# GME - GME Resources



## crazyjimsmith (8 November 2006)

Here's part of an article from The Australians Robin Bromby. 



> GME Resources has 1.2 million tonnes of contained nickel and 75,000 tonnes of cobalt.
> 
> GME is capitalised at a touch over $75 million, but one broker who has run the numbers reckons the resource is worth about $25 billion at present prices ($US32,652/tonne for nickel on Thursday night).
> 
> ...




I thought it was weird that nobody here is covering this.


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## tour (8 November 2006)

*Re: GME Resources (GME)*

i cannot agree more smith, and its finally getting some recognition.i've been holding for some time now and have been doing alot of research on this, and i rkn the prospects are good.  
the potential t/o by minara IMHO will be immimnent as they already have dealings with each other, even without it its they still have a significant amount of NI underneath their land. 

i predict the next 2 weeks is gonna be a bumper.


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## EasternGrey1 (15 November 2006)

One week on, looks like the jump up has started. But IMHO it's got an awful long way to go .. 

Continuing a conversation from the "Nickel" board ..... updated numbers:

Today's announcement states that GME has resource 128.1mt @ 1.00% Ni = 1.28mt Ni.

Minara's nearby JV Murrin Murrin resource is 325mt @ 0.99% Ni = 3.2mt Ni.
Minara only has 60% ownership, ie. 1.92mt.

So GME has exactly 2/3 of Minara's resource, at the same grade.

MRE market cap is $2,484m. 2/3 of that is $1,656m. Even after today's rise, GME market cap is only $107m.

Looks brilliant to me, even with development expenditure still to come!!


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## imajica (24 November 2006)

with 1.28 million tonnes of nickel and 75000 tonnes of cobalt 

and a market cap of 140 million

undervalued : I believe so!

in ground value has been calculated at 25 billion by a broker

Read the article here


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## Caliente (24 November 2006)

company looks good, but the sheer outdated nature of the website does not ring confidence with me. Why have they stopped issuing annual reports after 2002?!?!


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## imajica (24 November 2006)

you might have checked out their old website

New Website


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## Caliente (24 November 2006)

ahhh. much better ^_^


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## alankew (24 November 2006)

Is their nickel and cobalt hedged and if so at what price,sounds lika a good un.


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## tour (25 November 2006)

2 weeks on and let see what has happened:

-consistant high Volumn of trading that has never happened b4.
-reached a all time high of 60 cents +
-upgrade HL reasource incresed fourfold to 18 mt
-nickel prices 19 yr high

for GME IMO this is still the begining, there is more resources to be upgraded as indicated by the directors into HL, and MRE HL plant is to be completed by december, and if Nickel prices can stay at this price we should see another 
bumper 2 weeks for GME. 

one broker suggest their resources is worth +$25 billion dollars and with 215million shares, mkt at $140 million it looks undervalued.

heres my break down:

215 million shares
600000 tonnes of contained nickel
price of nickel AU$43421 (US $33,000/.76)  
Value = $28 billion dollars
once in production they will able to produce say 12,000 tonnes p/a
NP margin (35.6% for JBM), let say for GME it will only be 30% to take into account of plant production, and set up cost: 
NP = 156.3
NPAT: 109.41
EPS = .50888
P/e: .8342 average pe for jbm and mre is 15 and 10 therefore we willl use 12.5
sp of gme once in full production = .50888*12.5 = $6.361

of course it'll take time to get into production but its the possible t/o by MRE thats what interest me. if their HL demonstration plant is sucessful they can be in production straight away and take advantage of the current NI price. i guess a $2 t/o price tag or a 1 in 3 rights issued is not out of the qns.

ANother interesting thing is that their land is in the same area and often connects with each others land, and by looking at where their plants are its very close to GME's HEPI area where the bulk of GME's resource lays.

my target for the next 2 week is 80 cents fingers cross.

GL to all GME holders


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## tour (25 November 2006)

Another thing I did not take into account is their gold reserve and their cobalt tonnage.


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## EasternGrey1 (27 November 2006)

A reasonable analysis, Tour. I have worked on my own figures, they're different to yours but the end result is in the same ballpark (ignoring cobalt etc). Certainly if things go generally to plan these shares will go past $6. I don't think about 2-week price targets, though, because the market is so unpredictable. For as long as things appear to be going generally to plan, I intend to just hold.

I can't find any reference to hedging in their last annual report, quarterly report, or presentation. I doubt they would be doing any hedging yet.


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## pbsear (11 December 2006)

Trading Halt? Any views?


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## crazyjimsmith (11 December 2006)

Hopefully the trading halt will bring good news.

GME has been hitting a barrier of 65c. Expect it to fly if the news is good.

Huge upside if the heap leach technology is proven.


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## EasternGrey1 (15 January 2007)

Up about 40% in 3 days. Apart from it having been stupidly oversold, anyone know precisely why?????


