Is this the year for Power Metal Resources to really shine?
“…Drilling is our new theme. Maybe we can make it through 2022 continuously drilling…”
The sell-off in the junior market in the final quarter of last year was described as merciless and brutal by most commentators and an overdue correction by the very few.
And despite personal losses, the chief executive of Power Metal Resources is mulling whether the sell-off wasn’t such a bad thing.
Paul Johnson says his shareholders are his primary concern, but the uncomfortable truth was the market bled out those unable to hold when prices were at, what he describes as, discounted levels.
He is hopeful that those who survived the cleanse will be rewarded this year. Johnson says “I suspect we’re in for a ripper. When sentiment is on the floor and everyone is miserable that’s usually when it kicks and we go from rabid undervaluation to rabid overvaluation.”
He’s hoping for dramatic returns over the next 12 months after laying the foundations of value creation “through spin outs and disposals, and extensive exploration yielding what the market deems to be a major discovery.”
Drilling is Power’s theme of 2022 and the company-making discovery an almost singular focus of the business as it progresses 14 projects across six countries. In his most recent interview four projects get honourable mentions including the Silver Peak asset in Canada described as a “standout project,” and the uranium project in the Athabasca region with its considerable third party interest.
He’s excited because “There’s no boom like a uranium boom.”
Thankfully it’s not a boom or bust scenario for Power as it is well funded, and Johnson doesn’t subscribe to the view that institutional interest is essential to give ballast or kudos to a junior explorer.
Listen to Paul tell Sarah Lowther about the extensive drilling programme the company hopes to be continuous throughout 2022 and its vigorous recruitment campaign.
01:32 – Will the business philosophy generate value in 2022?
03:22 – Which part of the portfolio will provide the company-making discovery? Johnson says the company is “maximising a very big portfolio in a number of different ways.”
05:34 – What’s behind the change in perception where the junior market mining sector is concerned, and why Paul suspects the company is in “for a ripper.”
07:32 – How can investors put a value on #POW’s multi-asset portfolio?
09:17 – What will the cash reserves and funds raised in November be used for? “We’ve morphed into a heavy exploration drilling phase in the company. Drilling is our new theme. Maybe we can make it through 2022 continuously drilling.”
10:44 – Will POW be coming back to the market for more finance? “I want to move us into a position of finance self-sustainability. This company does not do heavily discounted financings while I’m in charge, so have confidence in our stock.”
12:02 – Is an asset disposal of silver peak one way of raising finance? Johnson says he’s working out the commercial avenues for this “standout project” and the potential third party interest in the uranium project in the Athabasca region.
13:58 – What is it about uranium that is exciting investors? “I think we might have a heck of a uranium run. We need to get some vehicles running in the uranium space. We are in the heartland of major interest for uranium corporate activity and with POW investors are exposed to one of the most exciting spaces within the commodity sector. “There’s no boom like a uranium boom.”
15:57 – How important is institutional investment support? Johnson can’t understand institutional reticence when “We’re clearly on the cusp of a major sector shift higher.”
18:16 – Is POW talking to any institutional investors?
19:31 – Do investors understand the nonconformist nature of the business? “There are certain events that I believe will happen in 2022 that will really help people’s confidence including the success of the IPOs, and the success of our drill programmes across our projects.”
21:15 – What did POW do very well in 2021 that will be incorporated into 2022?
23:40 – Who’s mentoring Paul and are more Non-Executive Directors required on the board? “The search for new board members is very active.”
26:17 – What are the key specifics on the corporate timeline? “We’ve got a fantastic model. We’ve worked like dogs to build this and we’re really proud of what we’re building.”
30:30 – Johnson talks about his pride in the exploration programmes. “We’re using some super fantastic technology that’s identifying these potential deposits under the ground. When that drill programme starts, it’s an amazing thing to see it happen to see it move into mobilisation and into actual drilling.”
Access the company’s quarterly business operational update and latest corporate presentation
Follow the company on Twitter – @PowerMetRes
Read about POW in our 12 Mining Companies to Watch feature
The author was remunerated but does not hold shares in the company
