Metlen Energy & Metals Shares Bounce from Oversold Territory After Recent Lows

Metlen Energy & Metals shares (LON: MTLN) have begun to recover somewhat from recent lows, a move coinciding with its Relative Strength Index (RSI) signaling an oversold condition at 24.9. The shares remain down 14.24% compared to its initial listing price back in August 2025, indicating lingering investor concerns.

The share price movement follows a period of decline since Metlen's debut on the London Stock Exchange (LSE) on August 4, 2025. The listing, which was intended to broaden the company's international investor base, has not yet translated into sustained positive market performance. Despite the initial optimism surrounding the listing, the stock has struggled to maintain its initial value.

Recent financial results for the first half of 2025 revealed a mixed performance. While turnover increased significantly by 45% to €3.608 billion from €2.482 billion in H1 2024, EBITDA decreased to €445 million from €474 million in the same period. Net profit also saw a decline, falling to €254 million from €282 million. The company attributed the drop in profitability to a one-off impact from the M Power Projects segment; however, even with normalization, the underlying figures suggest some headwinds.

Metlen has been actively pursuing strategic initiatives to bolster its operations. A €295.5 million investment aims to expand production capabilities in bauxite, alumina, and gallium, targeting annual production increases to approximately 2 million tonnes of bauxite and 1,265,000 tonnes of alumina.

Furthermore, long-term agreements with Rio Tinto, involving the supply of bauxite and offtake of alumina, are expected to enhance supply chain security and profitability starting in 2027. These agreements secure a substantial supply of raw materials and provide a guaranteed outlet for its alumina production.

Despite these strategic efforts, the market's response has been muted. The RSI indicating oversold conditions suggests the shares may be approaching a level where technical traders may step in, or bearish pressure may ease. However, the underlying financials, particularly the decline in profitability, continue to weigh on investor sentiment. The initial enthusiasm surrounding the listing has waned, replaced by a more cautious assessment of the company's prospects.

The recent bounce from oversold territory may signal a potential turning point for Metlen, but sustained recovery will depend on the company's ability to deliver improved financial performance and demonstrate the value of its plan.