Power Metal Resources reports total full-year profit of £3.2m

(Sharecast News) - Power Metal Resources reported a total comprehensive profit of £3.2m for 2025 on Tuesday, as the exploration investor said disposals and portfolio progress had strengthened its balance sheet and validated its project incubator model.

The AIM-traded company said total comprehensive profit for the year ended 31 December was £3.2m, compared with £4.2m for the 15-month period ended 31 December 2024.

Pre-non-controlling interest total equity stood at £26m at year-end, up from £22m, while cash rose to £5.68m from £0.45m.

Revenue was £76,000, down from £200,000, while the group recorded fair value gains through profit or loss of £8.1m, compared with £8.9m in the prior period.

Profit before tax was £3.2m, and basic earnings per share were 3.05p, down from 4.06p.

Power Metal said the year had included significant value crystallisation, most notably the sale of its remaining stake in Guardian Metal Resources in August for £13.6m before costs.

Together with a previous partial disposal, the company said it had received £22.8m before costs from the investment, representing an 11.8-times return on its original £1.9m investment.

The company said progress had been made across its uranium-focused joint venture with UCAM, Fermi Exploration, which holds Power Metal's uranium licence portfolio.

Exploration work during the year included the identification of uranium targets at Tait Hill, Fortin River and Reitenbach, drilling at Drake Lake-Silas and Perch River, and preparation for drilling at Badger Lake and East Hawkrock.

In the Arabian Shield, Power Metal said its Power Arabia subsidiary had expanded its position in Saudi Arabia and Oman.

At Block 8 in Oman, the company reached its full 12.5% earn-in stake by year-end and completed a maiden reconnaissance diamond drilling programme, with intercepts including 1.04% copper over 1.5 metres and 0.35% copper over four metres at the Al Mansur prospect.

Power Metal also achieved a 20% holding in the Balthaga project in Saudi Arabia after completing the required $350,000 expenditure, while discussions with AMAK over the Qatan exploration licence did not progress to a binding agreement.

The group said its 75%-owned subsidiary GSA Environmental had advanced licensing discussions for metals extraction technologies, including projects involving fly ash and phosphogypsum waste streams in Saudi Arabia, as well as potential industrial waste remediation opportunities in Europe and the UK.

During the year, Power Metal invested £1m for a 35% stake in Minestarters, a Dubai-based blockchain-enabled platform focused on tokenised mining exploration assets, with an option to increase its holding to up to 49%.

It also invested £4m for an 11.76% stake in Apex Royalties, giving it exposure to royalty assets across gold, tin, bauxite and tungsten.

The company said First Development Resources, in which it holds 43.44%, listed on AIM during 2025 and raised £2.3m, while Power Metal decided to cease further investment in the Haneti project in Tanzania after a technical review did not support further expenditure.

Power Metal also completed a capital reduction after shareholder and High Court approval, cancelling its share premium account, capital redemption reserve and certain deferred share capital to create distributable reserves for future corporate flexibility.

Chief executive Sean Wade said the year had provided "the most compelling evidence yet" for the group's project incubator model, pointing to the Guardian Metal disposal as a key example.

"These successful crystallisation events have enabled us to further diversify our portfolio, strengthening future revenue streams and enhancing our project pipeline," the company said.

After the year end, Power Metal announced strategic investments of $1.5m in Greyridge Exploration and $1m in Next Minerals, and bought back 2.7 million ordinary shares for a total of £392,628.

At 0833 BST, shares in Power Metal Resources were up 1.56% at 13p.

Reporting by Josh White for Sharecast.com

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