Previously known as African Battery Metals PLC, and before that Sula Iron & Gold PLC, the explorer has diversified into platinum group metals, copper, cobalt and nickel after discontinuing its earlier iron and gold exploration at Ferensola in Sierra Leone.
In August Power Metal also welcomed new leadership, with Paul Johnson promoted to chief executive.
“I intend to make a long-term commitment to building Power Metal Resources into one of the strongest exploration and development companies in London.
“In line with this objective, we have made a great start in recent months with exploration success in Cameroon (cobalt) and the DRC (copper), where both projects have to date exceeded our expectations,” said Johnson.
What it owns
The Power Metal portfolio consists of four major assets:
- Kisinka copper-cobalt project in the Democratic Republic of Congo in which a 7 kilometres zone anomalous for copper has been identified
- A suite of cobalt-nickel projects in Cameroon, neighbouring the Nkamouna-Mada project, which is currently the largest cobalt project anywhere in the world outside of the Democratic Republic of Congo
- A 25% stake in the Haneti project in Tanzania currently being worked up by Louis Coetzee’s Katoro Gold PLC (LON:KAT), with a right to increase its interest to 35% through the payment to Katoro Gold of £25,000 in cash by 15 May 2020
- A nickel, platinum group metals and copper exploration complex in Botswana that’s wholly owned by Kalahari Key Metals in which Power Metal has 18.26% rights for an additional 40% direct interest through a payment of US$500,000 by end 2020
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New countries, new prospects
Power Metal is propelling forward with ground work at all its sites.
In October the explorer welcomed a £100,000 fundraise from Katoro Gold to advance the Haneti nickel project in Tanzania, where chief executive Paul Johnson said the group “working closely” with Katoro to review the full extent of Haneti’s resources, which as well as nickel might be also be economic quantities of platinum, gold, copper, lithium and rare earth elements.
In August, mapping and sampling results on its cobalt-nickel project in Cameroon showed similar geology as at the nearby Nkamouna project,between Power Metal Resources' cobalt-nickel project in Cameroon and the Nkamouna project, which is believed to be the largest defined cobalt resource outside the Democratic Republic of the Congo.
Meanwhile, its Kisinka copper-cobalt project in the Democratic Republic of Congo underwent field operations including sample testing (across 663 samples) and preliminary analysis identified a 7 kilometres zone anomalous for copper.
The company reported in July that ground geophysics work to identify the most attractive geophysics targets is close to completion at the Molopo Farms nickel-copper complex in Botswana.
In terms of financial results, in June the newly rebooted company reported a £0.79mln loss for the six months to March 31, almost unchanged on the £0.78mln loss reported a year earlier.
At the end of March, Power Metal had £6.09mln of net assets including £601,000 of cash and equivalents.
Such losses are likely to continue until the new prospects start to produce results, but with Power Metal’s underlying asset strength and the significant potential for battery materials as the electric car revolution gains pace, the future could hold much excitement for the group.
Shares were trading at 0.42p as of 4 October, and Power Metal Resources had a market capitalisation of £1.8mln.