Today I purchased another 100K of Global Metals & Mining (GBE.ASX) at 6.9c. This stock is cashed up with some $26mil in cash; and yet the company has a market capitalisation of $15million, a world-class niobium resource, banking by a Chinese state enterprise, and a number of other interesting projects. Better news still!!!!!
1. They are at a technical support level which stretches back to early 2009 - that will be a very strong support; which means that it was always going to be reached.
2. There is still some stock left at 7c - well just 40K units. Well, sorry guys. You really ought to get on my mailing list.
Niobium is a very important or strategic commodity. You might already know about the commodities that the West wants but China dominates - like rare earths, tungsten and nickel. Well, there is a government more paranoid than the USA, Japan, Korea and EU, and that's the Russians and Chinese!!! Oh, I forgot about the crazy North Korean dictator....but they don't count. So basically, this project is important to the Chinese. Would I expect a takeover? No, because they will acquire their control over the project product marketing by funding everything. Which means GBE will dilute to a passive, minor stake in the project; but this will give them a very appealing cashflow of $15-25mil per annum I suggest, and it will still retain its cash for exploring its other projects. This investment strikes me as a 'no-brainer'. Its not enough to have cash; it needs to be adding value, and here it surely is. They also have a rare earth and gold project if I'm not mistaken.
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