Globex Mining (GMX:TSX) – Gold Nugget for Freedom-Loving Billionaires

Free of Wokeness and Value-Destroying ESG Nonsense

So far, most of my posts have been about corruption and politics.  This post is for my investing readers.

Summary

• Price Target: $3.45+ per share as a public company, much more if acquired.

• GMX provides portfolio mining industry exposure without its typical risks.  With inflation ramping up, exposure to commodities, especially potential gold royalties, is a good thing.

• Asymmetric Risk/Return Profile:

  • Low fundamental risk: Growing asset base¹, Super strong internal liquidity, no debt, simple and stable capital structure.²

  • From mineral property option income revenues: High return potential: 245% in share price increase, without giving any consideration to the 100+ royalty agreements in place. (Valuation computations are behind the paywall.)

  • Massive realizable off-balance sheet asset: Potential royalty agreements valued at $XXXM+ or $X per share using a Monte Carlo simulation. (The dollar valuation of GMX royalties is behind the paywall.)

• Time Horizon: 5+ years.

Financial Advisors and Wealth Managers:

• GMX has a similar return potential to junior mining companies without their fundamental risk such as share dilution.  This provides an opportunity to clean up client portfolios of other riskier allocations.

Investment Funds and Family Offices:

• Portfolio turnover of less than 25% seeking a small-cap allocation.

• Acquisition play.

Globex’s March 2024 two-page investor Fact Sheet is worth a read.

Investing in the Mining Industry

The Lassonde Curve presents an overview of the mine life cycle.  The earlier the investment in the mine life cycle, the riskier it is.  As the mine life cycle progresses, various risks are reduced, and this is how value is created.

For more information on the Lassonde Curve of the mine life cycle, I recommend reading these two posts, 5 minutes read each, and it helps understand the unique value of Globex Mining:

• Phases of Mining written by Resource Capital Funds

• The Lassonde Curve: Understanding the Mining Life Cycle, written by SmallCapInvestor

GMX Business Model: In Parallel to the Lassonde Curve

A General Business Description of Globex read from its financial statement: “Globex Mining Enterprises Inc. (“Globex” or the ‘’Corporation’’) is a North American focused exploration and development property bank which operates under the project generator business model. It seeks to create shareholder value by acquiring mineral properties, undertaking limited exploration and therefore readying them for optioning, joint venturing, or outright sale. Globex's current mineral portfolio consists of approximately 232 early to mid-stage exploration, development and royalty properties which contain Base Metals (copper, nickel, zinc, lead), Precious Metals (gold, silver, platinum, palladium), Specialty Metals and Minerals (manganese, vanadium, titanium dioxide, iron, molybdenum, lithium, cobalt, scandium, antimony, rare earths and associated elements) and Industrial Minerals (mica, silica, potassic feldspar, pyrophyllite, kaolin, dolomite as well as talc and magnesite).”³