Why Globex Mining Enterprises Has Vast Upside Potential In 2019
Globex Mining Enterprises Inc. (CA: GMX – $0.34 & US: GLBXF – $0.24 & 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 166 properties and/or property royalties.
Diversification is further achieved through a portfolio of approximately 55 royalty agreements held by the Company. One such royalty has already generated CDN $1.83 million in revenue for Globex in 2018. This is in addition to option revenue which combined with royalty revenue generated almost $3 million in 2018.
Also in 2019, the Company expects to continue receiving between $100,000 and $150,000 in royalties from Nyrstar’s Mid Tennessee mine. In addition, Globex has a number of option agreements in place which are estimated to potentially generate gross option payments in excess of $1.0 million in 2019.
With its large high-quality portfolio of resource property holdings, the active exploration programs underway, and the current income stream from ownership of royalties, Globex is providing shareholders with a dynamic platform for value creation.
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.
We reiterate our buy recommendation for Globex Mining Enterprises with a price target of $1.10, which is 223% above today’s stock price.
Download the fourth quarter 2018 Globex Mining Company Report.
| Smallcaps.us Advice: Buy | Price Target: $2.87 | Latest Company Report (pdf) |
| For important disclosures, please read our disclaimer. | ||
Comprehensive report, awesome ! Especially difficult with Globex, since there are so many projects advancing at the same time. One Project I missed: Sayona´s Authier Lithium project. It had a recent blowback. But if it would be realized it would be equally tranformal for Globex.
Hi Alf,
Thank you for your kind words. Globex hasn’t issued any news on the Authier project in a couple of years, although there has been nice progress. So it would certainly be good to do an update on that. Thank you letting us know.
Cheers, John