Good news from Africa sees the mining company’s share price boom today.
The post ASX stock of the day: Globe Metals & Mining (ASX:GBE) shares up 200% appeared first on The Motley Fool Australia. –
The Globe Metals & Mining Limited (ASX: GBE) share price is up a staggering 207.69% to 12.5 cents at the time of writing. Globe shares closed at just 3.9 cents last week and opened at 5 cents this morning before having a rocket lit under them.
At one point during early afternoon trade, the company’s shares had rallied by almost 368% to 16.5 cents apiece before retreating to their current level.
What is this company?
Globe Metals & Minerals is an ASX resources company focused on resource exploration and development primarily in Africa. Its flagship project is the Kanyika Niobium Project in Malawi.
Globe Metals has been an ASX-listed company since June 2016. Until late last year, the company’s share price hadn’t really done anything remarkable. Globe shares spent a few years bumping along around 1 to 2 cents per share. But things turned around in October when Globe hit 3 cents per share and 4 cents by December.
Globe Metals shares were actually in a trading halt since Friday morning. At the time, the company said shares would resume trading on 8 June at the latest, pending an announcement. Well, we got the said announcement this morning.
So what’s going on with the Globe Metals & Mining share price today?
Globe released a statement around market open this morning. In this statement, the company informed investors the Malawi Government’s Mineral Resources Committee has reviewed Globe’s mining licence application for its Kanyika Niobium Project. The recommendation is for the grant of a mining licence.
According to Globe, this recommendation is a “critical and formal step” in obtaining a full license for its project. The company “now awaits receipt of the mining licence and subsequent execution of the Development Agreement with the Government of Malawi”.
Globe also told the markets it “is of the understanding that the licence will have a mining lease term of 25 years from the date of issue consistent with the Mines Act”.
Here’s some of what Globe’s managing director, Alistair Stephens, had to say on the news:
Globe has been working diligently and cooperatively with all stakeholders for many years to achieve grant of a mining licence for the Kanyika Niobium Project. Formal approval from the Malawi Government’s Mineral Resources Committee to grant the Mining Licence is a significant step forward for the company’s goal of becoming a niobium producer. I am particularly pleased for the Globe team who have stayed the course despite many obstacles in recent times.
Clearly, investors are over the moon about the news, given the company has more than tripled in valuation just today. At the current share price, Globe Metals & Mining has a market capitalisation of $67.5 million.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.