Metals Co.'s Dual-Project Strategy Positions it for Major Re-Rating, Analyst Says
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On February 17, 2026, Red Cloud Securities analyst Ron Stewart initiated coverage of Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) with a Buy rating and a 12-month price target of CA$2.20 per share, representing a 244% return to target from the then-current closing price of CA$0.64.

The rating reflects Stewart's view that the market has significantly undervalued GWM's two primary assets — the Clarence Stream gold-antimony project in New Brunswick and the Estrades gold-base metal project in Quebec — relative to exploration and development peers.

Recent Developments

Two catalysts preceded the initiation. On January 14, 2026, GWM announced a binding term sheet with Dowa Metals & Mining Co. Ltd., a private Japanese mining and smelting company, allowing Dowa to invest up to US$25 million in three phases to earn a 45% equity interest and incremental offtake rights in the Estrades project. Stewart characterized the agreement as an endorsement of Estrades' technical merit, noting that it allows GWM to retain majority ownership while Dowa funds advancement to a feasibility study.

One week later, on January 21, 2026, GWM released a Preliminary Economic Assessment (PEA) for Estrades evaluating both a stand-alone and toll milling development scenario, establishing an after-tax NPV at a 5% discount rate of CA$186 million for the stand-alone option and CA$212 million for the toll milling scenario, based on a contemplated 1,500 tonne-per-day underground operation running for eight years.

Clarence Stream

Clarence Stream is GWM's flagship asset, a 100%-owned project covering approximately 60,465 hectares in Charlotte County, southwestern New Brunswick. The March 2022 mineral resource estimate totals 922,000 indicated ounces of gold (12.4 million tonnes grading 2.31 g/t Au) and 1.334 million inferred ounces (15.96 million tonnes at 2.60 g/t Au), for a total mineral inventory of approximately 2.3 million gold-equivalent ounces. Open pit resources account for 75% of the total inventory and carry a grade of 2.30 g/t Au — more than twice the average open pit grade of the peer group cited in the report.

Three deposits (North, South, and Southwest) are each open in all directions, and the company has identified 12 high-priority geochemical and geophysical targets for near-term assessment. Three drill rigs were active at the time of publication, with an updated MRE anticipated for mid-2026. Metallurgical testing is also underway, with conventional cyanide leaching demonstrating gold recoveries of 89–95%, and a cyanide-plus-flotation flowsheet achieving antimony recoveries of up to 84% for higher-antimony material.

Estrades

The Estrades project, located in northwestern Quebec approximately 95 kilometres north-northeast of La Sarre, is a past-producing volcanogenic massive sulphide deposit situated on the Casa Berardi belt. The updated 2024 mineral resource estimate totals 1.75 million indicated tonnes grading 2.86 g/t Au, 5.76% Zn, 0.97% Cu, 0.48% Pb, and 94.4 g/t Ag, plus 2.68 million inferred tonnes at 1.81 g/t Au and 4.75% Zn, for a combined total mineral inventory of approximately 748,000 gold-equivalent ounces.

Under the Dowa earn-in structure, Phase 1 involves US$5 million in expenditures for a 10% stake and 50% zinc offtake; Phase 2 adds US$10 million for an additional 20% interest and 75% zinc offtake; and Phase 3 involves a further US$10 million toward a feasibility study in exchange for an additional 15% interest and 100% zinc offtake. GWM would act as project operator and receive a 6% management fee on approved expenditures. Dowa-funded exploration results from Estrades are expected in the second half of 2026.

Valuation

Stewart values GWM using an in-situ enterprise value per gold-equivalent ounce methodology, applying a base-case of US$65 per ounce — representing the median of the peer group — to the total mineral inventories of both projects. Clarence Stream is valued at CA$208 million (CA$1.62 per share) on 2.305 million gold-equivalent ounces, and Estrades at CA$68 million (CA$0.53 per share) on 748,000 gold-equivalent ounces.

After adding estimated cash of CA$15 million and deducting CA$8.5 million in projected 12-month expenditures, the total corporate net asset value is CA$282 million, or CA$2.20 per share. At the time of the report, GWM traded at an enterprise value of just US$15.60 per gold-equivalent ounce, compared to a peer group median of US$68 per ounce and average of US$136 per ounce — a discount Stewart attributes to the market's failure to appreciate the combined value of the two projects. GWM's price-to-NAV multiple of 0.29x also compares to a peer group average of 0.35x.

Upcoming Catalysts

Stewart identifies four near-term catalysts: ongoing drill assay results from Clarence Stream; ongoing metallurgical test results from Clarence Stream; an updated MRE at Clarence Stream expected in mid-2026; and initiation of Dowa-funded exploration results from Estrades expected in the second half of 2026.

Risks

Stewart highlights metal price volatility and exchange rate risk as key financial variables that could affect GWM's valuation. Technical risks include uncertainty around resource and reserve estimates, metallurgical recoveries, and capital and operating cost projections.

Financial risk is notable given that GWM generates no operating cash flow and depends on equity and debt markets to fund ongoing activities. Corporate execution risk and jurisdictional risks — including permitting, environmental considerations, and social licence — are also cited, though Canada is characterized as a low-risk mining jurisdiction.

Capital Structure and Ownership

As of February 12, 2026, GWM had approximately 128.4 million basic shares outstanding and 159.6 million fully diluted shares, reflecting 9.3 million options and 21.9 million warrants. The company held CA$15 million in cash following a CA$11.5 million LIFE offering and approximately CA$462,000 private placement closed in December 2025, and carried no debt. Institutional investors held 22.4% of shares, insiders 6.7%, hedge fund managers 5.8%, and the remainder was widely held.