Independant Investment Research have initiated coverage on Globe Metals & Mining Ltd- Niobium (ASX: GBE). Globe represents an Australian-listed, African-focused resource company. Its major project is the Kanyika Niobium Project in Malawi, where it plans to produce niobium and tantalum products for high-strength, low-alloy steel and electronic applications, including very fast charging lithium-ion batteries. The Kanyika Niobium project represents a well-studied project that Globe has worked on for over a decade.
Our valuation of the company as a whole, based on assumed prices of US$42/kg niobium pentoxide and US$350/kg tantalum pentoxide, together with an exchange rate of AUD/USD 0.66, is estimated to be A$444M as at June 2024 – or A$0.657/sh before dilution. Our valuation range after estimated dilution is A$0.15/sh to A$0.362/sh. The lower end of the range assumes the raising of A$100M at 3cps, and the upper end assumes an issue at 14cps. Any funding from non equity sources would reduce dilution.
2024 is likely to be a watershed year for the project and the news flow will be considerable. A Revised Preliminary Feasibility Study with updated costings and including results of detailed design of long lead items is planned for the March 2024 quarter. Product samples are currently being sent to potential off-take partners, which could lead to the announcement of sales agreements and possibly funding support (i.e. customers providing equity, making prepayments against future sales, and/or providing debt).
Independant Investment Research have initiated coverage on Globe Metals & Mining Ltd- Niobium (ASX: GBE).
https://www.linkedin.com/posts/independent-investment-research_globe-metals…