Globex Mining Turns Profitable in First Quarter of 2017

Globex Mining Turns Profitable in First Quarter of 2017 post image

Globex Mining Enterprises Inc. (TSX:GMX – $0.52 & OTCQX:GLBXF – $0.40 & Fra:G1MN – €0.34) 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.

In the first quarter, ended March 31, 2017, revenue totaled $480,394 which was $425,394 higher than the $55,000 reported in the comparable period in 2016. As a result of the significant increase in revenue, Globex reported a positive net income of $143,644 as compared to a loss of $130,669 in the first quarter of 2016.

During 2016, Globex successfully negotiated ten property sale/option agreements with net option income and advance royalties of $1,301,989 being recorded in the second, third and fourth quarters of the year. In addition, it had also negotiated option/sale agreements which generated solid revenue in the first quarter of 2017.

Moreover, as a result of the announcement by Nyrstar Inc. to restart mining operations at its Mid Tennessee mine, Globex anticipates to start receiving monthly metal royalties of between C$100,000 and C$120,000 per month later this year.

The heart and soul of Globex is its property portfolio, which currently consists of approximately 150 early to mid-stage exploration, development and royalty properties. Aside from the strong upside potential of some of the projects in the portfolio, we believe that Globex’ 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 $1.08, which is 108% above today’s stock price.

Download the first quarter 2017 Globex Mining Company Report. Download
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