Power Metal Resources Plc (LSE:POW) said it has moved into the next phase of exploration at its Balthaga rare-metals project in Saudi Arabia, launching a two-stage programme aimed at refining drill targets across the licence area. The work will focus on detailed mapping and sampling to better define priority zones, supporting Power Metal’s path toward increasing its earn-in interest to 30% while further validating the project’s potential for tin, tungsten, lithium and other strategic minerals across the 1,290 square kilometre licence.
The programme includes the mobilisation of technical teams from Power Arabia, SRK Consulting and The MSA Group, with a soil geochemistry campaign scheduled to follow Ramadan. Management said these activities are designed to sharpen drill readiness and position the joint venture to benefit from Saudi Arabia’s Vision 2030 strategy, which places increasing emphasis on the development of domestic critical minerals. The work also strengthens Power Metal’s longer-term strategic presence in the Kingdom.
From an investment perspective, Power Metal’s outlook reflects a mix of positives and challenges. The company benefits from strong revenue growth and a relatively robust balance sheet, but these are partly offset by operational execution risks and ongoing negative cash flows. While valuation metrics suggest the shares may be undervalued, technical indicators currently point to bearish trends, indicating a more cautious near-term market stance.
More about Power Metal Resources Plc
Power Metal Resources Plc is a London-listed mineral exploration and project incubation company focused on acquiring and advancing precious, base and strategic metal assets across multiple regions. Its portfolio spans several continents, including Saudi Arabia, where the company is targeting large-scale opportunities aligned with the Kingdom’s push to build a domestic critical minerals supply chain.
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