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Bullboard - Stock Discussion Forum Globex Mining Enterprises Inc. T.GMX

Alternate Symbol(s):  GLBXF

Globex Mining Enterprises Inc. is a Canada-based company, which is focused exploration and development property bank which operates under the project generator business model. The Company's mineral portfolio consists of exploration, development and royalty properties which contain base metals (copper, nickel, zinc, lead), precious metals (gold, silver, platinum, palladium), specialty metals and... see more

TSX:GMX - Post Discussion

Globex Mining Enterprises Inc. > Mini Article on Globex, Safety and Leverage for Super Cycle
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Post by Geodan2 on Apr 06, 2022 5:18pm

Mini Article on Globex, Safety and Leverage for Super Cycle

I have been buying Globex GLBXF for a while, started in .90s and more in 1.00-1.05 area. Have been awaiting PQEFF tender to complete to put more it in. Well GLBXF did not wait around it is now $1.29. Fortunately have a lot, but wanted more.


They are a used mine/claim wheeler dealer. 100s of mining properties and dozens of royalties yet at a dirt cheap valuation.

Like GoldSpot they can not lose, either make money just selling claims, or if a customer hits a rich deposit Globex then gets a lot more cash and GLBX gets a royalty on it too. Big royalties, usually 3% Gross Metal not more normal 1% NSR, so no matter what type of metal it is they get paid. They started with practically nothing. Jack Stoch has run it from beginning.

Now for the first time GLBXF has a bundle of cash. $24 million last looked, and even after 30% gain the mkt cap is only $70 million. No debt and they tout how they have avoided dilution for many years. He wants to go big now that has cash.

EV/EBITDA of 2.9 and PE under 5, but check this out. UncleStock says CROIC is 627% and ROCE is 2,940% maybe the highest combo of any stock in the world. It is a fantastic business model. It has taken decades to build it up to this point where the payback comes. In video below Jack explains Globex.

Was keeping quiet to get money to buy more but being it is taking off with new highs now, decided to share it. One more thing, they do so many deals and have so many properties being drilled, that they are a constant source of real news.

https://www.youtube.com/watch?v=i_bR1xCvTuw

Globex Mining (GMX): Jack Stoch


OK on a article on Seeking Alpha that has naturally transformed into a discussion board with 7,000 comments and about 66,000 views  
     https://seekingalpha.com/instablog/535947-darp-research/5426596-rnc-minerals-karora-amazing-turnaround-can-10-bag-from-interview-ceo-huet?v=1649275662#comment-91995389   

Made this comment in response to another       

Yes big part of why love Globex is the commodity super cycle we appear to have started and is due now on the 100 year chart.
 
1. In super cycles everything he has becomes way more valuable, multiples more so.  Many of their deposits are on the edge, say  AISC 10% below current price of gold or whatever mineral.  In real dollars if gold goes up 30% (feasible to likely) all of sudden it has 40% AISC margin like a $1100 AISC mine today (maybe the median AISC today), so 4 times more margin is not worth 4 times more, more like 10X more.  The 50 baggers Rick rule talks about in last two cycles happen because of this. Natural perceived profit leverage from commodities going up.
 
2. Builds and Royalties. The really big wins are when like GoldSpot's New Found Gold drilled a rich vein, think it went up 30 times, and GoldSpot had part of that action so it went up over 10 times.  Same here, Globex does not get as much stock as GoldSpot but it does not have to pay for it. But Globex gets big royalties 3% GMR, far more than GoldSpot.  If New Found Gold had bot land from GLBXF yikes, that alone may have 10 bagged GLBXF. In Super Cycle, that is when mines get built like crazy, royalties happen and mining claims go way up in value and volume goes up, like homes in USA in the last few months. All of this is fantastic for Globex.
 
3. News flow is excellent now, it will go on steroids in Super Cycle.  Drilling will go way up as will deals.
 
4. Globex is a very safe and super leveraged play on commodities. As they say they have over half of the elements there are, on their lands. So whether gold, silver, copper, talc, feldspar, etc., whatever is hot will help Globex.
 
5, Obviously honest track record. Maybe the most anti dilution record there is out there.  The operation has been bootstrapped which is hard to do. Now it has a lot of cash and is one of the biggest owners of mining lands in Canada.
 
Cheers
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