GLOBEX MINING – The treasure trove among commodity players — Commodity rights as the key to the next resource wave

When markets turn: Portfolio flexibility is key

In today’s tense geopolitical environment, characterized by wars, massive government debt, and persistent inflation, gold is once again coming into focus as a safe haven for institutional and private investors alike. The escalating conflicts in Ukraine and the Middle East, along with growing distrust of currencies with expanding money supplies and declining purchasing power, are driving investors to increasingly seek refuge in physical precious metals. In such phases, gold functions not only as a store of value, but also as a strategic hedge against financial repression and systemic risks.

A clear indicator of this trend is the strong demand on the global market: in 2024, central banks increased their gold reserves by a remarkable 1,045 tons, a clear sign of gold’s continuing importance as a crisis-proof asset. The rush for bars and coins among private investors also continues unabated. At the same time, holdings on futures exchanges, such as COMEX, are declining, indicating that an increasing number of investors prefer physical delivery to mere paper contracts. Meanwhile, cryptocurrencies such as Bitcoin are increasingly competing for the role of “digital gold”. However, unlike physical precious metals, they are subject to high price volatility and therefore remain a speculative store of value for many conservative investors. In a world where debt mountains are growing, confidence in fiat currencies is declining, and geopolitical risks are rising, gold and, to some extent, silver are retaining their function as an iron reserve, a source of return, and insurance against emergencies. Physical demand remains high and inventories low, both of which are strong arguments for a sustained robust price trend.

CEO Stoch knows what he is doing and clearly enjoys it. In this video he explains how partner Ironwood Drilling is upgrading its gold resource from “inferred” to “indicated.”

Raw material power x258 – Globex Mining’s impressive project diversity

Globex Mining is emerging as a strategic hub for industry amid the current commodity boom and against a backdrop of geopolitical uncertainty. The focus is not only on gold and traditional metals: newer projects such as the Mont Sorcier iron/vanadium project are gaining in importance, especially in light of the trend toward green steel production. Here, Globex is attracting attention with improved metallurgical insights and an ongoing bankable feasibility study, signaling to investors rising project value and growing royalty income streams. In addition to its progress in the iron sector, Globex is also showing innovation in the field of specialty metals. Recent drilling at the Bald Hill antimony-gold project has returned mineralization over 20 meters and initial grades of nearly 29% Sb, indicating the property’s tremendous potential and the relevance of antimony for the high-tech and battery industries.

With 258 active projects and broad diversification across precious, base and specialty metals, Globex Mining is a sought-after value player and innovation driver in the North American commodities sector amid discussions about supply shortages. Over the past 40 years, CEO Jack Stoch has steadily expanded his raw materials holding company, with half of the projects in the precious metals sector, including gold, silver, platinum, and palladium. Globex holds 106 royalty models, most of which are attributable to third-party companies acquiring interests in a Globex mineral deposit. Several projects, including Fayolle and Agregat, have recently generated cash inflows for the Company. Several other projects are anticipated to generate royalties in the coming years, contingent upon market conditions, metal prices, and other factors. These include the Bell Mountain gold-silver project in Nevada, the Mont Sorcier iron project, the Magusi copper-zinc deposit, and the Ironwood gold project, all located in Quebec. Currently, the majority of Globex’s revenue is derived from the leasing or, in some cases, the sale of assets.

Metallurgical advances on several fronts

In July, Globex Mining announced to its shareholders that Emperor Metals Inc. had released a new mineral resource estimate for the Duquesne West property in Duparquet Township, Quebec, which is 50% owned by Globex and optioned by Emperor. The new resource estimate is based on a combination of open-pit and underground mining methods. The new inferred mineral resource now totals 26.9 million tonnes with a grade of 1.46 million ounces of gold (Au) at an average grade of 1.69 grams per tonne Au. The deposit contains several high-grade zones within a broader, low-grade gold deposit with large tonnages. Approximately 44% of the 1.46 million ounces are suitable for conceptual open-pit mining, and 56% are potentially mineable using conceptual underground mining methods. Globex is pleased with the progress to date and is excited that Emperor has already more than doubled the historical resources. The Company stated: “In 2025, the focus will be on surpassing the two million ounce mark and driving continued resource growth through systematic exploration from 1,000 feet depth to surface.”

Last week, Cerrado Gold Inc. provided an update on the continued work at the Mont Sorcier iron-vanadium project near the town of Chibougamau, Quebec. As part of the project aimed at producing high-purity iron, detailed metallurgical testing and the development of a process flowsheet continued throughout the quarter. All key work streams are now underway, and the Company has commenced an infill drilling program to update sufficient resources to the “proven” and “probable” categories as required to support further feasibility. The test results are currently pending. The bankable feasibility study is expected to provide more detailed information on the project’s potential, which already has a 2022 National Instrument 43-101 compliant Preliminary Economic Assessment (PEA). At that time, a project NPV of USD 1.6 billion was determined using a discount rate of 8% based on iron concentrates with an iron grade of 65%. Given the improved metallurgical results achieved to date, the Company is confident that it can deliver a high-purity DRI-grade iron ore concentrate with an iron content of over 67%, which will enhance the value of the project and provide a highly sought-after product to support the transition to green steel. Globex holds a 1% gross metal royalty on iron production from the Mont Sorcier property.

CONCLUSION: A portfolio with significant upside potential in the commodity supercycle

Globex Mining’s business model differs significantly from that of traditional explorers: the Company controls a large number of its own mineral projects in geopolitically stable regions such as Canada, the US, and parts of Germany. These projects are not only characterized by previous drilling successes and confirmed mineralization, but also offer scope for further geophysical exploration. Unlike many of its competitors, Globex does not act as a pure explorer; instead, it uses a licensing and participation model, in which third parties pay for the development of the properties. The Company generates revenue through royalty payments, option agreements, or joint ventures—an approach that combines stable cash flows with limited risk. The geopolitical situation also plays into Globex’s hands, as governments in North America are increasingly prioritizing the supply of critical raw materials, which are considered essential for infrastructure, the energy transition, and defense. The pressure to develop independent sources of raw materials in reliable countries is growing, and with it the importance of projects such as those in the Globex portfolio.

At the same time, global supply bottlenecks and a possible commodity supercycle are providing tailwinds. Experts expect significant price increases in the coming years, particularly for metals such as gold, silver, copper, and rare earth metals. With 56.1 million shares, the market capitalization currently stands at approximately CAD 75.2 million. The share price is being boosted by a steady deal flow, ongoing option income, and new royalty deals. Additionally, as of June 30, 2025, the Company had approximately CAD 30 million in available funds and valued company shares.

According to estimates, the value of the Globex portfolio could multiply significantly under favorable price scenarios. After rising by a substantial 31% over the last 12 months, the GMX share is currently trading sideways in the CAD 1.30 to 1.50 range. However, given the current price dynamics, the well-balanced portfolio could see an appreciation of 200% to 300% in the near future. During the last bull cycle, the share reached CAD 1.70, and this may not mark the peak this time around. Buy!

This update follows the initial report report 11/2022.