Siemens Energy's Costly Mistake? Standard Lithium Nearing Penny-Stock Territory? Power Metallic Mines Receives Buy Rating!

Power Metallic Mines: World-class copper project takes shape

The copper price has held up well amid the recent capital market turbulence. On the London Metal Exchange (LME), a tonne of the industrial metal cost around USD 14,450 on Friday. Demand for the industrial metal is rising, while supply can only expand slowly. Power Metallic Mines is set to benefit. The Canadian explorer is developing a multi-metal project with high-grade copper deposits in Québec. Analysts at GBC Research recommend a Buy, with a price target of CAD 3.00 (EUR 1.86). The shares are currently trading at approximately EUR 0.53.

In the latest interview with the International Investment Forum (IIF), CEO Terry Lynch explains progress and next steps on the path to potential production. The focus is on the resource estimate for the high-grade Lion Zone. In addition, further drilling at a vertical depth of almost 800 m has led the company to discover a 5.7 m interval grading 14% copper equivalent (CuEq). Lynch expects that mining could initially begin as an open-pit operation. Underground mining is only to be added after several years. Alongside further exploration, the company is working on a preliminary economic assessment (PEA). 

Lynch also discusses metallurgical tests in which sulphur-rich ore from the Lion Zone is combined with nickel ore from the Nisk deposit. This could improve metal recovery and boost the project's economic viability. Power Metallic is also using so-called muon technology in its further exploration. It could help detect previously unknown connections between ore bodies and identify additional drilling targets.

Lynch also discusses international exploration activities. These include Chilean Metals' exploration programme. It has been listed independently on the TSX Venture Exchange since 2026. Power Metallic continues to hold 50% of the shares. Chilean Metals owns the Golden Ivan gold and copper project in British Columbia, Canada, as well as five exploration projects in northern Chile. The spin-off allows Power Metallic to focus on developing the Nisk project, while Chilean Metals advances the other exploration areas independently. Power Metallic also owns a project in Saudi Arabia.

The full interview:

Standard Lithium soon a penny stock?

While the copper price remains high, supporting Power Metallic's shares, the picture for lithium and Standard Lithium is very different. The price of the battery raw material has slumped more than 20% in October, and Standard Lithium's shares are approaching penny-stock levels.

Even the positive preliminary economic assessment (PEA) for the Franklin project in the US state of Texas, published jointly with partner Equinor, has done nothing to change the negative trend. According to the PEA, the project could produce up to 70,000 tonnes of battery-grade lithium carbonate annually. Over the assumed 20-year operating life, this results in total production of around 1.29 million tonnes. The pre-tax net present value (NPV8) is USD 5.9 billion, and the internal rate of return (IRR) is 25.7%. The payback period is stated as three years. Average operating production costs are expected to be USD 4,226 per tonne. The project area has expanded by 37% from the initial resource estimate to around 44,500 hectares. With an average of 515 milligrams of lithium per litre, the brine has comparatively high lithium concentrations. Production could start in the early 2030s.

Standard Lithium and Equinor now plan to move the Franklin project into the next development phase and prepare a preliminary feasibility study (PFS). Further tests on direct lithium extraction (DLE) are to be carried out in parallel. Standard Lithium can draw on experience from its demonstration plant and the South-West Arkansas project. In addition, the company is examining the economic use of other raw materials. The PEA thus considers a scenario with associated bromine production of 50,000 tonnes annually. Potash extraction could also play a role in future. In the long term, the partners aim to produce more than 100,000 tonnes of lithium annually from several projects in Texas. Standard Lithium holds a 55% economic interest in the Franklin project.

Siemens Energy making a strategic mistake? 

Billion-dollar deal in the US energy market. GE Vernova plans to acquire the Trench Group for around USD 9 billion or just over EUR 8 billion. The seller is financial investor Triton Partners. Trench specialises in high-voltage components for power grids and benefits from rising global electricity demand. Under Triton's leadership, revenue has doubled to more than EUR 1 billion. The order backlog, including framework agreements, stands at around USD 5 billion. GE Vernova already expects revenue of around USD 1.9 billion and an adjusted EBITDA margin of 36% for 2028. With the acquisition, GE Vernova aims to significantly expand its power grid infrastructure business.

The billion-dollar deal is likely to cause some annoyance at Siemens Energy. After all, Trench still belonged to the German energy technology group in 2023. At the time, Siemens Energy sold the company to Triton for hundreds of millions. Just three years later, Trench is worth many times as much. Admittedly, the financial investor has invested heavily in the company and expanded the business through acquisitions. Nevertheless, the question remains whether Siemens Energy underestimated the high-voltage specialist's potential at the time. After all, the group itself is now benefiting from the worldwide expansion of power grids. In retrospect, the sale can likely be described as a costly strategic mistake.

Conclusion

GE Vernova's acquisition is unlikely to affect Siemens Energy's current business. Nevertheless, the purchase price is likely to leave the DAX-listed group disappointed. At Power Metallic, several factors point to a potential share price increase, according to GBC analysts. Copper prices remain strong, and the market is expected to continue benefiting from robust demand. Power Metallic's share price does not yet appear to fully reflect the positive resource estimate. By contrast, buying shares in Standard Lithium is not compelling. Investors are still waiting for the final investment decision on the strategically important South-West Arkansas project.