Originally posted by cfp
Mutley, you and
@spokesy2009 are better than me with the reckonings on the back of an envelope, so please feel free to correct my estimates, these are rough and not designed to encourage anyone to buy or sell, I have worked these out on a current gold price of 1280.00, using a cost to smelter of 700.00, that leaves 580.00 profit, now we own 60% and must also allow say 20% discount for dealings in the DRC, by using my $2.37 calculator, I estimate our profit to be approximately $890,880,000 from the JORCed 3.2 million ounces we currently have, then we have the $70 million of machinery that will be marked down in value, but must be worth say $20 million I have no idea, I think our SP may head north once we get all the information out
I will just revisit this Post #:
37098972
The acquisition is great, the free capex is great but in today's market exploration plays are been smashed. IMO what the market is after here for VEC is:
1. A resource upgrade;
2. A feasibility study that shows it is mineable.
Point 1 and 2 provide a basis of a preliminary rerate only.
From there:
3. Funding and mining.
Calculating an in ground value is a nice to have as an exploration play, but what is moving markets in exploration plays is simply a view to mining and I think VEC is a little way off from that so a roadmap to mining is needed here and timelines been met. Yes we have been gifted US$70 million in capex but the value of that capex is based on what we mine with it, because if we don't mine its sales value equals scrap or what we can onsell it to another gold miner (and I suspect the value will be nowhere near US$70 million in that regard).
And I have come to this view on reflection as to why the SP has little moved here - it is how the market is now looking at projects, whether we like it or not in the current economic and political environment IMO. (The way I look at it is pick your stocks you think will do well because when that environment changes you will be rewarded in time. Patience is a virtue unless your really old then just sell up and spend your money on lifestyle LOL).
Going back to my embedded post above, VEC has a few more boxes to tick, but when it does and/or the market sees a roadmap to mining that it believes has a greater than 80% probability of occurring the rerate here will be swift and fast IMO etc etc.
Having said that I just wish someone would sell 1 share into 2.0c so the gap theorists are happy and the price can stabilise at the 2c - 3c mark before the resource upgrade.
It is the way markets have become IMO of late.
Patience is a virtue.
All IMO
