Anyone knows why this stock is so badly beaten? most Ni miners has at least recovered a proportion of their highs but GME has today passed its all time low for the last 12 months. Its now the worst performing nickel stock in whole of ASX! I realised that they need an injection of capital for it to develope their HL, but everything is going as planned and with results of the MOU finalised and new drilling of nickel and now gold commencing in march it should at least hold its ground.
Directors brought a few million shares a couple of months ago at 50, so i cannot see the reason for its drop today.
They are going to extract 130,000 tonnes @1.5% Ni for their feasibility studies meaning that 1950 tonnes will be nickel, taking into account of 75% recovery rate that means 1462 tonees is revenue. 1462 tonnes has a market value of $43,875k (1462 * $30000 (AUD)). Lets say that the profit margin is only 25% that means that they are making a Net Profit of $10M or a PE of less than 8.
Of course if they can source finance for their Heap Leach the PE will be significantly less.
MRE is also doing HL and is currently planning a $1.3 billion dollar fund in hope of expanding their nickel output, its just common sense that GME is a suitable partner/target.
Lets face it, GME needs a JV backing or a T/O otherwise they will never produce, lets hope the new CEO is a little more shrewd than the previous one in terms of finding a new partner.
GL All and i hope this will only get better.
GME Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
