Asset Management in the Super-Cycle: The Globex DNA as a Commodity Investment
For over 40 years, Globex Mining has pursued a business model that differs significantly from traditional exploration companies. CEO and major shareholder Jack Stoch, a geologist with decades of industry experience, relies on the so-called "Project Generator Model": Properties are acquired, geologically developed, and then optioned to partner companies. These partners finance the exploration, while Globex receives cash payments, equity stakes, and, most importantly, royalties.
Today, the portfolio comprises approximately 270 projects at various stages of development. Of particular importance are the 107 royalty agreements and other ongoing options, as they give Globex a stake in future mine production without having to bear operational costs itself. This model is complemented by a publicly traded investment portfolio valued at over CAD 30 million, while the company remains debt-free.
The range of raw materials extends from precious metals such as gold and silver to base metals like copper, nickel, zinc, and lead, and on to strategic metals such as lithium, cobalt, vanadium, scandium, and rare earths. Industrial minerals are also represented. Thus, Globex is less a bet on individual metals and more a broadly diversified investment in numerous critical raw materials for the energy transition, infrastructure, and the defense industry. Most projects are located in politically stable regions of North America. A historically notable European location is the Bräunsdorf license area in Saxony, part of the famous Freiberg silver district, where precious metals, zinc, and lead have been mined for more than 850 years.
Gold Exploration in the Abitibi Belt: Progress at Duquesne West
A key value driver in the portfolio is the Duquesne West Gold project in the Abitibi Gold Belt in Quebec, which is being developed by Emperor Metals. The ongoing campaign includes approximately 15,000 m of new drilling as well as 8,000 m of historical core analysis, adding a total of approximately 23,000 m of additional data to the geological model. Initial results confirm a large-scale system. Drill hole DQ25-01 intersected 107.7 m averaging 0.5 g/t gold, while the total mineralized zone extends over approximately 170 m. Previous drilling also returned high-grade intervals such as 21.7 m at 35.2 g/t gold, indicating structural high-grade zones within a broad mineralized system.
The deposit already hosts a resource of 1.46 million ounces of gold averaging 1.69 g/t Au. Emperor aims to expand this into a multi-million-ounce project through further exploration. Of particular interest are newly identified broad bulk-tonnage zones near surface, which could enable an open-pit scenario.
Royalty Value Driver Parbec: Gold Deposit Near the Canadian Malartic Mine
Another key royalty asset is the Parbec Gold Project, which is being developed by Renforth Resources. The property is located directly on the well-known Cadillac Fault, one of Canada's most productive gold structures, just a few kilometers from the large Canadian Malartic gold mine. Globex holds a 3% gross metal royalty here, meaning any future production would generate direct revenue. A technical report in accordance with NI 43-101 already indicates a resource of 265,800 ounces of gold in the Measured & Indicated category, as well as an additional 97,000 ounces in the Inferred category.
Broad diversification across precious metals, base and polymetals, as well as specialty metals and rare minerals. Over 100 royalties and several options.
Renforth is currently preparing a new exploration phase. Over an area of approximately 325 × 120 meters, the overburden is being removed to expose parts of the mineralized structure. Channel sampling and further drilling programs are scheduled to follow. In addition to open-pit potential, there is already an underground access ramp, while infrastructure and labor from the nearby mining town of Malartic offer additional advantages.
New Option Proceeds: Edison Lithium Secures Two Gold Projects
Another example of how the Project Generator model works is an option agreement concluded in early March with Edison Lithium regarding the Joutel North-West and Gagné gold projects in the James Bay region of Quebec. The agreement has a total value of CAD 3.5 million. Edison will pay CAD 750,000 in cash, CAD 750,000 in shares, and CAD 2 million in mandatory exploration expenditures over three years. Upon exercising the option, Edison will receive 100% of the projects, while Globex retains a 3% gross metal royalty. That is how it is done!
The properties are located along the Casa Berardi structural zone, a significant gold structure in Quebec, where several mines have already produced. Previous drilling on the South Gold Zone returned, among other results, 54.7 m at 1.1 g/t gold and 15.7 m at 1.7 g/t gold. At the same time, there are numerous other geological targets along a total strike length of more than 17 km that have so far been only partially explored. For Globex, the deal means immediate revenue, additional exploration investments from the partner, and, in the long term, a further royalty interest.
Focus on Strategic Metals: Antimony as a Geopolitical Trump Card
Antimony is increasingly evolving from a niche metal into a geopolitically relevant raw material. Applications in ammunition, flame retardants, battery technologies, and semiconductors make the metal strategically indispensable, while Western sources of supply are scarce. The high-grade drill results at Bald Hill, averaging 4 to 5% Sb, are therefore relevant not only geologically but also politically. Added to this is the Golden Pike project, where gold and antimony potentials are being developed in parallel. Globex is positioning itself very early and proactively in a market segment that is increasingly subject to government support programs and security policy prioritization. The antimony valuation factor has emerged as a key driver of returns in recent weeks. This trend is likely to continue unabated.
Conclusion: Diversified commodity exposure with growing royalty value
Globex Mining has one of the most unusual business models in the commodities sector. Instead of developing mines itself, the company has spent decades building a portfolio of projects and royalties that now comprises around 270 properties and more than 100 royalty agreements. This model reduces operational risks, ensures ongoing revenue from option payments, and simultaneously offers significant leverage on the exploration successes of partner companies. Progress on projects such as Duquesne West, Parbec, or the new options in the Joutel area demonstrates how new value drivers are continuously emerging.
With a share price of approximately CAD 2.68 and 56,417,436 outstanding shares, the market capitalization amounts to around CAD 151 million. This is offset by a debt-free company, an extensive project portfolio, and a publicly traded investment portfolio valued at over CAD 30 million. Especially in an environment of rising gold prices and growing geopolitical efforts to secure raw materials, Globex's diversified project generator model could increasingly come into sharper focus for the market. Many of the royalties and exploration projects are still in early stages of development - a fact that suggests a significant portion of the portfolio's intrinsic value may not yet be fully reflected in the current stock price.
The GMX stock has gained over 90% in the last 12 months and has more than quadrupled since 2024. Currently, the price is once again trading at a multi-year high in the range of CAD 2.60 to 2.80. Given the current price dynamics, further upside is inevitable. Our initial recommendations at around CAD 1.20 are now up over 120%, and the chart currently shows no signs of weakness! So it is time to keep buying with confidence!
IIF host Lyndsay Malchuk in conversation with CEO Jack Stoch about the art of maximizing the value of a commodities portfolio.
This update follows the initial report 11/2022.
