling up and running expediently. If this drags on, then the re-rate may come in Q3.
Unless Sean has something up his sleeve that shocks the stock awake.”
I agree with Charles Archer’s analysis and a 30p target in the next quarter is fully justified. POW has gone backwards while GMET has done 100% in the last 12 months and until recently POW held 45% of GMET which is only partly reflected by the £9.5 million cash. |
The RNS was at 12pm. |
RNS after COB now secures funds for POW to progress other partnerships apart from GMET. £15m valuation of POW; has c£7m nett in cash and still c£7m invested in GMET (c20% holding).The rest of the business is valued by the market for c£1m. Good risk/reward potential for new shareholders. |
RNS this morning showing good progress at the Uranium JV:
“ Highlights
· Sampling results have confirmed the Antler Zone, a well-defined 1 km x 500 m target, initially identified from historical radiometric and magnetic geophysical survey data.
· Geochemical and radon gas results show potential for intrusion-related uranium mineralisation at the Antler Zone, including a 700 m trend of key indicators including radiometric decay ratios and anomalously high uranium, thorium, and rare earth element concentrations. Radon-in-water anomalies from three nearby lakes, support a proximal uranium source.
· Rock samples from the Antler Zone returned the Property's highest uranium values to date, including 1.68% U in a pegmatite.
· Northwestern Target area, located 7 km north of the Antler Zone, shows anomalous radon levels, high 206/204Pb ratios, and elevated uranium in soil samples, marking it as another promising intrusive-style uranium target on the Tait Hill Property.” |
Wholeheartedly agree with the above......long(suffering)term holder |
A very good post from Tray on LSE which I think is a sound analysis of today’s RNS:
“ Some crazy comments on here this morning regarding this RNS and just proves AIM is in a total mess.
Sean has just secured the financial security of POW in a dire market for the next 3 years+ whilst retaining 20% of GMET.
Sean as soon as he came into the role of POW CEO, IPO'd GMET in May 2023. In just 21 months he has crystalised a significant multi million pound profit on that investment.
Hindsight is a wonderful thing. GMET could go up or it could go down in the coming months. The POW CEO has prudently secured the financial position of POW for multiple years whilst still retaining 20% of GMET and POW will still be the 2nd biggest GMET holder.
There is almost nothing to be negative about here. This is a great move and proves the POW model is in fact working very effectively. In fact, it's one of the best RNS I have seen since I became a POW holder many moons ago.
GMET is just one moving part in the POW portfolio. POW will now be debt free and have £7.5mil in the bank to progress all the other moving parts of the portfolio including some nice surprises along the way I would imagine.” |
Excellent news today.
Show me another Aimer with £7.5m in the bank, still holding 20% of Gmet worth another 9m and a pipeline of big projects.
Crazy valuation. |
Instrument market cap (£m) 16.47A fair chunk of change if it goes through |
Well that sorts bonus for the execs for another year. |
GMET USA OTC Trades on Friday
The 577000 GMET shares traded in the USA is very interesting. It would rank as a good volume day for GMET in London where the volume on Friday was 122000 and is 20x the usual volumes on the OTC. When the OTC listing was upgraded Oliver said he thought trading by US investors would become a significant part of the volume and shareholder base. Perhaps this latest move by China has finally caught the attention of US investors. It will be very interesting to see the volumes in the UK tomorrow morning and then the US volume in the afternoon.
Perhaps the higher POW volume was related to the GMET rise on the OTC which took the share price in the USA to the equivalent of 39p compared to 32.5p in the Uk. POW is a very cheap way to get exposure to GMET. |
Much higher volume than usual today of 1.5 million from 16 trades. Sean has been very quiet this year which is very uncharacteristic. Hopefully increased volume is in anticipation of a major update from our CEO. Shares now Up nearly 3%. |
The second GMET RNS this week is about copper at Pilot Mountain:
“ Oliver Friesen, CEO of Guardian Metal, commented:
"We are very pleased with the confirmation of high-grade copper and molybdenum mineralisation at surface from a newly discovered mineralised breccia found within the Porphyry South target. These results validate our belief in 6the significant potential of Pilot Mountain as a large-scale multi-metal project. The discovery of a hydrothermal breccia zone with outcropping Cu-Mo mineralisation is a game-changer for this underexplored target area and underscores the potential scale and quality of this asset."
The share price is rising this morning currently Up 3.66% which is good to see after yesterdays bizarre drop on good news that the purchase of the new tungsten mine was progressing in accordance with the stated timeline. |
Gmet makes up all Pows mkt cap with everything else in for free. |
Am I right in believing that the POW share price is at the same level today c13p when GMET was still in the low 20's ? Given that POW own 45% of the latter stock which is now at valued at 33p - POW should be at least 17p - with the rest of POW portfolio priced to fail ! |
That's the issue and in the recent OB update it didn't get a single mention - they'll need to sell something or raise equity. |
I have no idea. An update would help to give some vision as to our requirements. |
What do you think this years costs are going to be? The major projects such as the Uranium JV and Power Arabia have been financed at project level. Fatty Bell paid POW £200000 in December and should have paid the outstanding £50000 this week. RRR should pay POW a further £250000 in cash to redeem some Convertible Loan Notes on 19th March.So there is £500000 by the end of the first quarter. If they need a top up I think Sean would be able to secure further funds either at the then share price or at a premium from a professional investor as he has done in the past and as Oliver has done at GMET. |
Pow should be prepared to let a small amount of Gmet go to cover this years costs rather than do a dilutive placing unless Sean can pull off another above current share price raise but j think in this market that ship has sailed. |
Why would they sell an investment that is highly likely to do at least another 100% rise in 2025. GMET is their flagship investment which they should retain as I don’t think any of their other investments will give them a better return this year as they are still very early stage. |
Why doesnt POW sell down? |
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