Globex Mining Enterprises Inc (TSX: GMX) Makes Money in Precious Metal, Base Metal and Industrial Mineral Based North American Projects
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By Dr. Allen Alper
on 2/5/2014
Jack Stoch, the President and CEO of Globex Mining (TSX: GMX) at the Cambridge House Resource Investment Conference in Vancouver
Globex Mining (TSX: GMX Frankfurt: G1M, OTCQX: GLBXF), a company with a wide variety of assets covering more than 110 projects, is now focused on developing a magnesia and talc project that offers opportunities for high demand industrial products. Jack Stoch, the President and CEO of the company took time to speak with Metals News at the recently held Cambridge House Investment Conference in Vancouver.
Said Stoch, “Globex is a Toronto Stock Exchange listed company. We have 33 million shares out and we are trading at a ridiculously low price of $0.34 when we have been as high as almost $8.00. We have over 110 projects of which 40 are projects that have historical or NI 43-101 resources. We have 30 royalties, one of which is producing (at zinc prices over 90 cents per pound) about $75,000 a month from a zinc mine in Tennessee.” Some of these royalties are subject to price fluctuations, such as their zinc royalty. Said Stoch, “We have a stake in the zinc price. When the zinc price goes up our value goes up and our payment goes up.”
The company is very stable, with financial reserves and works in only mining-friendly areas. Said Stoch, “We have no debt and we only work in North America, particularly eastern Canada, Washington, Nevada and Tennessee. We are diversified. We have 60 gold projects and 25 base mineral projects and a whole bunch of industrial metals projects, including graphite, rare earths, talc, magnesium, manganese, and mica.” The company does not have a primary focus in a particular metal as they are looking for opportunities to profit in the market. Said Stoch, “We’ll do pretty much anything that has the potential to be of economic interest and that will make money. The project that we are working on advancing as quickly as possible is a talc/magnesium project. The talc is for the plastics industry and the magnesia is for refractory brick which is used in heat proof bricks as the lining for furnaces and for something that we are exploring that is quite innovative, which is using magnesia to make wallboard.”
This new application for magnesia could potentially revolutionize construction materials. Said Stoch, “This wallboard has two advantages over gypsum wallboard, it won’t absorb water, and black mold, which is deadly, won’t grow on magnesia. One can do basements in people’s houses or areas that have flood problems and once the water is gone you don’t have to rip it all out. All you have to do is dry it and the walls are fine. The walls won’t allow the growth of the mold because the water won’t go into the walls. It has tremendous potential.”
The company has been working on forwarding this project, with the goal of bringing both talc and magnesite (the mineral) out of the ground. Stoch believes this will be a long term, very valuable project for the company and shareholders, “We have just received our mining lease from the Ontario government and we are most of the way through the permitting process and we have got almost all of the metallurgical test work completed. We have done the plant design and the mining plan. The whole company is presently valued in the market at $10 million dollars while the PEA, which is available on our website, projects that the first twenty years – and we think the project will last several hundred years – will generate $2.6 billion dollars in gross revenue and a 20% IRR. Since that report, which was dated April, 2012, we have further improved the IRR of the project.”
The production part of the project will require a significant investment. Said Stoch, “For the first phase we need $50 million dollars, the second phase would be $100 million dollars and the third would be $180 million dollars. We will do it in stages ramping up the marketing for talc first. We don’t want risk for our shareholders. It will be a mix of debt and equity. We won’t do it in Globex as a company. We will do it as a dividend new company to shareholders or as some sort of other transaction of direct benefit to shareholders. We have previously spun out an asset (Chibougamau Independent Mines inc. CBG-V) to shareholders
The type of rock located at the project is ideal for providing magnesia and talc. Said Stoch, “The rock is probably a highly altered, composed roughly of half magnesite and half talc.” The plan that the company is following is to open pit mine the rock and then separate the talc by simple flotation. Said Stoch, “We will sell the talc and intend to process the magnesite residue to produce magnesia.” The site is in the mining-friendly Timmins Ontario area and is located near a good deal of infrastructure.
Concurrently Globex is working on at least another dozen precious metal and base metal projects including the Globex managed Wood Pandora Gold project in joint venture with Osisko and Globex’s wholly owned Lac A L’eau Jaune project directly adjoining Iamgold’s Monster Lake Gold Project.
Why should investors look at Globex? Stoch said, “We clearly care about our shareholders. We invest our own money and run it like a business. After 27 years, we still only have 33 million shares issued. We’ve never done a rollback. We are diversified. When gold is down, we have copper. We have industrial metals. We do anything that has a legitimate way to make money. We have over 110 projects and we own them all. We don’t have any debt. We projects are in places with political stability. We work only in North America. We believe that many of our projects have the potential to become a mine and make money for our shareholders. There is no better bargain than when you can get a stock that has 40 properties with historical or NI 43-101 resources on them and 30 potential royalties. We have much in the way of assets and we are profit oriented. We are not here to scalp the shareholders; we are here to make money for the shareholders. I and my wife, Dianne, are the largest shareholders. We invest our own money in the company along with our shareholders. We are here to create value for our shareholders.”
http://www.globexmining.com/
Globex Mining Enterprises
Inc.
86-14th Street 86, 14e rue
Rouyn-Noranda, Quebec J9X
2J1
Canada
Telephone: 819.797.5242
Fax: 819.797.1470
info@globexmining.com
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