Power Metallic Mines Poised to Benefit from a Potential 50% Copper Rally
Copper remains one of the most exciting themes in the commodities market. Although the price has retreated somewhat from its recent record high of just under USD 14,900 per metric ton, it remains at a historically high level. A bullish comment from Deutsche Bank caused a stir last week. The bank’s metals strategist believes a 50% rally is possible by the second quarter of 2027. His price target is around USD 22,000 per metric ton. The backdrop to this is the growing scarcity of freely available supplies. In particular, the high concentration of inventories in the US and China could make the market more vulnerable to further price spikes.
On the supply side, too, there are good reasons for rising copper prices. In China, refined copper production is expected to grow more slowly this year than it has in decades. At the same time, the tight supply of copper concentrate is putting additional pressure on smelters. Added to this is a potential strike risk at Escondida in Chile—the world’s largest copper mine. This creates a situation where structurally rising demand meets limited supply growth.
A new copper rally could be exactly the catalyst needed to break the sideways trend of Power Metallic Mines’ stock. The company has made significant operational progress in recent months. With the resource estimate for the Lion Zone, it is becoming increasingly clear that the Nisk project in Canada has world-class potential. This resource comprises 4.75 million metric tons with approximately 3.9% copper equivalent. About 87% of this has already been classified as “Indicated”. The deposit also remains open in multiple directions. CEO Terry Lynch recently emphasized that the company could begin with a low-cost open-pit mine, as about 59% of the resource is located near surface.
According to Lynch, approximately 20,000 additional drilling metres have been completed since the resource estimate. Another 15,000 m are expected to be added by the end of November. While the current resource accounts only for drilling to a depth of 610 m, massive sulfide mineralization has since been encountered at a vertical depth of approximately 900 m. The ultimate target is approximately 1,200 m. At the same time, Power Metallic is aiming to complete a PEA in the first half of 2027 and then move directly toward a feasibility study.
Analysts also see higher prices for Power Metallic’s stock as justified. Hannan & Partners estimates the fair value at CAD 2.70. GBC Research believes the stock could even rise to CAD 3 in the base case scenario. Power Metallic’s stock is currently trading at CAD 1.13.
Investors can look forward to an exciting update on Wednesday, October 7. Terry Lynch will present at the International Investment Forum (IIF) and answer any questions live. Registration for the event is free.
Nordex: Forecast Increase Canceled?
Nordex shares have been consolidating since early July. An upward revision of the annual forecast could spark a new rally. But anyone speculating on that might be disappointed. At least that is the view of Deutsche Bank. Analysts point to project delays. However, they see no reason to panic. They recommend Nordex shares with a “Buy” rating and estimate its fair value at EUR 59. The stock is currently trading just above EUR 38.
The news flow for the wind energy specialist remains positive. Last week, a contract from Austria was reported. On behalf of WEB Windenergie, the TecDAX-listed company will carry out a repowering project in Lower Austria with a total capacity of 56 MW. Replacing existing turbines is expected to significantly increase the site’s efficiency. Commissioning is scheduled for 2028. Nordex will supply and install 8 N175/6.X wind turbines, each with a capacity of 7 MW. The contract also includes a 25-year premium service agreement. This marks the first installation of the N175/6.X in Austria and is also the company’s largest single project in the country to date.
Nordex had previously reported sales success in Southern Europe. Orders totaling 175 MW were secured in France, Portugal and Spain. In total, the wind turbine manufacturer will supply and install 34 turbines of various types. The contracts are supplemented by multi-year service agreements. Installation and commissioning of the projects are scheduled for 2027 and 2028.
Verbio: Analysts Recommend Buying
Verbio’s stock is currently failing to benefit from high gasoline prices. Over the past six months, the shares have lost around 40% of their value. Operationally, however, the company is performing well.
Based on the 2025/26 figures, NuWays sees Verbio clearly on the path to recovery and reaffirms its “Buy” recommendation with a price target of EUR 41 (current price: EUR 26.56). In the fourth quarter, EBITDA rose to EUR 88.2 million following a loss of EUR 8.2 million in the same period a year earlier. For the full year, Verbio reported EUR 193.9 million. The main drivers were significantly higher ethanol margins, increased prices for GHG allowances, and improved capacity utilization in the US. The biodiesel business also performed well. For 2026/27, management expects EBITDA of EUR 210 to 250 million. According to NuWays, this is in line with the midpoint of its own estimates.
NuWays views the significant improvement in cash flow positively. Operating cash flow stood at EUR 165 million, and free cash flow at EUR 78 million, reducing net financial debt from EUR 164 million to EUR 92 million. Against this backdrop, the company will pay a dividend of EUR 0.20 per share for the first time in several years. NuWays sees additional drivers for share price growth in the continued monetization of accumulated GHG allowances, the ramp-up of US operations, renewable chemicals, and potential revenues from CO₂ savings.
NuWays expects Verbio’s revenue and profits to rise in the coming years. Revenue is projected to increase from EUR 1.895 billion in fiscal year 2026/27 to EUR 2.056 billion in 2027/28 and EUR 2.136 billion in 2028/29. EBITDA is expected to grow even more dynamically. NuWays forecasts an increase from EUR 230.7 million to EUR 310.7 million and ultimately to EUR 323.9 million. Analysts expect earnings per share of EUR 1.60 for 2026/27, followed by EUR 2.59 and EUR 2.72.
While investors can look forward to an exciting CEO update from Power Metallic Mines at the IIF conference on Wednesday, Thursday will be the key day for Verbio. At the Capital Markets Day, investors expect news regarding developments in the US.
There are good reasons why Power Metallic Mines’ stock could trade higher. A rally in copper prices could become a key catalyst, and analysts see significantly more upside for the shares. Verbio’s stock also appears ready for a rally. At Nordex, meanwhile, the consolidation continues.
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