Power Metal Resources Share Discussion Threads

[volsung] 09/12/2021 13:46

Bought a few more for 1.5p
Sorry I invested here tbh

[noirua] 09/12/2021 10:52

Generally today's RNS is just a tad below neutral. Due to cash raising concerning Golden Metal that may come out well in an IPO. However, the markets rule the waves not Golden Metal.

[noirua] 09/12/2021 10:23

- Golden Metal has raised GBP750,000 through a Pre-IPO financing undertaken with First Equity Limited, corporate broker, at a price of 6.67p per Golden Metal new ordinary share of 1 pence each ("Ordinary Share), which will represent 18.75% of the issued share capital of Golden Metal on completion of the Restructuring and the Financing.

- 50% of Financing monies will be payable to Golden Metal by 31.12.21 and 50% by 31.01.22 whereupon Financing completion will occur ("Completion") and shares will be issued to Financing participants.

- Power Metal has subscribed for GBP75,000 of the Financing, subscribing for 1,124,437 Ordinary Shares ("POW Subscription").

- Following the Restructuring and completion of the Financing, Power Metal will hold a total of 49,874,437 Ordinary Shares representing 83.13% of Golden Metal.

- On the basis of issued share capital on completion of the Restructuring and Pre-IPO Financing the valuation of Golden Metal will be circa GBP4million, and Power Metal's 83.13% holding will be valued at circa GBP3.33million.

[soulsauce] 09/12/2021 10:23

Good news re Golden Metal Res.

[noirua] 07/12/2021 15:18

The news today is neutral on NBGC though it does show events are moving at a very early stage - cant be anything wrong in that. The gold sector is still on its knees but struggling to get out of the swamp - some of the bigger stocks like Newmont and Barrick are showing early signs of underlying strength - in the swamp that is.
Being a little fairer NBGC is OK as an early stage Victorian hope and dream minnow. Should be some interest in a flotation next Spring me thinks.

The US$ is strong of late against the A$ and GB£ so currency costs are even. The US$'s strength is very favourable to Australian gold producers. True NBGC hasn't got any gold but at least something to smile about.

[algernon2] 03/12/2021 20:46

Harsh words at Yuletide beerboy2 ?!

[beerboy2] 03/12/2021 20:32

When I first got into power I was really impressed with PJ and his frequent updates but after researching him and his previous companies it seems to be a trend that he talks the talk whilst shafting retail shareholders.

[noirua] 03/12/2021 12:15

Yet more warrant conversions. The market stall called 'warrants' has announced today that those who converted can have 1.52p if they want equalling a 117% profit - deal for December. The placard reads 'POW warrant holders, "Haven't You Done Well" - thank us and the great PJ'.

[yasxii] 02/12/2021 19:18

In 12 months POW has issued nearly 500m shares, from 872m to 1.35b, many of those share
issues have come from warrants priced sub 1p, no wonder the share price has no traction.

POW continue to go down the warrant route, the reason being POW's SI Capital clients demand
them, this is how POW manage to get their placing prices near market rates but the penalty is
continued forward selling of warrants once a profit is evident, this stalls the share price over
a long period of time.

It could be argued that POW succumb to the whims of a minority of investors (SI clients) to the
detriment of the rest of shareholders. Has Johnson ever considered the majority over the minority
one asks? Maybe the majority would prefer a 10%/15% placing discount verses tens of millions
of warrants issued to a privileged few.

Powder puff media interviewers do not ask such sensitive questions of course, it is very noticeable
that POW are rather shy of showing how many warrants remain to be converted and at what
prices, something prospective investors would be very interested in !

Another question, how many shares need to be issued to propel all the projects, many billions
over the next few years one would suggest, the BOD will continue to endow themselves with
options and bonus to counter the dilution of course.

Promise to tell the story, the true story and nothing but the true story !

[pensionplanner] 02/12/2021 15:02

I just wonder if Power will reconsider their business model, as with a depressed market IPO's may fail to realise anything like true value.

I know their model is well published but its also risky inasmuch as growth depends on selling on for far more than expended, with the better exploration results presumed to be a better IPO value, but that may not be the case currently.

Perhaps then the exploration status of our assets could end up with POW following through on the best of them, perhaps to production as some of the results from those assets look very good? That would ensure shareholders did get a return via dividends etc. and where production would rerate those assets and the company.

The cost of preparing a company for IPO is a great deal, so a change in business model would just utilise the costs for IPO to progress the best assets, possibly to production.

"Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets."

[soulsauce] 02/12/2021 09:15

Yes indeed PP.

[pensionplanner] 02/12/2021 09:12

soul. Oh they will always try something, whether its in the markets or create a war.

[soulsauce] 02/12/2021 09:03

PP let's hope the days of rigging the market are coming to an end. I am not so sure myself.

[pensionplanner] 02/12/2021 07:58

soul. All metals in my opinion as the days of COMEX and London rigging metals prices are fast approaching their endgame.

More and more realise the paper commodities market is literally rigging the markets, and there is no longer even a firm requirement to delivery physical as liabilities are transferred to London.

Short term its possible for the paper market to be so disconnected, as it does become sometimes, leaving physical requiring a premium for the real stuff!

[pensionplanner] 02/12/2021 07:55

Excellent figures but meaningless with the business strategy of offloading good assets to others.

Not the business model for the current climate really.

[kenwrong] 01/12/2021 23:13

Another good interview by PJ tonite, update on the FDR Australia and Golden Metal hxxps://youtu.be/RniEd_rmgC4

[soulsauce] 01/12/2021 17:07

Excellent figures.
The commentators are saying in the not too distant silver could be trading in 3 figures.
An excellent hold in the portfolio of projects.