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## Halba (16 January 2007)

when are they producing

how much will they produce?

what is the costs of their production/any delays/proven technology issues?

These questions have to be asked. I struggle to see value in lateritic nickel

It took MRE a decade to get into full production, and it costs billions of dollars for a fully fledged laterite mine. Heap leach can only produce so much.

Tour says "they can be in production straight away". This does not mean they can suddenly produce 12,000t out of thin air. They have to prove demo plant for a year, then after a year slowly ramp up. Could take ages


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## EasternGrey1 (16 January 2007)

Their last presentation  answers most of your questions. The project timetable, operating costs, etc, are in the last few pages.

Some articles on laterite Ni:-
Nickel Resources - CMCCC 
Ecerything you wanted to know about laterites but were afraid to ask 
Nickel Laterite Processing - Aker Kvaerner 

72% of the world's nickel resources are laterite.
There are at least 7 laterite projects in production.
Laterite production has to increase to meet future demand.
Aker Kvaerner has participated in the majority of all the lateritic nickel pressure acid leach projects that have been studied or developed around the world.
Minara(Anaconda) had big problems because they tried to cut corners.

Now that Minara and others have solved the problems, it is reasonable to assume that GME, with Aker Kvaerner assistance, will produce from their laterite deposit successfully.

I have put all their latest figures and dates into a spreadsheet. Using 60% of today's Ni price ($US34,925/t), today's exchange rate ($A1=$US0.7829) and a 15% discount rate, I get a per share NPV of 0.97. ie, Ni can drop 40% and my GME shares should still return significantly better than 15% p.a.

Because GME is highly leveraged to the Ni price, if they end up getting today's  price for their nickel then we're looking at an NPV15 of $3.


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## EasternGrey1 (16 January 2007)

I omitted to mention that in my calcs, I ignored cobalt. Given that GME also have Co with a "street value" of $US2bn, that alone should justify a reasonable part of GME's $160m market cap.


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## explod (14 May 2007)

The value of the resources within this company are being realised now.  It is nice to be on board, no soveriegn risk and clear blue skies for aussie resources


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## kelvin8r (23 August 2007)

Hey Guys

This is my first post. Anyone got any thoughts on GME at the moment? Looks like there starting to get back on a bit of a roll after the crash. 7.5c up today


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## EasternGrey1 (25 August 2007)

Didn't last long - down again on Friday.

I presume the drop is to do with headline nickel price dropping from 40k+ to 25k, as well as nervousness about US sub-prime mortgages and maybe simple profit-taking/stop-losses.

Looking back about 6 months, on 16 Feb Ni price was 41k and 27-mth Ni was 26,925. Ni price is now 27,775 (down 33%) and 27-mth Ni is virtually unchanged. Looking further back, 13 Nov 06 is the earliest figure I've got - 30,200 and 27-mth 21,750 - so although Ni has dropped 8% since then, the 27-mth price is actually up 23%.

So I think the underlying strength of Ni is still there, and if no recession will at least hold if not pick up.

At 27k Ni, I believe GME is a steal. But, as always, I can never be sure that there isn't something wrong that no-one is telling us about. But that applies to all stocks, of course.


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## kelvin8r (27 August 2007)

Hey EasternGrey

yeah i tend to agree that GME are a steal at the moment. i do hold some GME shares myself so looking forward to see what happens with them. would be very nice to see them around the $1.20 mark like the were a few months ago. be very interested to see what happens with the trial heap leach there doing with Cawse Nickel


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## EasternGrey1 (30 August 2007)

There was an article yesterday (http://asia.news.yahoo.com/070828/3/371m4.html) saying that steel end-users stopped buying a while ago because of high prices. Hence steel-makers reduced production. That alone would be enough to drop Ni prices, and they have indeed come off a long way. But the story also suggests that demand will pick up again later in the year.

I suspect the big drop in GME's share price was from 2 factors (a) falling Ni price, (b) GME's special share issue at a price well below its share price at that time.

My feeling is that GME's share price is likely to return to 'fundamental value' soon, which IMHO is very much higher than today's share price (barring world recession). And that the share price will rise a lot further as GME approach production.

GME is a stock for patient investors, but I do believe it will be very rewarding over time.


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## kelvin8r (30 August 2007)

I have to agree with you that GME is for patient investors and will be very rewarding. I have only been in the share market for nearly a year so still dont know enought to start day trading, plus lack of funds haha so this one is a good little one for me to watch. I got onto this stock through a family member and now hold a nice little amount. do u hold GME stocks aswell?


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## EasternGrey1 (31 August 2007)

Yes, I have shares in GME, and intend to hold them for quite a while yet. Over the years, I have learned to be patient with share investing - sometimes it takes the market many months to see what I have seen (and invested in), but then the reverse applies as sometimes the market sees something I can't see and by the time I see it the share price has gone out of sight. It can be a frustrating game!!


