Original-Research: Power Metallic Mines Inc (von GBC AG): Buy
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Original-Research: Power Metallic Mines Inc - from GBC AG
06.10.2026 / 11:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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Classification of GBC AG to Power Metallic Mines Inc
Company Name: Power Metallic Mines Inc
ISIN: CA73929R1055
Reason for the research: Research Update
Recommendation: Buy
Target price: 3.00 CAD
Target price on sight of: 31.12.2027
Last rating change:
Analyst: Matthias Greiffenberger, Cosmin Filker
Deep drilling confirms Lion Continuity below the Maiden Resource
Lion's maiden Mineral Resource Estimate (MRE) marks an important milestone
for Power Metallic and strengthens its investment case. The estimate defines
4.145 million tonnes of Indicated resources at 3.86% copper equivalent
(CuEq) and 0.601 million tonnes of Inferred resources at 4.01% CuEq,
containing approximately 406 million pounds CuEq. Around 87% of the tonnage
is classified as Indicated, providing encouraging geological confidence and
a solid foundation for engineering studies.
The resource distribution offers promising development options.
Approximately 2.882 million tonnes, or 61% of the total, lie within the
conceptual open-pit resource. This near-surface inventory provides a
starting point for evaluating an initial open-pit operation, followed by
underground development. Although the maiden estimate is smaller than
management's earlier expectations, it establishes a high-grade base from
which to assess a practical mining strategy and pursue further expansion.
Palladium, platinum, gold and silver add potential revenue alongside copper.
Recent drilling reinforces the growth outlook. The MRE incorporates drilling
only through April 19, 2026, leaving the deeper summer results outside the
current inventory. September drilling intersected 5.70 metres at 14.00%
recovered copper equivalent near 800 metres vertical depth, supporting
Lion's continuation below the existing model. Follow-up drilling will help
establish the size and continuity required to incorporate additional tonnes
into future resource updates. Tiger and other district targets provide
further discovery opportunities.
Lion's maiden MRE could provide the foundation for further resource growth.
Muon imaging results, expected by management in late October, may help
identify connections to mineralised zones outside the current estimate and
guide follow-up drilling. Together with the encouraging deeper
intersections, this offers a promising catalyst for expansion at Lion and
could support further discoveries across the wider district.
Metallurgical results are another important strength. Laboratory tests
recovered more than 98% of the copper from both blended and lower-grade
samples, producing concentrates containing more than 25% copper. Strong
palladium and platinum recoveries also support the potential contribution of
precious metals. These results provide encouraging evidence for conventional
flotation, with further testing and commercial concentrate terms set to
refine the processing and revenue assumptions.
The PEA targeted for H1 2027 should assess an initial open pit at Lion,
subsequent underground mining and the possible inclusion of nickel-rich Nisk
feed. Nearby road and power infrastructure could reduce development
requirements, while shared facilities may improve the economics of a
combined operation. The study will be a key opportunity to demonstrate how
the resource, metallurgy and infrastructure translate into project returns.
We increase our valuation of Lion and Tiger to C$660 million from C$570
million, reflecting the defined resource and anticipated exploration and
development progress. Our revised framework incorporates the updated share
count and an assumed deduction for warrants and options. We maintain our BUY
recommendation and C$3.00 target price, equivalent to approximately EUR1.86 at
the assumed exchange rate. Further resource growth and favourable PEA
results remain the principal opportunities to substantiate the assigned
project values.
You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=a499cf11165abd0908bcd41870760368
Contact for questions:
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Completion: 05.10.2026 (15:15)
First distribution: 06.10.2026 (11:00)
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2411102 06.10.2026 CET/CEST
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