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1.2¢ vector resources limited

Baillieu Valuation of VEC, page-297

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cfp

2,919 Posts.

379

21/03/19

17:04

Post #: 37842654
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Originally posted by 82Punter: ↑

Hi CFP, perhaps look at it like this, the market is currently valuing VEC's gold in the ground at AUD$11.80/ounce based solely on the 60% share of the JORC resources at A-K and Maniema (ignore Kibali South's 1.47Moz for now as it's not a completed acquisition). The market is not pricing in any value attributable to the plant and equipment that is part of the A-K acquisition.

What has been priced in is the 'Magna factor'. Once Magna has been cleared and we know the condition of the P&E, the MC will improve. I would expect that as the DFS progresses the price per ounce in the ground for A-K will likely increase to somewhere in the US$20-$50/oz range to give us a MC of US$38.4m - US$96m (AUD$53.33m - AUD$133.33m) plus the P&E + the Maniema resource. That puts us back into the 2.2c - 5.7c per share territory, with further growth potential as the DFS gets completed and potential resource upgrades at A-K (thanks to the new exploration targets).

Just have to clear out Magna first so that the market can regain some confidence in this puppy!

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I agree 100% that Magna has to clear out first then hopefully we will see new money come in, possibly fund managers, superannuation, cornerstone has been mentioned, I like Sprott he doesnt mind paying a premium either

VEC Price at posting: 1.1¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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