Power Metal Resources is a diversified junior explorer with an exciting portfolio of global projects that spans ten metals including gold, lithium, tungsten, copper, PGMs, and Uranium.
Power’s strategy has been to build a diverse portfolio of assets and add value to each through internal exploration. They then seek to lock in this value through either bringing in a JV partner or disposing of the assets, possibly through an IPO.
Indeed, Power Metal Resources is currently preparing IPOs for subsidiaries Golden Metal Resources and First Development Resources.
These IPOs will of course provide an opportunity to lock in any value created at the projects, and have rightly been a main focus for the Power Metals team this year.
However, it was evident Power Metal Resources is already planning their next big move when Paul Johnson spoke at the UK Investor Magazine Summer Investor Evening 2022.
The Power Metals CEO made it clear they saw significant further growth in Uranium demand, and are aligning their portfolio accordingly.
“At Power Metal we see an opportunity to further build our uranium profile. This will be accomplished by undergoing exploration on our existing exploration portfolio, the acquisition of additional interests, as well as through investment holdings in new uranium focused entities that we can help to create,” Paul Johnson said in a recent update on their uranium activities.
Power Metal Resources & Uranium
Paul Johnson was clear in his views that nuclear would be central in meeting the world’s future cleaner energy demands. In addition, they have identified a potential shortfall between current levels of production capacity and forecast demand.
“Uranium prices sit far below the point of economic production for most miners of the yellow metal, so producers worldwide mothball their mines and instead buy uranium directly from the physical market at a lower cost,” Power Metal Resources said in their recent report on the Uranium market.
“Meanwhile, as we enter the 2020s, Covid-19 hits remaining production considerably and several nations begin to stockpile uranium as a matter of national security.”
“Suddenly, this previously oversupplied market is starting to look much tighter in the face of ongoing (albeit historically modest) demand. And with this, uranium prices once again begin to rise, hovering around the $27-32/lb range.”
To ensure Power Metal Resources captures any upside in Uranium prices, they have secured high-grade uranium mineralisation in the Athabasca Basin, Canada.
Power Metal Resources, through its wholly-owned Canadian subsidiary, controls a combined 41,196- hectares covering 7 project packages.
In addition to the Athabasca Basin, Power Metal’ subsidiary, First Development Resources, operates the Selta project in Australia.