Power Metal Resources (LON:POW) has received a buy rating from city brokerage First Equity.

Analysts wrote in a note that the company’s ‘swift’ expansion of activity in its Australian gold projects as the driver behind the rating.

Power Metal Resources has just made three new exploration applications for its 49.9% JV which would increase the acreage to 714km.

“It was only six days ago that POW first announced its entry into Australian gold exploration with the JV partnership with Red Rock Resources, which now provides investors with a broader exposure beyond African focused battery metal targeted commodities, along with one early stage US gold interest under due diligence,” First Equity wrote in a morning note.

“The new licence applications in Australia gives’ POW a sizeable footprint in a prolific gold mining district, near to the producing Ballarat mine, which currently produces 40,000 ounces of gold per annum at an average grade of 5.6 g/t.”

“POW will be able to analyse and study a wealth of historic exploration data from previous licence holders as part of an extensive desktop study ahead of the new licence applications being approved, to plan its first exploration campaign over the properties.”

Power Metal Resources shares trade on London’s AIM market and have a market cap of £1.8m.