[noirua] 01/12/2021 14:48

From today's RNS
Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:
Project Location POW % Work Completed Results Awaited
or Underway

Alamo Gold USA Earn-in Excavation of multiple Field results from
Project to 75% test pits and mapping on-site work programme.
& sampling.
---------- --------- -------------------------- -------------------------
Athabasca Canada 100% Phase I field exploration Laboratory assay
Uranium completed results of samples
collected for uranium
and REEs
---------- --------- -------------------------- -------------------------
Authier North Canada Earn-in Soil & rock sampling Laboratory assay
Lithium to 100% completed results of samples
collected
---------- --------- -------------------------- -------------------------
Ditau Project Botswana 50% Preparatory exploration Field programme
work underway on findings and defined
target I10 leading drill targets for
to planned accelerated near term drilling.
drilling targeting
rare-earth elements
and base metals
---------- --------- -------------------------- -------------------------
Kalahari Copper Botswana 50% Exploration programme Field programme
Belt underway across findings and defined
the South Ghanzi drill targets for
Project and further near term drilling
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- --------- -------------------------- -------------------------
Molopo Farms Botswana 53% Kavango Option Results from various
to acquire an interest work activities
in local project underway as part
holding company. of the Kavango
Option fee payable Option
through defined
work programme
---------- --------- -------------------------- -------------------------
Tati Gold/Nickel Botswana 100% Reverse circulation Laboratory assay
drill programme results awaited
completed
---------- --------- -------------------------- -------------------------
Victoria Goldfields Australia 49.9% Ongoing exploration Results from field
across 848km(2) programme including
of granted exploration drill targets for
licences near term drilling
---------- --------- -------------------------- -------------------------
Wallal Gold/Copper Australia 83.33% Passive seismic Results awaited
Project and 2D seismic
processing work
programme completed
---------- --------- -------------------------- -------------------------

[noirua] 01/12/2021 11:06

Reversing as the likelihood of IPOs going ahead looks dismal. This means financing of interests with no return probable unless shares in Kavango are sold.

[noirua] 30/11/2021 13:51

If shareholders want cheering up a bit here is my 26 year holding in an Australian mining company.

I first purchased Meekatharra Minerals Limited in 1983. Formed as Meekatharra Gold in 1899 and delisted in January 1940. Came back to the market at 25c in 1970.

My first purchase was at A$1.65 in 1983 and quadrupled my holding at 8c in 1999 when there was a name change to Auiron Energy which was also quoted later on AIM.
The shares reached 51p A$1.35 in 2001 tipped by TW on the TV programme 'Show Me The Money'.

The share later tanked though TW did say to take some profits at around 43p.

In 2003 I increased my holdings about 25 fold between 1.5p and 3.25p. The old management resigned and the new MD named the company after his cat and so it became Felix Resources Limited ASX: FLX. He resigned in 2004 after screwing up a mining agreement with Rio Tinto.

The new MD Brian Flannery joined the board in 2004 and the company timed it well buying Australian coal mines. The shares were part of a 1 for 10 consolidation and cash raised at A$2.90.

I sold part of my holding at A$23.00 in 2008 and the shares then sharply reversed hitting A$4.80 - such are the mining gyrations.

In late 2009 there was a takeover bid at A$18.05 by the Chinese miner Yanzhou Coal.


How a share can be A$1.65 in 1983, 8c in 1999, A$1.35 in 2001, 3.5c in 2003, A$2.32 early 2008 (A$23.20 after consolidation), A$4.80 early 2009, and taken over A$18.05 late 2009, absolutely beats me.

Anyway, that story does show how POW might be worth 0.1p or £1.00 sometime in the future.

[algernon2] 30/11/2021 12:46

I am just hoping it can "turn on a dime" at any moment. It would be nice to have that moment sooner rather than later. Excelsior-keep the faith!

[yasxii] 30/11/2021 07:52

Recent promotes by Paul Johnson suggest now is the time to buy because he believes
the sector will recover shortly but fails to acknowledge that when a sector is in the doldrums
it can last for years.

Last year there were very strong re-rates, many hapless juniors sitting on market valuations
£2m to £3m propelled to £10m - £15m - £20m, if the cycle remains in downturn, despite %
losses this year, there could be a long way to go for recovery.

How long can they wait to bring to market the IPO's, the respective licences have financial
commitment, so far no cash has been forthcoming via the IPO route.

It is pretty clear POW will have to raise cash again to fund the web of
projects, this is probably why the shares are on the slide.

[observer007] 29/11/2021 19:06

There is very little evidence that a project IPO/new listing generates increased shareholder
value for the owner or owners of that said project, even less when you consider the cost
and management time involved.

Look at Kibo Energy, their stake in Mast Energy is worth £10m and their stake in
in KAT £2m but Kibo themselves are only valued at £6m.

The problem seems to be that a major shareholder like POW (who would retain a
material interest in most of their intended IPO's) would struggle to sell these
stakes without depressing the share price of the IPO company, in other words
the stake values are significantly discounted by the market, another downside is that
the owner % stake is much reduced because of the IPO and future placings, leaving
little gain for shareholders.

To conclude I feel POW investors hoping for strong upside from the proposed
IPO's will be disappointed.

[pensionplanner] 29/11/2021 18:49

soul. Very nice update but its an update based on assets that are being divested, and nothing guarantees shareholders will see the benefit of any spin off of what looks to be very decent assets.