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MetalNRG - Initiation of Coverage

MetalNRG is the previous NEX-listed ZimNRG which in 2016 was rebranded and adopted a new investing policy with greater focus on projects within the natural resources and/or energy sectors. A proven management team has adopted a really sound corporate strategy of investing in advanced stage exploration and development projects where they can use their know how to establish cash flow relatively quickly. Recent months have seen BritNRG become problematic and resolving this issue could free up capital that could be better used elsewhere. In any case, oil had always only been seen by the team as merely a stepping stone on the way towards green energy.

• Green energy joint venture with leading technology partner EQTEC

  MetalNRG is working with EQTEC developing ‘shovel-ready’ green energy infrastructure projects with the potential to deliver sustainable revenues over the long term. Deal #1 sees MNRG holding a 26.66% interest in an Italian project that is rapidly expected to become a strong dividend payer.

• Brownfield gold project in Arizona which spans three historic mines

  The Gold Ridge Project just begs attention using modern exploration techniques and the latest Au mineralisation models. With a 100% interest, MNRG is in the driving seat as there is clearly scope to joint venture the project to advance exploration and development at no cost to the company.

• Uranium price surges on green credentials

  MetalNRG can gain a 51% stake in a uranium project in Kyrgyzstan by putting in place the funding. In the past, this project had been granted a Mining Licence which looks likely of being re-instated, so the game is on.

• Financial modelling & industry metrics suggest 250% upside

  Our conservative valuation highlights the potential. We initiate coverage of MetalNRG with a target price of 1.2p and Speculative Buy stance.