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Ferroglobe PLC GSM

Ferroglobe PLC is a producer of silicon metal and silicon-based alloys, variety of industrial and consumer products. The Company operates through four segments: United States of America, Canada, France, and Spain. It is involved in quartz mining activities in Spain, the United States, Canada; and South Africa, low-ash metallurgical coal mining activities in the United States, and interests in hydroelectric power in France. It sells its products to a diverse base of customers in a varied range of industries, such as aluminum, silicone compounds used in the chemical industry, ductile iron, automotive parts, renewable energy, photovoltaic (solar) cells, electronic semiconductors, and steel. Its solutions include silicon metal, manganese alloys, ferrosilicon, foundry products, calcium silicon, silica fume, electrodes, pulverized products, silicon for advanced technologies, and other. The Company's subsidiaries include Ferroglobe Finance Company PLC, and Ferroglobe Holding Company Ltd.


NDAQ:GSM - Post by User

Bullboard Posts
Comment by dfergu7477on Jan 08, 2010 3:06pm
473 Views
Post# 16656728

RE: GSM understates value of lithium sale

RE: GSM understates value of lithium saleGood posting, tooclassy; thx for your perspective.  To your point, AMLME's stock price continues to rise today so those 500,000 shares are now worth US$660,000 ($1.32 per share, as of this writing.)  Add in the $50,000 cash component, and now the purchase price equals $710,000.  Perhaps this is why the company dropped the second tranche of the recent PP; they found some cash.

Plus, although it may be hard to value the 2% NSR, but I noticed the buyout right for AMLME to eliminate it is US$2mm.  I don't know if that's standard fare or not, but a $2 million buyout price for the NSR means that at least two very interested parties (AMLME and GSM) forsee that it could be worth that much in the future.

I know this stock has been killed to death and is still on the mat, but goodness it's cheap now.  With the updated 43-101s on MC and Tip Top, the company has virtually 350,000 43-101 ounces, to say nothing of the silver at MC.

And that silver could be worth a LOT.  In their press release on the updated 43-101s, they said that while prior operators at MC didn't assay for silver, that four GSM holes have intersected grades of 500-1500 g/t Ag.  This is BONANZA silver stuff, and not to be minimized.

In the last year, GSM has grown 43-101 gold ounces by roughly a factor of five even without considering what may be bonanza silver ore, and yet the stock remains at crushed levels.  To have all this good stuff going for them when gold and silver prices are MUCH higher, and yet sit at a fully diluted market cap of less than US$3million, amazes me.

GSM not only survived the horror of 2008 but, relatively speaking, produced company changing results, against a backdrop of precious metals price increases.  Sooner or later, IMO, the stock will reflect these results.

GLTA!
Bullboard Posts