VCN expects to release BFS mid-late October.My Price target:...

VCN expects to release BFS mid-late October.

My Price target: $2-$3 (at least 500% return)

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I did a research on the possible outcome on Kylylahti Project (copper, cobalt, nickel, gold, Zince) and would like to post below for comments and advices:

1/Revenue per annum: AUD$200-$220mln
* Base on annual report/Presentation & current metal prices.

2/Operating cost: $100-$150/tonnes@600,000t = AUD$60-90mln.
* Previous study showed cost at $63/t, my assumption has a much higher premium ($100-$150/t)due to my expectation of increased cost at current condition.

3/ Capital cost: $150-$200mln

4/ Thus, EBITDA - approx. $110-160mln.....

Considering the potential that VCN is around 2years away from production, a healthy cash balance of $50mln (raised at 45c) and another capital raising of 90mln shares, I believe in the lead up to profitable BFS & capital raising of 90mln shares, real players will try to push the price as high as possible to raise as much money for VCN and avoid dilution at cheap price. There is a potential that company can get an extra $60-$100mln cash from this new issue. It will be more than sufficient for VCN to bring project into development on a cash/debt basis.

At +$100mln EBITDA, VCN market cap should be getting closer to at least 5 times current price by the time it starts production (1-2 years away), this give me a two years target of $2-$3 or 500-800% upsize.

Not to mention there is chance to double resources and project upgrade and also VCN has 1 nickel project at advance stage which should be another added bonus.

Bring on the BFS, i'm interested to see how close my analysis compare to BFS study (I could be wrong though)

Disclaimer: I hold VCN, DYOR.....