GBC AG initiates coverage on Power Metallic Mines Inc. – high-grade polymetallic discovery system in Québec with significant re-rating potential

GBC AG initiates coverage on Power Metallic Mines Inc. – high-grade polymetallic discovery system in Québec with significant re-rating potential

Augsburg, 26.03.2026 – GBC AG, the Augsburg-based research house specialised in listed small and mid caps, has initiated institutional coverage on Power Metallic Mines Inc. (ISIN: CA73929R1055). This is based on the initial coverage study first published on 17 March 2026. Power Metallic Mines is a TSX Venture Exchange-listed exploration company advancing the district-scale Nisk-Lion-Tiger project in Québec, Canada. The core investment case is centred on a high-grade polymetallic system containing copper, nickel, platinum group metals, gold and silver.

A key focus of the investment story is the Lion Zone, a rapidly expanding high-grade copper-nickel-PGE discovery with multiple strong copper-equivalent drill intercepts. In GBC’s view, Lion has the potential to become a company-making asset. This is complemented by the already defined Nisk resource, which provides a technical foundation and reduces the binary risk profile typically associated with pure exploration stories. Additional target areas such as Tiger and further geophysical anomalies underline the district-scale nature of the project.

Another important value driver is the early and encouraging metallurgical validation. According to the study, locked-cycle flotation tests indicate very high recoveries across key payable metals as well as the ability to generate a clean and saleable copper concentrate. Combined with the favourable infrastructure in Québec, including road access, hydroelectric power and proximity to the Cree community of Nemaska, GBC believes the project is positioned more favourably than many comparable exploration projects.

“Power Metallic Mines combines an exceptionally exciting high-grade discovery with a clear re-rating pathway driven by additional drilling, metallurgy and a maiden resource estimate for Lion. What we find particularly compelling is that Nisk already provides a technical foundation, while Lion and Tiger offer substantial additional upside. In our view, the company is addressing one of the most attractive polymetallic exploration stories currently emerging in a premier Canadian mining jurisdiction.”
– Matthias Greiffenberger, Analyst at GBC AG

From GBC’s perspective, Power Metallic Mines is in a strong position to advance the project further. As of 30 September 2025, the company held approximately C$31.3 million in cash, which GBC considers sufficient to fund the intensive exploration program through 2026. The ongoing 100,000-metre drill program is designed to continue expanding the Lion Zone, test additional target areas and lay the foundation for further value creation milestones.

Using a sum-of-the-parts valuation approach, GBC derives a fair equity value of C$674 million, equivalent to C$2.85 per share (EUR 1.81). The valuation is primarily driven by the contribution from the Nisk resource and the Lion and Tiger system. Based on this, GBC rates the shares BUY.

The full research report is available on the GBC website or at following link: https://eqs-cockpit.com/c/fncls.ssp?u=18015a90bcccff4cd34bda5bf1233278

About Power Metallic Mines Inc.
Power Metallic Mines Inc. is a Canadian exploration company focused on high-grade polymetallic mineral deposits. Its flagship Nisk-Lion-Tiger project is located in the James Bay region of Québec and hosts nickel, copper, PGE, gold and silver mineralisation across a large geological trend. In addition to the existing Nisk resource, the Lion and Tiger zones provide the basis for further exploration and value creation potential.

Risk notice:
This announcement neither constitutes financial analysis within the meaning of section 34b WpHG nor investment advice or a recommendation. Investments in shares are generally associated with risks, including the possible total loss of the capital invested.

Notice on potential conflicts of interest pursuant to section 85 WpHG and Art. 20 MAR:
GBC AG and the responsible analysts note that the following potential conflicts of interest may exist at the time of publication: 5a,6a,11. Further details can be found in the full research report and at: www.gbc-ag.de/de/Offenlegung.

Press contact:
GBC AG
Phone: +49 821 241133 0
Email: research@gbc-ag.de