Power Metal Resources PLC (LON:POW) has been rated at ‘buy’ by analysts at First Equity, who in a note to clients on Tuesday highlighted the “swift advancement” of its gold projects in Australia.
The broker said the company’s joint venture with Red Rock Resources PLC (LON:RRR), which on Monday announced that it had applied to expand its gold acreage in Victoria, Australia with the acquisition of an additional 581sq km in the Ballarat Goldbelt, provided investors with “a broader exposure beyond African focused battery metal targeted commodities”.
READ: Red Rock Resources' joint venture to expand gold acreage in Victoria
“The new licence applications in Australia gives’ POW a sizeable footprint in a prolific gold mining district, near to the producing Ballarat mine, which currently produces 40,000 ounces of gold per annum at an average grade of 5.6 [grams per tonne]”, First Equity said.
“POW will be able to analyse and study a wealth of historic exploration data from previous licence holders as part of an extensive desktop study ahead of the new licence applications being approved, to plan its first exploration campaign over the properties”, the broker added.
First Equity also concluded that the Australian gold projects will provide “increased potential exposure” to the haven asset of gold.
Shares in Power Metals were steady at 0.3p in late-morning trading.