Power Metal Resources Share Discussion Threads

[broken_arrow1] 20/12/2021 15:47

Noirua

Without wishing to contradict I mentioned a few posts back if 1.35p support goes then .975p is the next meaningful support level.

There are still warrants priced at .75p that do not expire to late July next year, 210m were issued on July 6th 2020 in the £1m raise.

That is a bit of a drag to say the least.

[pensionplanner] 20/12/2021 13:41

Yet I don't it think it is for gamblers only.

I've been a major critic of the business strategy with regards asset acquisition, limited exploration then IPO, as you have to have the money to explore or its a constant placing placing etc., which is in common with junior explorers, but the problem is many of the junior explorers have production in mind, which can be what sets the price alight upwards, but where in our case we have to expend cash to firm up and asset with no prospect of cashflow which in this environment is hard going.

Looking at the assets though, they seem worthwhile, and uranium for example is going to be more and more in demand and would no doubt be eyed up by some of the larger players, where then perhaps the IPO model can be amended to being open for large players but where we receive cash and keep a free play, as I believe that model may be better suited to this environment.

Many of the explorers in the resource sector are suffering, and you have to wonder whether its by design, as its far cheaper when these big players KNOW categorically they will not be able to meet the demand for gold, silver, uranium, cobalt etc. etc., that they will let the smaller players dabble at their expense then come in to pick up the best of the best far cheaper than going for the leases in the first place.

[noirua] 20/12/2021 11:36

If the malaise continues, noting GGP has slumped well below its placing price of 14p heading to 10p, then POW looks like testing the 1.25p target as an IPO of anything in this market looks doubtful - except as a fire sale.
The 1.7p - 1.9p share price looks a long way upstream now. Gamblers only as of now.

[noirua] 18/12/2021 11:26

The header has been adjusted for smaller devices. As I use a very large screen 31.5" the header became too wide and it is now adjusted. Hopefully OK now.

[soulsauce] 17/12/2021 12:38

And no surprise to see the share price drop back on that news 🤔

[noirua] 17/12/2021 11:33

Taken from RNS - Power Metal can confirm that, save for 11,250,000 December 2019 Warrants held by current insiders, further details of which are provided below (the "Insider Warrants"), all December 2019 Warrants have been exercised.

[noirua] 17/12/2021 10:48

Gold is back over $1,800 this morning so a matter of crossing fingers in hopes it will build from here.

[noirua] 16/12/2021 21:09

A turnaround today in the gold sector as gold rises. Maybe this time the cheap sector will maintain a recovery as giant Newmont $56 billion m/c is up 9% and just might lead the way out of the swamp the sector is stuck in.

[soulsauce] 16/12/2021 12:47

Thanks dgbell. Like you was, I am a telegram sceptic. Maybe it's something I should get on to in the new year.
Atb.

[dgbell7] 16/12/2021 12:43

hi soulsauce yes they do have great assets imo and we have the spinoffs to look forward ro. The reason I mention the telegram group is it's more active than this board, good links to videos, some excellent posters. I'm just suggesting it as an additional input. I was a bit of a telegram sceptic until earlier this year and once I joined a few groups I found it my number one place to chat with like minded investors.Plug over and no I have no shares in telegram! just makes me sad to see folk selling at heavy losses here when there is still huge positivity in the telegram group. In any event good luck to all holders for 2022.

[soulsauce] 16/12/2021 12:33

Cheers dgbell.
I am not that negative here as I do believe they have decent assets and believe PJ will be successful.
But there is no doubting that warrants are dilution by another name and are bad enough when issued in to a decent market but in a market like this they are going to hurt you and are doing so.
Also warrants are a drag by a thousand cuts whereas raisings is one big hit but at the end of the day shareholders are getting diluted.

[dgbell7] 16/12/2021 12:21

Sorry to see the negativity on this board although I do understand it’s been a tough year for the price. I am on the Power Metal telegram group and can recommend it as an additional place for holders to visit, there is some excellent discussion on there imo.

[soulsauce] 16/12/2021 10:53

Unfortunately warrants are dilution just the same.
Hopefully PJ can get this back on track but it's bad enough with the markets how they are without being flooded with cheap warrants as well.
GL all.

[machinist] 16/12/2021 10:38

I finally had enough and sold my holding a couple of days ago at a considerable loss as I could not see the situation improving any time soon. I have never seen a company issue so many RNS in my 25 years investing with many of them about warrants.

Good luck to those still hanging on.

[noirua] 15/12/2021 16:52

Gold and silver shares across the pond are now falling through the floor. Any IPO is now completely out of the question.
POW is still converting warrants that brings in the cash but I fear holders are selling.
Time maybe to batten down the hatches and conserve cash that is King as of now.

[noirua] 15/12/2021 11:29

Diamond drilling in Victoria. Difficult to say whether it is a plus point or not. If it comes off good if not bad. Costs are a downside factor though managing to go-ahead with drilling a plus.

Kavango looks to hold a lot of importance for Power Metal. So what happens to drilling here looks to be well ahead of any other interest the company has. It is a gamble with very deep drilling taking place. Very high risk for reward.

[pensionplanner] 15/12/2021 08:36

Burton. Having potential assets is great, but the business model of Power is difficult in current climes because it takes money to firm up those assets, where the business model requires the firming up in order to obtain money?

It's a difficult model without production to buffer.

[burtond1] 15/12/2021 07:43

A Q&A with Power Metal Resources"...Over the past few years Power's portfolio of projects has increased steadily to the point where we are currently progressing 14 projects, in 7 countries on 3 continents. We are a truly global business offering a unique, diverse, and exciting portfolio of projects targeting a suite of commodities in demand globally..."https://total-market-solutions.com/2021/12/power-metal-resources-plc/

[algernon2] 13/12/2021 18:08

Aim is indeed a Cruel Mistress at the moment.
"Bah Humbug" as my Uncle Scrooge says at this time of year.
"Excelsior" I replied to him just before he boxed my ears.

[broken_arrow1] 13/12/2021 14:36

If 1.35p goes the next chart support is .975p, last hit in October 2020.

Would suggest stop losses being hit combined with warrant conversions/selling
+ poor market conditions implies further falls unfortunately for holders.

1.425b shares issued, market cap £19m

AIM can be cruel.

[volsung] 13/12/2021 12:47

That's me out.
Never seem to have much luck with miners

[noirua] 13/12/2021 11:10

Falling under the weight of warrant selling and others giving up on Power Metal as 1.25p approaches. The market cap is high in these circumstances so unless the climate improves in general in the sector or Power hit something good then 1.25p will only prove to be a shelf not a floor. The chart sees 1p as the real target.

[noirua] 10/12/2021 13:21

POW shares are up 500% from their low point in March 2020 at 1.5p. One of the biggest movers in the whole of the mining sector. But down about 58% from its high point.

Fortunately cash is not a problem though those warrants may drag the share price down to 1.25p unless the gold and silver sector suddenly turns as it has done before.

Upside looks to KAVango drilling very deep in the Kalahari. Investors appear to have taken some profits as matters drag on and on. Has to be something very good indeed with depths/ widths stretching out to 100 metres at good copper grades out to 7%.

[yasxii] 10/12/2021 11:51

A tranche of .70p warrants expire later this month but there are still around 200m .75p warrants that
replace them, they do not expire until 20th July next year.

In weak low volume markets these warrants are seriously value destroying, as the underlying share
price drops warrant holders, who can still double their cash, are moved to convert and sell, banking
profit.

One suspects POW ordinary shares have further to fall therefore.

[beerboy02] 09/12/2021 21:14

It just gets worse and worse lets Hope for a good RNS and a Santa rally