Given the equipment has a historical cost of US$70m and was not used I suspect the depreciation to be very little as it would be in 'as new' condition with a recoverable value close to its historical cost.
At this stage VEC's debt is the US$5m it has drawn down from the loan facility and the assets are US$70m (or close to) equipment, 60% of 3.2Moz JORC 2012 compliant gold resource, 70% of 420koz JORC 2012 gold resource and rights to acquire the Kibali South and Nizi gold projects.
Even if the equipment was depreciated by 80% of its historical cost (which is unlikely to be such a high depreciation given it is unused) to be US$14m, then the current MC only values the gold resource at circa AUD$10m, or AUD$4.52/oz. So I'd say it's very cheap at current SP IMO.
