Globex Mining has 262 Royalties, Options and Available Properties with a Tight Share Structure

Key Concepts

• Generative Royalty Company: A company that stakes mineral properties, then auctions or sells them, retaining royalties on the back end.
• Royalties: A percentage of revenue or profit from a mining operation that a company retains when it sells or options a property.
• Option Agreements: Agreements where a company can earn an interest in a property by meeting certain work commitments or payments.
• Feasibility Study: A comprehensive study to assess the technical and economic viability of a mining project.
• 43-101 Resources: Mineral resources reported in accordance with National Instrument 43-101, a standard for disclosure of mineral projects in Canada.
• Commodities: Raw materials or primary agricultural products that can be bought and sold, such as gold, silver, copper, lithium, etc.
• Diversification: Spreading investments across different assets, commodities, and geographies to reduce risk.
• Share Structure: The composition of a company's stock, including shares outstanding, options, and warrants.

Globex Mining Enterprises: Overview and Business Model

Globex Mining Enterprises is described as a "generative royalty company." Their core business model involves staking mineral properties, and then either auctioning them or selling them to other companies. In return for these transactions, Globex retains royalties on the back end of the projects. This strategy allows them to benefit from the exploration and development activities undertaken by their partners.

• Portfolio Size: Globex currently holds approximately 262 assets.
  • 107 of these assets are royalties.
  • About 8 properties are currently under option to other companies.
• Revenue Streams: The company benefits from two primary sources:
  • Royalties from properties where other companies are spending money on exploration and development.
  • Payments from option partners who are actively working on Globex's properties.

Diversification Strategy

Globex emphasizes its diversification across various commodities, aiming to mitigate risk and capitalize on different market trends.

• Commodity Focus:
  • Over half of their portfolio is in precious metals (gold and silver).
  • They also hold assets in base metals (copper, lead, zinc, nickel).
  • Specialty minerals such as lithium are included.
  • Materials used in building, like talc and magnesium, are also part of their holdings.
  • The company states they are "across the periodic table."

Key Projects and Future Prospects

Mount Sorier: This is highlighted as a significant upcoming asset expected to have a major impact on Globex's revenue stream.

• Asset Type: An iron deposit.
• Classification: Described as "world-class."
• Location: Situated in the Chibougamau region of Quebec, Canada.
• Development Stage: A feasibility study is anticipated in the first quarter of the upcoming year. This study will provide investors with a clearer understanding of the project's potential value and annual revenue generation.
• Globex's Interest: Globex holds a 1% GMR (Gross Metal Royalty) on this project.

Geographic Diversification

Globex's projects are spread across different regions, with a focus on politically stable jurisdictions.

• Primary Locations:
  • Canada (significant holdings in Quebec and Ontario).
  • United States (Nevada, Washington state).
• International Presence:
  • A silver royalty in the Saxony region of Germany.
  • Efforts to develop a project in Portugal.
  • A recent deal to support a project in Chile.
• Geographic Strategy: The company aims to be diversified geographically but tends to focus on "very safe places."

Project Acquisition Philosophy

Globex does not typically acquire purely grassroots projects. Their strategy is to acquire properties that already show promise.

• Acquisition Criteria:
  • Properties often have a historic resource.
  • They may have a significant drill hole hit.
  • Many projects have historic production or historic resources.
  • They look for projects with existing 43-101 resources.
• Goal: To acquire projects with existing potential that can be advanced through option agreements and development.

Future Outlook and Investor Expectations

Investors can anticipate several key developments from Globex Mining Enterprises.

• Partnership Growth: The company expects to enter into more option agreements and sell more properties to new companies, thereby increasing the number of partners actively developing their assets.
• Internal Drilling: Globex plans to conduct its own drilling on a number of its projects.
• Financial Strength:
  • The company has approximately $38 million in cash and equities.
  • They do not need to issue equity and have not done so since 2019.
• Share Structure:
  • Low share count: 56 million shares outstanding.
  • No warrants.
  • Options exist.
• Liquidity: Globex is listed on multiple exchanges, including the Toronto Stock Exchange, Frankfurt Stock Exchange, other German exchanges, and OTCQX, which contributes to good liquidity.
• Shareholder Structure: Jack Stock, the CEO and Executive Chairman, is the largest shareholder, holding around 14% of the company.

Conclusion

Globex Mining Enterprises operates as a generative royalty company with a diversified portfolio of mineral assets across various commodities and geographies. Their strategy focuses on acquiring properties with existing potential, securing option agreements with development partners, and retaining royalties. With a strong financial position, a low share count, and a clear pipeline of projects like Mount Sorier, Globex aims to advance its assets efficiently and deliver value to its shareholders through the development activities of its partners.