CTG.V - Global Minerals Ltd

[bullandbear]

Here's and grossly undervalued and underappreciated company.

bullorbear

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Global Minerals Ltd.

Global Minerals is a producing junior in cash flow and has recently announced a $2 million dollar loan facility with Investek Bank Investec Bank | International Specialist Banking Group (July 9, 2008) that will part finance the pre-feasibility study and permitting of the Streiborna Silver- Polymetalic Mine. Investek has the first right of refusal on all or any future Strieborna mine financings and it is anticipated that they will finance all the way to production.

The President & CEO Mr. George W. Heard, BSc, MBA, P Eng ( who worked with BHP for 9 years). and Dr. Hans E. Madeisky, BSc, MSc, DIC, PhD,
P Geo are the key people in the company.

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Global Minerals Ltd. ( CTG - TSX.V) has released a production and sales update for the Front Range Project. (June 20, 2008)

Front Range Project Colorado USA : production and sales update

Gold and silver sales

Seven truckloads of concentrate have been shipped to date in 2008. This compares with eight truckloads for all of 2007. It is anticipated that an additional 15 truckloads of concentrate will be shipped to the smelter during the remainder of the year. Each truckload contains 20 to 30 tons of concentrate.

Provisional payments for shipments (approximately 80 per cent of value) are occurring about 60 days from the shipping date. Final payments are typically received 90 to 120 days from the shipping date.

Production and development

Mine production is averaging 35 to 60 tons per day, four days per week. The mill operates 24 hours per day, four days per week and output averages 1.8 to 2.2 tons per hour.

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Slovakian Polymetalic Mine: ( an exploration potential to prove up +100,000,000 ounces of silver by drilling other vein areas not previously explored by the Slovakians)

Located near the historic mining town of Roznava in south eastern Slovakia Slovakia is a full-fledged member state of European Union, thus providing politically a very stable environment for mining operations

Global has a 60% interest, and its Slovak partners PIDECO hold 40%. Global can earn an additional 10% through the expenditure of US$ 2M over two years, thus forming a 70/30 participating joint venture. Global has the right to purchase the remaining 30% of the joint venture for US$ 6M

Current NI 43-101 compliant resource calculation, completed by an independent consulting firm AMC Pty Ltd., estimated a current resource (measured and indicated) of 1.925 M tonnes at 231.7 g/t Silver, 1.1% Copper, 0.7% Antimony and 33.65% Fe

Excellent existing infrastructure; the property consists of two mining leases.

[Naamplao]

Well first of all this is a TSX Venture stock....the stock symbol is CTG.V

Since your recommendation it has lost about 25% of its value. It may be undervalued as you say but no one appears to be interested especially with volumes in the 50K or less range on a stock worth $0.095/share

[bullandbear]

Talking about value in the junior mining sector is like complaining
about the rain during a hurricane. But even though every company is
priced well below where it was just a few months ago, regardless of
how successful they have been in advancing their biz model, there are
still relative values worth noting.

The best way to compare late stage projects and current silver
producers is to look at silver equivalent ounces per dollar of market
cap. For some projects, that is a meaningless number because they
might never be mined and have outstanding issues, therefore the market
will price that in no matter how big the resource may be. But for the
real projects and current producers, it is a legitimate comparison
tool

I bring up CTG in this discussion because the stock has become so
cheap now its almost ridiculous.

The current resources at Streiborna in all categories, compliant to
NI43-101, stand at about 3.4 million tonnes in the mineral inventory,
and represent a silver resource of over 22 million ounces. Add in the
77 million pounds of copper, and 48 million pounds of antimony
resource, the total resources at that mine are about 35 million silver
equivalent ounces.

It should also be noted that the resources are high grade. The
mineable widths averaging more than 3m represent an ideal underground
mine scenario. Other projects may have large resources but they are
so low in grade that they are marginal and therefore of less value.
Or they occur in such narrow widths that the mining costs would be
very high to extract them. Strieborna is a very economic project.

As a former producing mine, Stieborna has extensive development
underground and rehabilitation of the workings will be necessary, but
far less expensive than starting from scratch. There is also data on
hand from prior mining to show that high recovery efficency (90-95%)
can be expected for all metals using conventional technology.

The exploration potential is also very good, so the total resource is
likely to expand once the cash flow from operations can be directed
towards further discovery.

Add in all the comparison points, and CTG has a large resource with
upside potential, in a politically stable regime that welcomes mining,
with favourable economic operating parameters.

The market cap for CTG is only about $9 million. That works out to a
ratio of nearly 4 ounces of silver for every dollar of market cap. It
is mind boggling for a project that is so favourable for development
to trade so cheaply. Even going with the standard metris of $2 asset
value per silver equivalent ounce, that would still suggest a value of
$70 million, when the entire company trades at only $9 million.

Now there are issues. It will cost about $8.5 million to get the
project through to feasibility. Another $50 million or so will be
needed to recommence mining. The market is not in the mood to take on
risk these days, and companies that require funding are way down due
to the credit crunch. But I believe CTG will be able to get that
money from institutional players, because it will take just more than
one year of operations to recover the entire up front investment,
since the mine will be extremely profitable.

How does this all compare to other plays? Well, I really like SEG and
consider it extremely undervalued as well. SEG has a compliant
resource of about 45 million ounces in all categories, and a market
cap of just $25 million. So your getting only about 2 ounces of
silver per dollar of market cap, which is still very cheap, but CTG is
certainly more undervalued.

I also like EDR. The resources in all categories would be about 49
million equivalent ounces, and the market cap is around $145 million.
This suggests investors only get about a third of an ounce of silver
per dollar of market value.

All three examples above are robustly economic, with strong growth
potential, and discovery upside. The same comparisons can be made
with other candidates. My point is very simple: That CTG has a
strong story, yet the stock is deeply discounted even relative to its
peers which are all also very cheap.

I think there are risks for CTG, but the value of the company has to
offer a good shot for investors who are willing to buy at these
levels.

[Naamplao]

Well you may be right and this stock will rebound in the next year but the timing is certainly not correct right now.

here is the sharpChart for those that are interested CTG.V - SharpCharts from StockCharts.com

Since I commented on this stock just 4 days ago the stock has lost another $0.015 or 15% with no sign of a reversal...in fact it is plumbing its lowest levels in the past 3 years.

There is one major positive though in that despite the decline in the stocks value the accum/Dist is positive so there are believers in the stock such as yourself and at some point it may turn around....

As you can see in this P&F chart it is currently at its major support level at $0.09....break this and the stock is going for a long continued slide IMHO

[bullandbear]

GLOBAL MINERALS COMPLETES FIRST DRAWDOWN IN $2 MILLION LOAN FINANCING

Global Minerals Ltd. has closed and completed the partial drawdown ($750,000 (U.S.)) of the $2-million (U.S.) convertible loan facility with Investec Bank (U.K.) Limited. The company expects to draw down the balance of $1.25-million (U.S.) under the loan facility upon registration in Slovakia of documents related to the pledge to Investec by the company of its 60-per-cent equity interest in the company's Slovakian subsidiary, Global Minerals Slovakia SRO.

The loan will be used by Global Minerals primarily for expenditures related to its Strieborna polymetallic project in Slovakia. The proceeds will allow the company to part finance the prefeasibility study and permitting related to the Streiborna project, and to provide working capital.