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

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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

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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

research@gbc-ag.de

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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

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Completion: 18.05.2026 (15:15)

First distribution: 19.05.2026 (10:00)

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2329262 19.05.2026 CET/CEST

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