Original-Research: Power Metallic Mines Inc. (von GBC AG): BUY

Original-Research: Power Metallic Mines Inc. - from GBC AG 19.05.2026 / 10:00 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: Power Metallic Mines Inc. - from GBC AG



19.05.2026 / 10:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.



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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:    31.12.2026
     Last rating change:
     Analyst:                     Matthias Greiffenberger, Cosmin Filker



New High-Grade Intercepts Confirm Investment Case



We maintain our BUY rating and increase our target price from C$2.85 to
C$3.00. In our view, the latest technical progress materially increases the
probability that Lion could ultimately justify a valuation well above our
revised base case. The expected maiden resource estimate, now indicated for
summer 2026 and no longer a distant 2027 milestone, is particularly
important because it could move Lion from a discovery valuation toward a
resource-backed and eventually economics-based valuation earlier than
previously assumed.



Importantly, our revised C$3.00 target price should be understood as a base
case, not as a ceiling. Management's internal expectations point to a
potentially sizeable high-grade Lion resource, with a possible 10.00 to
12.00 million tonne range at grades above 5.00% CuEq. If this scale is
confirmed in the maiden resource estimate and subsequently supported by
metallurgical recoveries of around 95.00%, high payable rates, moderate tax
assumptions and meaningful government support for project financing, Lion
could support a valuation materially above our current assigned value. Under
such a scenario, the project could move toward a value range in excess of
C$1.00bn at the asset level.



In our opinion, Lion's value is driven by a simple but powerful idea: the
metal appears to be highly concentrated. In mining, grade is not a cosmetic
detail. Grade is the economic engine. Higher grade means more metal per
tonne of rock, and that changes almost everything about a potential mine.
The reason this matters is straightforward. A high-grade orebody does not
require a company to move as much ground to produce the same amount of
payable metal. Less material movement can mean lower stripping requirements,
lower haulage intensity, less crushing and grinding, less tailings volume,
smaller infrastructure needs, and potentially a less capital-intensive
mining operation. Put simply, high-grade ore can give even a smaller mine
real economic significance.



That is the key reason we view Lion as a potentially premium asset. This is
not a low-grade bulk-tonnage concept that only works if the company can move
massive volumes of rock at very low unit costs. The value is concentrated.
The latest holes reinforce that point, with Power Metallic reporting 22.00 m
at 11.46% CuEqRec in PML-26-095, 17.45 m at 9.47% CuEqRec in PML-26-094, and
39.00 m at 5.66% CuEqRec in PML-26-101. These are not marginal grades. These
are very high-grade polymetallic intervals that support our view that Lion
could become a meaningful high-value core within a broader district-scale
system.



In our view, the latest results strengthen confidence in the assumptions
underlying our valuation framework and justify a moderate upward adjustment
to reflect reduced geological uncertainty, improved technical confidence and
the increasing probability that Lion evolves into a sizeable resource-backed
development opportunity.



The second part of the value proposition is polymetallic revenue density.
Lion is not simply a copper story. It is a copper-PGE-nickel-gold-silver
system. That matters because the recovered value per tonne is built from
multiple payable metals. Copper appears to be the dominant economic driver,
but palladium, platinum, gold, silver and nickel credits can materially
increase recovered value per tonne. This is why copper-equivalent grade is
such an important metric for Lion, provided it is supported by realistic
recovery assumptions and metallurgical test work.



The third part of the value proposition is processability. High grade alone
is not enough if the ore is difficult to treat. In our last report, we
emphasized that early metallurgy materially upgrades confidence because
locked-cycle flotation indicated very high recoveries and a strong copper
concentrate grade, supporting the "it can be processed and sold" question
earlier than is typical for a new discovery.





You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=ca2cb46fa4b0503145c8f291cf2fa22c



Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
[e-mail]
++++++++++++++++
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR
Beim oben analysierten Unternehmen ist folgender möglicher
Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher
Interessenkonflikte finden Sie unter:
https://www.gbc-ag.de/de/Offenlegung.htm
+++++++++++++++
Completion: 18.05.2026 (15:15)
First distribution: 19.05.2026 (10:00)



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2329262 19.05.2026 CET/CEST