HOT STOCKS ROCKETS POTENTIAL 10 BAGGER1 May 2020 21:57
Last month Galileo Resources announced an agreement which chairman Colin Bird emphasised completes subject to ministry approval, all matters necessary for Galileo actively to pursue mining development of the Star Zinc project and accelerate exploration of Ka****u. The two projects combined has the potential for a significant Zinc development in Zambia. That saw the shares up above 0.40 but they have since slipped back to a current 0.38 offer price capittalising the company at just 2.1 million. And now that is with results for the companys half year ended 30 September 2019 showed cash of just 0.41 million and net current liabilities of 0.41 million. There has since though been £0.50 million raised at 0.40 per share, operating expences for the half year were sub £0.20 million and particularly its currently 36% interest in the Glenover Phosphate project in South Africa. Options are been negotiatedfor the project including sale of long term off take definitive supply agreement with a major fertiliser pruducer subject to certain product specifications, We belive this project could bring in funds material to the current market cap-and there also that tailings material will contain high values of strategic rare earths ,which have been shown to be capable of pruducing a refinable rare- eath product for international refiners. This could be a ten bagger . The above could fund fund devolpment into pruduction of star zinc ,where a mineral resourse estimation has been determined to allow for a 6 year life of mine small scale operation to pruduce rock massof only 5,5oot/month containing 12,000 t Zinc metal per year.Zinc is currently around 1.900 per tonne but has mainly been comfortably above 2,000 in recent years , With the company noting in August when the price wasaroun 2,250 in house attributable revenues are projected at about USD15 million annually at current price , the annual all in costis projected not to exceed to USD2 million. We intend to apply for a mining permit and to target mining to startas near coincident with the start up of the Kabwe project. It is anticipated that could be in the seconed part of this year Colin Bird has is supporters but also a number of critics. But just consider the cash flow that star is almost certain to generate, Add in disposal proceeds on the phosphate investment which could dwarf the current market cap as well and there is also some other projects which look mostly uninteresting but there also Ka****u where the company has noted historical evidence that this concession is larger than Star Zinc and that it consider its proximity to the Kabwe refinery adds potentially value as such. The trade is at a current 0.38 offer price and up to 0.45 , targeting at least 1.60 and possibly more than double that on further news flow over the summer towards net cash generative production ,
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