Positive. Shows extensive deposit and diversity of graphite deposits. Potentially their tenement will host multiple deposits at various grades. This could allow, as drilling continues, for multiple offtake agreements. Very similar to TON in that, they too hold multiple deposits. The difference is Globe may need to be more strategic with their drilling and find some higher grade zones first to allow for the share-price to appreciate. Something TON did very well. This will bode well for shareholders and future raisings that avoid share dilution.
Graphite is by no means GBE’s only iron in the fire, but supports their multi-commodity company objectives. And with the Nobium in optimisation phase, offtakes there are a possibility, coupled with drilling to begin after the wet season on the Graphite deposit. As well as any additional projects that they bring in, they could definitely deliver shareholders with a viable company.
A another consideration is that the rights issue and convertible note provided Apollo with investment in GBE at 4.5-5.5 cents, this is higher than where the current share price is. As such, Apollo too will be seeking a return in their investment and therefore, will want (as a major shareholder) returns themselves from their investment.
As previously explained by some other posters, there cash backing alone means the company should be trading at 4cents. This means that the market hasn’t properly taken into account the value of the projects themselves into the share price.
Opportunity does exist here, but as always you must do your own research and this is purely an opinion of one trader.
GBE Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