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## kelvin8r (31 August 2007)

Im the same, I intend to hold these for a long time as well. I have been able to top up my shares over some time now so im just going to be sitting on them. From what I have heard they will eventually be worth quite a few $$. I have only just recently found this forum too which has already taught me a lot, so thats for ur input as well champ.


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## EasternGrey1 (5 September 2007)

Ni back up to $US29,400, 27-mth $US28,050. IMHO demand should strengthen later in the year. My guess is the worst is over.


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## kelvin8r (30 September 2007)

Not a bad finish to the month, fingers crossed there should be more to come in November, I have also heard a rumour that they were having talks with some Chinese company... only hearsay tho.


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## greggles (1 August 2018)

The Pre-Feasibility Study on GME's 100%-owned NiWest Nickel-Cobalt Project in Western Australia is due any day now.

Today's 21.43% rise to 17c indicates that either someone is taking a punt that the PFS will exceed expectations or something has leaked out. It is currently looking like a potential breakout, although today's volume was not very high so obviously there was little supply under 17c. Most holders are clearly hanging on for the upcoming announcement.

The spurts of high volume in mid to late June and early July appear to be people taking positions in anticipation of the upcoming PFS.


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## barney (1 August 2018)

Thanks for the heads up Greg


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## barney (2 August 2018)

A day in the life of a Spec …. 

The PFS actually read ok but production is a long way off and the Market is fickle


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## greggles (2 August 2018)

Agree barney. I think it read OK as well but with $1 billion in capital expenditure and the volatility of commodity prices (nickel fell from US$7 to $US6 per lb between early June and mid-July) that free cash flow figure of A$3.342 billion is based on an average nickel price of US$8 per lb over the life of the mine. That's a big assumption.

As you say, production is a long way off and a lot of punters have decided to look elsewhere for more compelling short term opportunities.


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## silent1a (1 February 2021)

Oops, wasn't reading the rules of the stock tipping comp properly.




GME is currently caught in the crossfire due to a GME(NYSE) due to the same ticker name.
There'll be a lot of short term volatility as people will mistakenly or deliberately pump the stocks up as seen by large swings of almost double between the highs and lows in the past few days.

The craze will probably settle down in a week and be back to normal at the end of the month.


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## jbocker (1 February 2021)

silent1a said:


> GME is currently caught in the crossfire due to a GME(NYSE) due to the same ticker name.



I cant figure if there are some really smart people or really stupid people buying this on ticker.  Whatever they are doing ok today.
And  well done to you @silent1a up 30 odd% top of the tipping (at time of typing).


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## peter2 (22 October 2021)

*GME* appeared in my crap stock scan today. These ones always require lots of research before I trade them. 

Weekly trend is UP. Daily trend is UP. Daily traded volume is low, so price is quite volatile. 
Price has rallied since their last SPP (0.045). Company doesn't have much cash and they've spent plenty over the years ($33Million)  exploring their nickel, cobalt resource. Now, it's nickel laterite, not the preferred nickel sulphide. It costs a lot more and is very dirty to refine NI-laterite to pure Ni. 

Reading their Overview of Operating Activity (21/9/21). 
It contains this line. "The Company remains ready and committed to advance the project as soon as market conditions are favourable. " 

I'm thinking WTF are mgt doing, because nickel is at 12 year highs. 

They only people buying this one are gamblers hoping for a miracle.


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## Miner (15 August 2022)

peter2 said:


> *GME* appeared in my crap stock scan today. These ones always require lots of research before I trade them.
> 
> Weekly trend is UP. Daily trend is UP. Daily traded volume is low, so price is quite volatile.
> Price has rallied since their last SPP (0.045). Company doesn't have much cash and they've spent plenty over the years ($33Million)  exploring their nickel, cobalt resource. Now, it's nickel laterite, not the preferred nickel sulphide. It costs a lot more and is very dirty to refine NI-laterite to pure Ni.
> ...



@peter2
Do you reckon it is still crap with Jamie moving into non-executive directorship and a professional MD inducted?
Look at the revised PFS with updated Nickel price - increased IRR though not exciting
The PFS figures are challenging with no OPEX change over five years and that could be a CRAXX report





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the cost of production of Nickel with Cobalt rebate (no cobalt yet to produce) is $7 per lbs. If I go back to Ambatovy Nickel in Madagascar back in 2016, the Nickel produced at $3.5 per lbs was a too high a cost (of course then battery boom was but production cost double ??) 


I am tempted to put this for Sept tipping though realise first come first serve. I have to follow the announcements too for next two weeks


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## peter2 (15 August 2022)

I know nothing about the individuals but it seems like a positive move to get a more experienced MD in. 
PFS has progressed to DFS. The price of nickel has remained above it's longer term average. Looks like they've finally decided to proceed to the next step. I would classify as still speculative at this stage. 

The *GME* price has moved higher but there's been no convincing volume traded. If they do proceed they'll need to raise more capital.


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