Running on Empty? Chaos Around Strategic Metals Drives Prices Higher– Power Metallic in Focus for BYD and Volkswagen

Power Metallic Mines: The Race to Catch Up Begins

The challenges are significant, but CEO Terry Lynch is not afraid of them. Because with his NISK property, he has decades of potential in the ground; the faster he brings it to light, the more value it creates for shareholders. The explorer Power Metallic Mines has now drilled several tens of thousands of meters; in addition to diverse polymetallic contents, copper has emerged as the most interesting discovery. The current and announced exploration program alone comprises around 100,000 m of planned new drilling through the end of 2026, marking the project's transition into a clearly industrial exploration phase. This scale demonstrates that Power Metallic is no longer in an early "proof-of-concept" phase, but is already systematically working toward resource definition and potential open-pit mining scenarios. According to NI 43-101 standards, the project already comprises an indicated resource of over 5.4 million tons of ore and an inferred resource of approximately 1.8 million tons, with attractive nickel-equivalent grades. This creates a raw materials cluster that supplies not only copper but also strategically critical minor metals for the energy transition.

The Lion Zone continues to deliver high-grade drill results, including 22 m at 11.46% copper equivalent (CuEq) and 17.45 m at 9.47% CuEq, confirming the system's exceptional metal intensity. Additional intervals, such as 39 m at 5.66% CuEq, underscore the continuity of the mineralization and the potential scalability of the deposit. With a land package of approximately 330 km² and about 50 km of promising geological structures, the exploration potential remains considerable. The planned resource estimate in the third quarter of 2026 is therefore likely to be a key catalyst for Power Metallic and its shareholders.

Furthermore, the company is surprising the market with a shift in focus to Saudi Arabia. There, it has entered into a promising joint venture with Amaar Mining, which provides for a 50/50 structure for future license auctions in Saudi Arabia and positions Power Metallic as the technical lead and potential operator, while Amaar handles local regulatory and strategic engagement. This partnership provides the company with scalable access to one of the world's fastest-growing mining regions and significantly diversifies the project pipeline beyond Canada. With a rapid rise from CAD 1.00 to CAD 1.50 in just 6 weeks, the stock is flexing its muscles once again. We had already recommended building a position; based on the current consensus average of 4 expert estimates on the LSEG Refinitiv platform, the discount is still nearly 80%. A great long-term story!

BYD: China's EV Star Under Pressure

The discussion about scarce raw materials and fragile supply chains is not even taking place at BYD yet, because China offers every advantage in this regard. This advantage does not help the stock price, however, as hopes for a sustainable recovery in the popular BYD shares have once again largely fizzled out. Following last year's sharp correction, the share initially bottomed out at around EUR 10. It even benefited at times from geopolitical tensions, as higher gasoline and diesel prices could support demand for electric vehicles. However, this interim recovery to just under EUR 12 has since been completely erased, and the stock has once again slipped into a defensive position.

The main reasons for this are the familiar headwinds: overcapacity in the Chinese market, rising price pressure, and concerns about further margin contraction. Meanwhile, the rollout in Europe is proceeding according to plan. Backed by deep discounts and production in Hungary, the company is trying to gain a foothold in Europe; new registrations recently came close to reaching the 2% mark. At least that is something! With a 2026 P/E ratio of 18.7, BYD is currently valued significantly lower than its historical average, but for an automaker, that is still no bargain. For investors, the risks currently outweigh the opportunities, while a genuine turnaround is not yet in sight.

Volkswagen – Targeting Nostalgic Customers with the New E-GTI

Far removed from discussions about a slumping stock price, Volkswagen is adding the next emotional highlight with the new ID. Polo GTI, giving the electric vehicle a truly sporty touch for the first time. With 226 hp, 0 to 100 km/h in 6.8 seconds, and a top speed of 175 km/h, the model aims to demonstrate that electric mobility can be not only sensible but also appealing. Added to this is a dedicated GTI driving profile that delivers power and torque continuously. With its racing-style cockpit, it appeals to fans of the 1980s who used to race the rocket-like Polo G40 through the curves. Priced starting at EUR 39,000, this electric hot rod targets buyers who want to inject a bit more spirit into the somewhat outdated Polo. This is a smart strategic move for the group, because emotions in the electric vehicle market are often just as important as range and technology. On the stock market, however, the launch largely fizzled out because the big question for VW is not the next special edition model but rather its weak share price momentum and skepticism toward its core markets in the US and China. As long as inflation, consumer caution, and sales concerns remain at the back of investors' minds, even an electric GTI alone is unlikely to be enough to pull the stock out of its slump. However, with a dividend yield of just under 7% and a 2026 P/E ratio of 4.8, not much can go wrong.

Investors looking to enter the critical metals market must seek out projects with selective strengths. Power Metallic Mines holds a property that will last for decades. Dynamic investors should also factor in a potential acquisition deal here. Automotive stocks have recently been swinging up or down with every news report. A true upward trend has not been evident in this sector for the past three years. An investment, therefore, requires strong nerves and a coherent long-term vision.