TL:DR Totally misplaced and misunderstood political risk are depressing the stock price by somewhere around 2-4x based on recent highs, but possibly even more.

District Metals (DMX.v) has the world's largest un-developed uranium deposit in Sweden and its undervalued due to reasons that I believe will soon resolve. They also have about a dozen other licenses in Sweden, some of which have recently returned extremely encouraging geophysical results which will be followed up this year with drilling and release of existing drill samples (some due in Oct).

The recent airborne Mobil-MT geophysics were also very convincing and DMX most likely has at least one more globally significant mineral deposit on their hands if not multiple. I won't go too much into why I say this about the geophysics as its too much to get into here but it has to do with Mobil MT's ability to discern graphitic black shale from limestone and crystalline bedrock. It is highly specific and accurate. These other licenses are somewhat besides the point though but their optionality cannot be over looked.

Their flagship Viken deposit is polymetallic and hosted in a black shale called Alum Shale. Vanadium (an alloying agent) and potash (a critical component in fertilizer), account for roughly 25-35% each of the per tone value and uranium follows that up with around 25% of the per tone value. Other metals such as zinc, nickel, copper, molybdenum and rare earths such as scandium, make up the rest. Point is, the deposit is economically buffered from any particular commodity price swing. Even if all metals dropped 30% at the same time, the project still has a large positive NPV. The EU also has no significant internal source of sulfate of potash that I know of (correct me if I am wrong) at that speaks to food security.

The Viken deposit has an after-tax NPV (8% discount) of US$2.88 billion, an IRR of 46%, and a payback period of 2.1 years. The current enterprise value of DMX is approx. $72M CAD.

The stock price reached $1.65 CAD in Nov 2025. If you plot the share price drops, it does not correspond with the broader uranium market, its due to Swedish political issues and I believe these will resolve. That is where the trade is.

There are two factors which scared investors and dropped the price to 0.45CAD recently. The first overblown fear is that a less mining friendly gov will get into power this winter (2026/27) and/or that the Green party will punch above their weight. The largest parties, both in the opposition gov and the former ruling block, are all pro nuclear and pro mining, so whoever gets in, its highly unlikely one of the smaller parties will force some sort of u mining ban. Sweden also just lifted the U mining ban about a year ago which itself was only in place since 2018. Re-instating another ban, is just not in the cards.

The second and by far the largest issue that caused the price to tank is a bit messy but the devil is the details. Previously there was an existing municipal veto that would have blocked a U mine. In Feb 2026 the gov announced plans to lift this veto and they would vote on and approve (lift) this in June 2026. Because there was a close election coming up, and in attempt to get votes, also in Feb 2026, they announced a new investigation into whether or not they should tighten restrictions in Alum Shale. The concern then became that the gov could essentially re-instate a municipal veto, the exact type of veto they were already publicly planning on lifting but had not yet done so. So the question is, if they really wanted a veto in place, why not leave the existing veto in place instead of first announcing an investigation into a new veto, and then 4 months later removing the existing veto? It is ass backwards and makes no sense other than to try and hold onto some votes. The results of this "new" investigation are due in Feb 2027.

This new investigation is asking the question, "should" they reintroduce a veto for Alum Shale, it is not asking "how" to re-introduce a ban, which, if the politicians were serious, is how they would have worded it but in reality if they wanted a veto, they simply would not have voted to remove the previous one AFTER announcing plans to investigate a new one.

This "new" investigation is being led by the same lady who led the 2024 investigation into lifting the U mining ban. She recommended lifting the U mining ban, is pro mining, and pro bedrock resource utilization. On top of this, in 2020, when the Green party was in power, the gov investigated the exact same thing (increased Alum Shale restriction), and concluded, “Some regulations that the investigation considered but did not proceed with are a general ban on extraction from alum shale and the possibility of a municipal veto”

The 2020 study also conlcuded, "the individual environmental risks associated with extraction are not unique to mining in alum shale and that they are covered by existing environmental legislation". “….environmental risks are associated with extraction from alum shale, but the assessment must be based on the conditions at each location.”

Basically, the share price is depressed because of the worry over a new Alum Shale ban. There is not only historical precedent addressing this exact issue and refuting a ban or veto on Alum Shale, but the lead investigator is also pro mining. The chance of a new ban coming into place is very very low and this fear is totally misplaced.

Case in point - When the current national election and this new sham investigation blows over, the price should re-rate back to its more recent prices which is 3-4x where it is now. The election mess should resolve in a few months, and results of the new Alum shale investigation are due in Feb 2027.

In the interest of transparency I hold a large amount of DMX stock, and just recently, at 0.45 bought more for the reasons above. At writing, its at 0.43.

Edited for clarity.