One of Rich’s biggest stock picks for May is Geomega Resources Inc (TSXV:GMA) (OTCPK:GOMRF). Based in Boucherville and St-Bruno, Canada, Geomega has developed a proprietary, environmentally-friendly “ISR Technology.” This tech recycles rare earth elements, with a specific focus on the permanent magnet industry. The company produces four high demand, high price, rare earth elements: Nd, Pr, Tb, and Dy.
Today, Rich is profiling some major news for Geomega that sees that company moving into a new market. This news has been a long time coming, and today’s press release could lead to some big moves for GMA stock.
“This is big news for a stock that nobody’s been talking about,” Rich explains. “We could see a buying opportunity here pretty quickly, so keep GMA on your watchlist, on your radar.”
Geomega Begins Hand Sanitizer Production at Pilot Plant in Quebec
Yesterday, the company announced that it has completed retrofitting its pilot plant and has begun producing hand sanitizer.
Back in April, Geomega obtained approval from Health Canada to manufacture and distribute hand sanitizer using the WHO-recommended formulation. The modifications to the company’s plant allow it to produce up to 675 liters of hand sanitizer per week.
As there is a significant lack of supplies in the market, production capability will ultimately depend on the availability of raw materials. Because of this, GMA will be securing additional supply and focusing on distributing its hand sanitizer product to local retirement homes, hospitals, pharmacies, and distributers in Quebec.
What’s more, Geomega has opted to donate 20% of its hand sanitizer production. This will go to local long-term care homes and other charities that are helping vulnerable members of society.
GMA’s Performance and Future Prospects
Since the start of 2020, Geomega’s share price has moved within the $0.10 to $0.20 range. Currently trading at $0.14, the stock has a long way to go before it approaches its one-time high of $4.75, which it achieved nearly nine years ago.
Looking at the long-term, rare earth elements remains a potentially lucrative play. The global market value was valued at $8.10 billion in 2018, and by 2025 it is expected to be worth around $14.43 billion.
Currently, China controls most of the world’s supply of rare earths. However, there’s been a major push as of late to break America’s reliance on China by boosting domestic rare earth stocks. Geomega is hoping to begin initial rare earth production from its demonstration plant this year. The company also owns the Montviel rare earth carbonatite deposite.
What do you think? Is GMA a good play for both the short- and long-term? Will hand sanitizer boost profits for now and allow the company to achieve rare earth dominance later? Let us know your take!
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