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Globe Metals & Mining Limited (AU:GBE)
ASX:GBE

Globe Metals & Mining Limited (GBE) AI Stock Analysis

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AU

Globe Metals & Mining Limited

(Sydney:GBE)

Rating:37Underperform
Price Target:
Globe Metals & Mining Limited's overall stock score reflects significant financial struggles, marked by zero revenue and consistent losses. The strong equity position provides some stability, but the reliance on external financing is a major risk. Technical analysis indicates a stable trend, but the negative P/E ratio and lack of dividends highlight valuation concerns. The company must focus on revenue generation and cost management to improve its financial standing.

Globe Metals & Mining Limited (GBE) vs. iShares MSCI Australia ETF (EWA)

Globe Metals & Mining Limited Business Overview & Revenue Model

Company DescriptionGlobe Metals & Mining Limited explores, develops, and invests in the resource sector in Australia and Africa. The company primarily explores for niobium and tantalum deposits. It primarily holds 100% interest in the Kanyika project located in Malawi. The company was formerly known as Globe Uranium Limited. Globe Metals & Mining Limited was incorporated in 2005 and is headquartered in Midvale, Australia.
How the Company Makes MoneyGlobe Metals & Mining Limited generates revenue primarily through the exploration and development of its mineral resource projects. The company's primary revenue streams include the sale of niobium and tantalum, which are critical components in the production of high-strength steel, electronics, and other high-tech applications. Globe Metals & Mining seeks to enhance its earnings by advancing its key projects to production stage and establishing strategic partnerships with technology and manufacturing firms that require a stable supply of these metals. Additionally, the company may engage in joint ventures or licensing agreements to leverage its resource base and expertise, contributing further to its revenue generation.

Globe Metals & Mining Limited Financial Statement Overview

Summary
Globe Metals & Mining Limited faces significant financial challenges, with zero revenue and consistent losses. Although the company maintains a strong equity position with no debt, the lack of operational cash flow and reliance on external financing pose substantial risks. The need for improved revenue generation and cost management is critical for future profitability.
Income Statement
15
Very Negative
The company consistently reported zero revenue, indicating a lack of operational income generation. The net profit margin is negative, reflecting ongoing losses. Additionally, EBIT and EBITDA margins are negative, highlighting operational inefficiencies and high costs compared to non-existent revenue.
Balance Sheet
30
Negative
The company has a strong equity base with no debt, resulting in a zero debt-to-equity ratio. However, the persistent negative net income impacts return on equity negatively. The high equity ratio indicates financial stability, but the lack of revenue generation is a significant concern.
Cash Flow
20
Very Negative
The company faces negative operating and free cash flows, indicating cash outflows exceed inflows. Despite positive financing cash flows, primarily from equity or debt sources, the inability to generate operating cash suggests unsustainable operations without external financing.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.00199.000.00
Gross Profit
-13.00K-21.00K-22.00K-60.00K-16.80K-13.00K
EBIT
-2.55K-2.61M-1.75M-2.16M-1.45M-1.44M
EBITDA
-2.58K-2.69M-2.59M-2.47M-1.36M-1.44M
Net Income Common Stockholders
-3.32K-3.43M-2.66M-2.75M-1.38M-1.45M
Balance SheetCash, Cash Equivalents and Short-Term Investments
289.00K1.15M244.00K431.00K2.82M5.18M
Total Assets
33.41M33.02M30.89M30.86M32.68M33.98M
Total Debt
1.56M0.00825.00K1.05M46.00K0.00
Net Debt
1.27M-1.15M581.00K616.00K-2.77M-5.18M
Total Liabilities
2.15M275.00K967.00K1.36M404.00K312.00K
Stockholders Equity
31.26M32.74M29.92M29.50M32.28M33.67M
Cash FlowFree Cash Flow
-2.21K-4.09M-2.77M-3.79M-2.29M-2.15M
Operating Cash Flow
-2.64K-2.83M-2.02M-2.32M-1.23M-1.36M
Investing Cash Flow
-1.92K-1.26M-428.00K-1.02M-1.06M-794.00K
Financing Cash Flow
1.49K5.00M2.26M1.02M2.29M2.15M

Globe Metals & Mining Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.03
Negative
100DMA
0.03
Negative
200DMA
0.04
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.35
Neutral
STOCH
11.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GBE, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:GBE.

Globe Metals & Mining Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
AUGBE
37
Underperform
€19.45M-10.14%18.64%
$5.69B154.472.27%
$287.44M22.645.86%
$288.01M-33.33%
$1.05B7.0010.39%2.01%
AUASM
54
Neutral
AU$130.57M-15.33%-52.53%-27.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:GBE
Globe Metals & Mining Limited
0.03
-0.03
-49.09%
LYSCF
Lynas Rare Earths
5.53
1.15
26.26%
ALKEF
Alkane Resources Ltd
0.46
0.12
35.29%
ARAFF
Arafura Resources
0.11
-0.02
-15.38%
ILKAF
Iluka Resources Limited
2.50
-2.04
-44.93%
AU:ASM
Australian Strategic Materials Ltd
0.71
-0.11
-13.41%

Globe Metals & Mining Limited Corporate Events

Globe Metals & Mining Issues Unquoted Convertible Notes
May 5, 2025

Globe Metals & Mining Limited announced the issuance of 300,000 unquoted convertible notes as part of a previously announced transaction. This move reflects the company’s ongoing efforts to manage its financial resources and potentially expand its operational capabilities, which may have implications for its market positioning and stakeholder interests.

