Power Metal Resources shares are trading near the lowest levels since the beginning of the pandemic after a disappointing run in the stock.
Power Metal Resources is a highly diversified minerals exploration vehicle with exposure to nickel, lithium, tungsten, uranium, gold, and PGEs.
There is a lot for junior mining investors to get excited about. For example, Power Metals have just begun lithium exploration activities in North America and directors have been buying shares recently.
Unfortunately, since the new CEO Sean Wade took the reins in March the Power Metal Resources share price is down circa 25%. The 1p mark is now only obtainable by a 50% rally.
The drop may be symptomatic of a challenging macro environment but a recent trip to the US by the POW team has failed to materialise in any noticeable buying pressure.
This will be a major disappointment for long-term holders of the stock – but it may well be just the opportunity those sitting patiently on the sidelines have been waiting for.
With a market cap of just £14m, there is strong evidence for the argument Power Metal Resources is undervalued. Not enough is written about the strength of the Power Metal Resources portfolio.
Former CEO Paul Johnson was a staunch believer that the junior natural exploration sector could explode higher with an improvement in sentiment. This is supported by historical price action in junior explorers.
However, the question still remains for Power Metals Resources – how low will the POW share price go before turning a corner?