Strong Commodities Markets Pave Way for Solid Price Increase of Globex Mining Enterprises
Globex Mining Enterprises Inc. (CA: GMX – $0.35 & US: GLBXF – $0.26 & GER: G1MN – €0.24) 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.
The value proposition for Globex is enhanced by the strategy to build diversification amongst the holdings of the Company. This means that management is working to establish ownership of multiple properties, in different jurisdictions, and with leverage to many resources. Globex currently controls over 170 properties and/or property royalties.
Property transactions and retained royalties enable Globex to participate in the success of exploration work funded by other players. This leverage to multiple projects and ongoing exploration activity improves the prospect for value creation.
Since 2010, Globex has received royalties from Nyrstar’s Mid Tennessee mine totalling close to US$6 million, and expects to continue receiving between $75,000 and $125,000 per month in 2019.
Globex shareholders may also be encouraged that the Company is working to support the share price through participation in a 1 million share buyback program that will contribute additional market demand for common stock, while also tightening the share structure. Globex already completed a similar program last year. Both programs demonstrate the strength of the balance sheet as Globex has maintained a cash position to afford the option to pursue this strategy.
The ability to recognize opportunities and the establishment of a diverse range of projects has positioned Globex among the most stable mineral exploration microcap stocks in Canada.
We reiterate our buy recommendation for Globex Mining Enterprises with a price target of $1.07, which is 205% above today’s stock price.
Download the second quarter 2019 Globex Mining Company Report.
|Smallcaps.us Advice: Buy||Price Target: $2.87||Latest Company Report (pdf)|
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