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Power Metal Resources’ Showcases its GMET ‘Power’ Play

31 January 2024 13:41
LON: POW

Golden Metal Resources PLC (AIM:GMET, OTCQB: GMTLF) is an exploration development company with a focus on critical and precious metal exploration in Nevada.

The Company listed on London’s junior market in May last year, as a spin off from Power Metal Resources PLC (AIM:POW), who retained 61.03% stake in GMET.

Its flagship Pilot Mountain Project is recognised for hosting the largest tungsten deposit on American soil.

The current Mineral Resource Estimate (MRE), established in 2017 and 2018, stands at 12.53Mt at 0.27% W03, featuring noteworthy copper-silver-zinc credits and expansion plans.

Since its listing, the Company has undergone exponential growth, with its share price surging almost 70% within six months.

Initially valued at £7.2 million, based on an issue price of 8.5p per share in its IPO, Golden Metal Resources has nearly doubled its market capitalisation, which now sits at £12.69 million.

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Figure 1: Golden Metal Resources share price over six months

GMET’s London Stock Exchange-listed share price is currently trading at 14.83 Great British Pence (12.30pm UTC+ 8 hours).

Power Metal Resources

The vast growth observed by Golden Metal Resources is, in part, a testament to Power Metal Resources’ strategic business model.

POW identifies opportunities across a global portfolio, develops said projects internally or through strategic joint ventures, until the projects becomes ready for disposal through outright sale or separate listing on a stock exchange.

This proven model is evidently successful, generating value for Power through its internal exploration and development efforts.

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Figure 2: Power Metal Resources business model

In addition to its spin-off’s success, Power holds the largest listed uranium focused asset in London, which continues to perform well in tandem with increases to uranium spot price.

The Company’s uranium holdings in the Athabasca Basin, Saskatchewan, encompass seventeen wholly-owned properties, featuring projects with high prospects for uranium, intrusion-related uranium, and uraniferous pegmatites.

Power has conducted exploration on Tait Hill, Clearwater and Beaverlodge, yielding encouraging results and confirming historical prospectivity.

While not as predominant as Golden Metal, Power has observed comparable growth on the AIM exchange.

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Figure 3: Power Metal Resources share price over six months

First Development Resources

As Power looks to replicate the success of Golden Metal Resources, it plans a spin-out vehicle for First Development Resources, who are currently undergoing pre-IPO process in preparation for listing.

FDR boasts a portfolio encompassing three copper-gold projects in the Paterson Province of Western Australia and a uranium and rare earth elements (REE) Project in the Northern Territory.

Power Metal Resources is the largest shareholder of First Development, holding a 58.59% stake, positioning it well to capitalise on the Company’s potential future success.

POW’s London Stock Exchange-listed share price is currently trading at 0.85 Great British Pence (12.30pm UTC+ 8 hours).

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