Globe Metals & Mining Announces Convertible Notes Issue
May 1, 2025

Globe Metals & Mining Limited has announced a proposed issue of 300,000 convertible notes as part of a new securities placement. This strategic move is aimed at raising capital to support the company’s growth initiatives, potentially impacting its market positioning and offering new opportunities for stakeholders.

Globe Metals & Mining Secures A$300,000 via Convertible Note
May 1, 2025

Globe Metals & Mining Limited has issued a convertible note to raise A$300,000 for short-term working capital needs. The note, issued to an overseas investor, carries a 20% annual coupon rate and offers conversion options into ordinary shares at a discounted price. This financial move is aimed at bolstering the company’s liquidity, potentially impacting its market position and offering flexibility in managing its financial obligations.

Globe Metals & Mining Secures Key Offtake Agreements for Kanyika Project
Apr 30, 2025

Globe Metals & Mining Limited announced significant progress in its Kanyika Niobium Project, with two non-binding MOUs signed for up to 100% of Phase 1 production of niobium and tantalum pentoxide. These agreements, with Myst Trading Pte Ltd and Neo Performance Materials Inc, position Globe to secure substantial offtake commitments, supporting the project’s economic feasibility and enhancing its market positioning.

Globe Metals & Mining Expands Loan Facilities with Director Bo Tan
Apr 30, 2025

Globe Metals & Mining Limited has announced an increase in the loan facility with Director Bo Tan, raising the limit from US$1.2 million to US$1.4 million, with the additional amount available for drawdown on June 1, 2025. Additionally, the repayment date for a separate A$2.3 million loan facility with Mr. Tan has been extended by three months to August 25, 2025. These changes reflect the strong support and commitment from Mr. Tan, which is appreciated by the company’s board, and are expected to positively impact the company’s financial flexibility and operational stability.

Globe Metals & Mining Secures Offtake Agreements for Kanyika Project
Apr 6, 2025

Globe Metals & Mining Limited has signed a non-binding Memorandum of Understanding with Neo Performance Materials Inc. for the offtake of 150 metric tonnes of Niobium Pentoxide from the Kanyika Project’s Phase 1 production. This agreement, along with other MOUs and letters of intent, covers up to 100% of the project’s Phase 1 output, supporting the company’s updated Bankable Feasibility Study and enhancing its commercial viability. The partnership with Neo is expected to strengthen Globe’s market position and provide a significant boost to its funding efforts.

Globe Metals & Mining Limited Announces Cessation of 2 Million Securities
Mar 31, 2025

Globe Metals & Mining Limited announced the cessation of 2,000,000 securities, which were options expiring at various dates with an exercise price of $0.13. This cessation was due to a cancellation agreement between the entity and the holder, effective March 27, 2025. This move might impact the company’s capital structure and could have implications for stakeholders regarding the company’s financial strategy.

Globe Metals & Mining Aligns Executive Incentives with Strategic Milestones
Mar 31, 2025

Globe Metals & Mining Limited has issued a total of 9,500,000 unlisted performance rights to its CEO and CFO under its Employee Awards Plan. These performance rights are tied to specific milestones, including the signing of binding offtake agreements, completion of feasibility studies, and the commencement of mine development for the Kanyika Niobium Project. This strategic move aims to align executive incentives with the company’s growth objectives and project execution, potentially enhancing its market position and operational efficiency.

Globe Metals & Mining Limited Releases Half-Year Financial Report
Mar 13, 2025

Globe Metals & Mining Limited has released its half-year financial report for the period ending December 31, 2024. The report provides insights into the company’s financial performance, including profit or loss, cash flows, and changes in equity. This announcement is crucial for stakeholders as it reflects the company’s operational efficiency and financial health, impacting its industry positioning and future strategies.

Globe Metals & Mining Secures Key Offtake Agreement for Kanyika Project
Mar 10, 2025

Globe Metals & Mining Limited has signed a non-binding memorandum of understanding with Myst Trading Pte Ltd for the purchase of 100% of the Kanyika Project’s annual tantalum pentoxide production and a right of first refusal for 25% of its niobium pentoxide production. This agreement marks a significant step in securing offtake agreements for the Kanyika Project’s Phase 1 production, enhancing Globe’s access to Asian markets and supporting the project’s funding and development. The MOU is expected to lead to a binding agreement by September 2025, aligning with the company’s strategic goals and market expansion plans.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.