I am sorry but I believe a substantial resource upgrade would definitely be a market mover, the LOM would be extended, profits are increased, payback period remains the same, extending the gravy years that follow. Imagine if management all of a sudden targeted greater then 10 Moz or 20Moz all of a sudden Vector would be on the same stage as Kabali, Randsgold etc! I don’t believe large investors, companies such as Anglo, Randsgold, RSG etc would just ignore such news.
IMO that will get share price moving, especially if grades remain high throughout. Throughput at the plant will be both more efficient and cost less to process the shiny stuff.
@HAC30 where I believe you have gone wrong is
- comparing VEC to AVZ in regards to increasing resource size, this is like comparing apples and oranges.
Let me break down why the resource isn’t moving their SP and why it will move Vectors.
AVZ - no foundations, no road, no power, no equipment, no investment, no mining permits.
VEC - Fully functioning mine camp, power, water, close to town and rail, 70% equipment on site, approved underground mining permit, secured finance etc etc
This is just a brief comparison as we are comparing apples and oranges. But you can see why adding to the resource in Vectors case will be a market mover as once CAPEX in investment is locked up, Vector can begin to mine almost immediately.
AVZ on the other hand has a longer toad to travel.
I hope now you understand how substantial any increase to Vectors resource is at this point.
AIMO DYOR
