Power Metallic Mines target raised as maiden Lion resource estimate points to high-grade, copper-rich project
Hannam & Partners has raised its price target on Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) by 13% to C$2.70 per share, from C$2.38 previously, after the company released a maiden mineral resource estimate for its Lion deposit alongside an updated estimate at Nisk.
The 2026 Lion MRE outlines 4.75 million tonnes grading 3.9% copper equivalent, containing 80,500 tonnes of copper, 528,000 ounces of platinum group metals and 72,000 ounces of gold, with 87% of the resource classified as Indicated.
The resource splits into a 2.88-million-tonne open-pit portion at 3.4% CuEq and a 1.86-million-tonne underground portion at 4.6% CuEq, and remains open in multiple directions. The updated Nisk MRE comprises 4.72 million tonnes at 2.6% CuEq.
“With favourable metallurgy, multi-metal exposure, a Tier 1 jurisdiction and district-scale exploration upside, we see potential for Nisk to evolve into a strategically relevant source of critical metals,” analysts wrote.
Analysts noted Power Metallic remains fully funded to complete roughly 100,000 metres of planned drilling through 2026, supported by a C$28 million financing completed in June. Five rigs are currently operating as the company’s summer campaign tests extensions of the Lion zone and advances exploration across the wider Lion-Nisk project, which spans a 313-square-kilometre land package.
Hannam & Partners has built a provisional discounted cash flow model for a combined open-pit and underground operation at Lion-Nisk, using a base case throughput of 0.5 million tonnes per annum and average CuEq output of about 17,000 tonnes per year, alongside an upside case of 1 million tonnes per annum and roughly 40,000 tonnes of CuEq output.
Using a 6% weighted average cost of capital, the firm calculates a base case net present value of US$309 million and an upside case NPV of US$840 million, with internal rates of return of 47% and 71%, respectively.
After applying a blended price-to-net asset value multiple of 0.63x and adjusting for projected December 2026 net cash and dilution from outstanding options and warrants, Hannam & Partners’ updated target implies 78% upside from current levels.
Near-term catalysts include drill results from the summer program and completion of the PEA, expected in the first half of 2027.
