Oracle Power PLC secures strategic partnership for Northern Zone Gold Project

Oracle Power PLC (LON:ORCP), the London‑listed developer of natural resource and energy projects, has announced a landmark co‑operation agreement for its Northern Zone Gold Project, a venture located near Kalgoorlie in Western Australia. The deal, disclosed on 30 September 2025, positions Oracle Power to accelerate production on one of the region’s most promising gold assets while simultaneously unlocking new capital and operational synergies.

1. Partnership Structure and Funding

The agreement, signed with MEGA Resources, a full‑service mining contractor and WA Goldfields provider, will see MEGA fully finance the Northern Zone Gold Project’s day‑to‑day operations. Oracle Power, which holds a 20 % equity stake in the project, will receive 50 % of the profit generated, with MEGA retaining the remaining 50 %. This profit‑sharing model removes the need for upfront capital from Oracle Power, allowing the company to conserve cash while still benefiting from the project’s upside.

MEGA’s role extends beyond financing; it will supply geological and engineering services, manage regulatory approvals, and deliver hauling and logistics support. The arrangement effectively converts Oracle Power’s equity stake into a high‑margin, low‑risk revenue stream, while MEGA gains a seasoned partner for project development and execution.

2. Operational and Financial Implications

The Northern Zone Gold Project is positioned only 25 km from the industrial hub of Kalgoorlie, giving it immediate access to established mining infrastructure. With MEGA’s full funding, the project can proceed to a rapid development timetable, targeting first‑production milestones within 12–18 months. Oracle Power’s share of profits—10 % of monthly earnings earmarked for reinvestment—will finance expansion, grade control, and step‑out drilling, ensuring that the mine’s life is extended and that resource estimates are refined.

From a financial perspective, this arrangement will likely improve Oracle Power’s liquidity profile and reduce leverage. The company’s current debt‑to‑equity ratio stands at 9.98, a figure that could be alleviated through the cash flow generated by the partnership. Moreover, the 5.67 quick ratio and 3.74 current ratio indicate a solid short‑term liquidity position, which will be further strengthened by the predictable revenue stream from the Northern Zone Gold Project.

3. Market Reaction and Investor Outlook

Oracle Power shares surged 64.7 % during the Saturday trading session on 29 September, trading as high as GBX 0.03 before closing at the same level. The rally was accompanied by a 700 % increase in average daily volume, reflecting heightened investor confidence. Analysts note that the company’s 50‑day and 200‑day simple moving averages both sit at GBX 0.02, suggesting that the recent spike may represent a short‑term reversal rather than a sustained trend. Nonetheless, the partnership provides a tangible catalyst that could justify a reassessment of the stock’s valuation.

With a market capitalization of approximately £4.37 million and a P/E ratio of –280.00—indicative of the company’s pre‑profit status—Oracle Power’s future upside is largely tied to the successful execution of its gold and hydrogen projects. The Northern Zone Gold Project deal enhances the company’s asset base, improves cash flow, and reduces funding risk, thereby strengthening the case for a potential upward revision of the share price.

4. Broader Strategic Context

Oracle Power’s dual focus on gold exploration in Western Australia and green hydrogen development in Pakistan underscores a diversified growth strategy. The Northern Zone Gold Project agreement dovetails with this broader vision: it delivers a proven, low‑risk gold asset while freeing up capital for the company’s high‑growth hydrogen initiatives. This synergy positions Oracle Power as a nimble, multi‑asset developer capable of capitalizing on both traditional commodity markets and emerging energy sectors.

5. Forward‑Looking Statement

While Oracle Power’s current financials reflect the inherent volatility of a development‑stage resource company, the recent co‑operation agreement with MEGA Resources marks a significant step toward operational profitability. The partnership’s structure—full funding, profit sharing, and reinvestment—aligns Oracle Power’s interests with those of an experienced mining contractor, creating a robust framework for delivering shareholder value. As the company moves into the execution phase, market participants should monitor production timelines, cost control, and the monetization of the gold asset as key drivers of future performance.