Max Power Mining Stock Cools Off After Record Run as Market Awaits Commercial Proof from Saskatchewan Hydrogen Project

The speculative charge that lifted Max Power Mining shares more than 800% over twelve months has run into a wall of profit-taking, leaving the stock down sharply as the company’s flagship hydrogen project faces its most consequential test yet. With the Lawson update expected during the week of 18 May, investors are now demanding hard numbers to justify the tripled-digit gains.

Since the start of 2024, the shares had surged over 216% before the recent slide accelerated. On Thursday the stock closed at €1.23, a single-day loss of 8.74% and a weekly decline of 16.08%. The price remains well above both its 50-day moving average (by 28.38%) and its 200-day line (by 146.51%), but the relative strength index has fallen to 33.3, signalling a clear cooling from the prior euphoria. The retreat follows a 52-week high of €1.63, a level that now looks distant.

The sell-off is not occurring in a vacuum. On 15 May, Max Power inked a memorandum of understanding with the city of Moose Jaw that aims to coordinate municipal infrastructure with the company’s commercialisation plans for natural hydrogen. The Moose Jaw pact fits into a broader push to turn the Regina-Moose Jaw Industrial Corridor into a clean-energy hub — a move that gains credibility from the nearby 1.7 billion Canadian dollar artificial-intelligence data centre being built by Bell Canada. Yet without a definitive resource model, such framework agreements remain aspirational.

Eric Sprott, the veteran resource investor, appears to be betting on substance over style. On 13 May he raised his stake to 18,848,979 shares, representing 12.8% of the company on an undiluted basis. His increased exposure provides a stamp of institutional confidence that is rare for an early-stage hydrogen play, but it does not replace the need for operational deliverables. The company has also appointed Tony Van Burgsteden as chief financial officer, a move that signals a shift from pure exploration toward a faster path to market.

Should investors sell immediately? Or is it worth buying Max Power Mining?

On the exploration front, the picture is becoming more layered. The Bracken well, drilled to 2,600 metres, encountered a gas mixture containing both helium and hydrogen, with helium grades reaching 8.7% — high enough to represent a valuable by-product stream. Flow testing is slated to begin after the spring thaw in the second quarter. Meanwhile, Max Power has engaged Calgary-based consultancy GLJ to carry out a resource modelling and commercial assessment of the 28-square-kilometre Lawson structure, which the company calls Canada’s first deep-drilling-confirmed natural hydrogen system. Seismic data has already expanded the perceived size of the system.

The next trigger is the upcoming update, which is expected to cover resource modelling, development potential and the next steps in the drilling programme. A confirmation well at the apex of the Lawson structure is planned for the first half of 2026, aimed at testing commercial flow rates. Funding for that programme is already in place, thanks to a 20.5 million Canadian dollar capital raising. The company also holds roughly 1.3 million acres of prospective land in Saskatchewan, and neighbour Makenita Resources recently doubled its adjacent leasehold to more than 51,000 acres, underscoring regional momentum.

For now, the market is waiting to see whether Max Power can translate geological promise into economically viable flow rates. The helium upside, the Sprott vote of confidence and the infrastructure alignment with Moose Jaw all point in a positive direction, but the stock’s volatility suggests that the next leg of the rally — or the next leg down — will be decided by the contents of that May update.