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GBE 1.3¢

A GBE Convert

  1. tfish

    371 Posts.

    I have spent some time researching Globe and as a previous doubter towards management and their commitment. I wanted to raise some recent points I have uncovered that may be responsible for the current stagnation.
    1. Firstly, the new Government only came into power in the first half of the year and as such the time to settle into the role may take a little longer than normal.
    2. Malawi recently was subject to some fairly significant flooding through the wet season. This has led to significant efforts by the government to focus on dealing with the fall out.
    3. Thirdly, the new Government, like the previous one, may be demanding unfair taxes on the mining of the Niobium.
    4. Fourthly, the conflict of interest between the 2 Chinese entities on the board, namely Apollo & ECE. There can be clearer decision making amongst the board, now it is streamlined.
    As such I believe these are 3 factors why the company’s operations may have been slower of late.
    This is what I believe Globe has in its favour:
    1. Of the mining operations in Malawi, Paladin’s Uranium mine (Kayelekera) is the only one in existence. Meanwhile Globe’s Niobium is the only other project even close to production. And given mining makes up almost 40% of Malawi’s GDP, with Paladin’s mine paused for production, Malawi’s GDP will drop significantly.
    2. With that in mind, I believe Globe may have the leverage and cards to negotiate a more favourable DA for the Kanyika Niobium project.
    3. The cash position allows for them to explore other “in vogue” commodities, such as graphite and sure up drill targets.
    4. Additionally, their cash position also allows for them to get through these negotiations without raising capital.
    5. The share price is below cash backing.
    Do I believe they are going to bask in their successes overnight? No, but there is confidence to know they are on the right track and they have multiple projects at various stages that I believe will attract new holders over the coming months and years.

    But as always DYOR. As this is the musings of one mere investor.

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