Stockbox Interview with Shaun Wade & Rick Rule

Overview

• Interview conducted at Mining Journal Select, London
• Guests: Shaun Wade (CEO of Power Metal Resources) & Rick Rule (Rule Investment Media)
• Discussion on investment strategies, market trends, and company activities

Rick Rule's Keynote Speech

• Emphasized buying out-of-favor assets
• Mentioned lower attendance at the conference compared to the 1980 New Orleans conference

Mean Reversion in Gold Markets

• High demand expected for gold through mean reversion
• Mining equities, explorers, and physical commodities currently under-owned in portfolios

Merchant Banking Model

• Defined by Rick as value-added investment banking
  • Adds money and expertise
  • Often privately held
  • Example: Goodman family Merchant Bank Dundee Bank Core, Robert Friedland's ventures
• Rarely available in public mining context

Power Metal Resources (POW) and Merchant Banking

• POW model involves taking early-stage opportunities, adding value, monetizing it
• Rick's involvement based on the grounds of investing with seasoned professionals like Shaun Wade
• Prefers companies with multiple projects over single-project ventures

Metrics for Assessing Success

• Net Asset Value (NAV) per share as primary metric
• Capital efficiency emphasized
• Importance of consistently evaluating portfolio companies

Shaun Wade on Delivering NAV

• Examples from POW:
  • Gold or Metal Resources (soon Guardian Metal Resources)
  • Successful IPO and significant market cap growth
  • Uranium portfolio with potential deal valuing it at £10 million
• Upcoming focus on Saudi Arabia projects
  • Early-stage fieldwork completed
  • Looking to replicate successful models from North American assets

Future Strategies & Focus

• Exploration and crystallization of value (IPOs, JVs, etc.)
• Potential for more partnerships in Saudi Arabia leading to mine development
• Importance of self-sustaining business units
• Guardian Metal Resources as a successful model for the company
  • Managed by Oliver Friesen, showing significant operational and market achievements

Long-Term Investment Perspective

• Rick Rule's rationale for continuing to invest in POW
  • To get in on the ground floor through proven and experienced teams
• Rick's recent investment inspection revealed new ground-floor opportunities although appearing overpriced

Closing Remarks

• Importance of continuous market assessment and strategic investments
• Emphasis on Rick Rule's confidence in Shaun Wade's leadership for POW

Extra Information

• Contributions and partnerships at the upcoming Rick's Symposium
• Predicted bullish phase in the market