Galileo Resources (LSE:GLR) recently announced the launch of a drilling program at its Kamativi site in Zimbabwe1, following the detection of a lithium anomaly in the soil and streams. This marks a significant achievement for the mineral resource company. As it indicates the company’s commitment to strengthening its footprint in the mining industry.
And yet, the Galileo Resources share price does not seem to reflect this success. Let’s explore the share’s potential to explode in the near future.
Key Points
- Galileo Resources is popular for its opportunity-driven business model.
- Galileo Resources announced the launch of a drilling program in Zimbabwe.
- The company is keenly looking into a new-age metal portfolio with an emphasis on copper.
What does Galileo Resources do?
Galileo Resources is popular for its opportunity-driven business model. Their strong management team successfully discovers and evaluates mining projects for acquisition. These companies usually have been not performing well due to strategic, corporate, and/or technical reasons. And during the evaluation, Galileo’s management is able to pick the potentially successful companies that contribute towards its success.
The bull case for the Galileo Resources share price
The Galileo Resources share price went bullish in July 2022. The stock picked up pace from a price of 0.865p and went as high as 1.6p. During these four months, the stock appreciated by a whopping 85%!
The mining resource company’s stock enjoyed a brief bullish period again in April 2023. The stock started to rise from a price of 0.975p and went as high as 1.35p. This time, the stock appreciated by 38.5% in less than a month.
The key ingredient of Galileo’s long-term growth is its business model and the trained management behind it. This duo allows the company to expand its revenue streams through successful expansions.
The bear case for the Galileo Resources share price
The Galileo Resources share price went bearish after hitting the peak of 1.6p in October 2022. From here, the share continued to decline for more than six months and reached 0.975p. The stock declined by 39% during this period.
The company’s share underwent another bearish run in April 2023. From a price of 1.35p, the stock last closed at 1.05p, representing a 22% decline to date.
One of the major risks engulfing the company is a lack of investment in new technologies. Given the scale of expansion into multiple geographic locations, Galileo Resources is in dire need of technology integration processes. It will help streamline business and give more control to management.
Galileo Resources Share price prediction
Analysts are positive about the Galileo Resources share price and believe it to be a profitable investment in the long run. While the short-term price prediction is expected to be near the current trading price of 1.05p, the long-term price prediction is to go as high as 1.995p.
Should I buy Galileo Resources shares today?
The company is keenly looking into a new-age metal portfolio with an emphasis on copper. Copper has a growing demand in the global market due to its low-carbon potential for power generation. It seems to me this can take the company to new heights of success if its success streak continues.
However, the Galileo Resources share price has been taking its time to show successful expansions. Till it does, I will keep this stock on my watchlist.
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Article sources
- theZNZimbabwe News. “Galileo Resources commences drilling operations at the Kamativi site in Zimbabwe“
Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.
