Power Metal Resources set for IPO wave suggests research house

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Power Metal Resources PLC’s  (LON:POW) management team have impressively expanded the group’s project exploration portfolio, says research house First Equity.

Indeed, there is enough quality of prospective projects and assets within the group to form the basis for at least five or six separately listed companies, it adds.

‘Buy’ with a target price of 6.1p per share is the research house’s view, though it adds this is a pre-discovery and resource statement(s) valuation and will likely be revised upwards if a major resource deposit is discovered.

Assuming no retraction in near term resource prices, at least two out of POWs’ three planned holding companies will achieve a capital market listing by the end of this year, says First Equity, the first of which we anticipate may be Australian joint venture RRAL.

“The value achieved on the first listing will help to significantly underpin POW’s current market capitalisation.

“If the subsequent two or three IPOs prove successful and are well received by the market, then the management may seek to earmark and fast track other projects towards listing.”

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