GME RESOURCES LIMITED (ASX: GME)
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GME Details
GME Resources has successfully completed the final step of the metallurgical test work and progressed with the Pre-Feasibility Study (PFS) of its 100 per cent owned NiWest Nickel-Cobalt Project in Western Australia. Technical evaluation and metallurgical test work on the Ni-West Project focussed on developing a simple, cost-effective and flexible flowsheet which will deliver high-purity nickel and cobalt products that can service the rapidly growing Electric Vehicle (EV) battery minerals market. The Group appointed Mr Len Jubber as the Project Advisor to support the completion of the PFS on the NiWest Project. However, it is key to note that the group now plans to complete the PFS in June 2018 quarter which has been postponed from late last year and then to March 2018 quarter. This is due to delay in completion timeframes of external workstreams.
Consolidated Result (Source: Company Reports)
At financial front, GME recorded a net loss (after tax) of $180,208 (for the half year ending on 31 December 17) while it had generated profits of $2,064,550 last year for the same period. The Group received a tax refund of $613,196 for Research and Development in February 2018. The Group recorded an operating loss of $1,336,839 from its operating activities for the half year ending on 31 December 17 against generating a net cash inflow of $2,169,059 from its operating activities for the same period in the prior year.
The stock price rose by 125 per cent in the past six months given the target market opportunity and group-driven efforts, but slipped by 3% in last five days, as at March 22, 2018. The stock movement and growth hinges on the PFS study. Another tax refund might help boost the cash scenario which might burn out in some time. We believe that the group’s position in terms of the assets is decent but would be better to wait and watch in view of the PFS timelines, while we put an “Expensive” recommendation at the current market price of $0.16, and would review it at a later date.
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