Globex Mining Enterprises Inc. (TSX:GMX – $0.43 & OTCQX:GLBXF – $0.34 & Fra:G1MN – €0.28) is a North American focused exploration and development project generator. The Company has an exceptionally well-diversified portfolio of assets, with exposure to a wide range of commodities.
As a result of the restart of Nyrstar’s Mid Tennessee mine in May 2017, Globex anticipates receiving royalties of at least between $150,000 and $175,000 per month. This is just one of Globex’ recurring revenue sources. The past few weeks, the Company received well over $1 million in cash and shares from optionees. These funds will be used to acquire other attractive properties and to cover exploration and property maintenance costs.
The Francoeur/Arntfield property is a prime example of this strategy. Since Globex acquired it one and a half years ago, it has been significantly advanced. It now demonstrates the potential for a large tonnage low grade near surface gold deposit in additional to the more classic Abitibi higher grade underground minable deposit. We feel that Francoeur/Arntfield alone justifies Globex current market valuation.
Another recent acquisition is the Bräunsdorf silver property in Saxony, Germany. This German project not only further diversifies the Company’s portfolio of attractive properties, but due to the initial information that Globex obtained, it’s clear that it could become a promising endeavor.
Aside from the strong upside potential of some of the projects in the portfolio, Globex’s top strengths are the high equity ownership of its management, its ability to maintain a tight capital structure, and its outstanding knowledge of the geology so that it knows where to look for more highly prospective properties.
Based on these calculations, we reiterate our buy recommendation for Globex Mining Enterprises with a price target of $1.19, which is 176% above today’s stock price.
|Download the third quarter 2017 Globex Mining Company Report.|
|Smallcaps.us Advice: Buy||Price Target: $1.19||Latest Company Report (pdf)|
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