Australian (ASX) Stock Market Forum

VEC - Vector Resources

Jump to new
Bushman

Bushman

Joined
6 June 2007
Posts
1,314
Reactions
10
Hi guys;

This one is due to list shortly with the IPO closed and oversubscribed.

Vector Resources - 60m shares at 20c to raise $12m.

Funds to be used to explore for iron ore mineralisation in the Nabberu Basin, 150km north of Wiluna, WA. There is a map in the prospectus - my apologies but I have not yet mastered the art of embedding an image!

http://vectorresources.com.au/files...plementary prospectus 07 VECTOR RESOURCES.pdf


Nabberu Iron Project (100% Vector):

Hold exploration licences EP69/2061, EP69/2062, EP69/2064 and EP69/2065. Applying for licence EP69/2063. Total area covered by EL is 564 sq km.

EL's in a remote area with limited existing infrastructure.

Nabberu Basin 'is of similar age/size to Hammersley Basin and shares similar styles of mineralisation and chemistry of sedimentation'. Iron formations include Banded Iron Formations (BIF) and Granular Iron Formations (GIF).

Historical sampling of BIF formations has returned 'haemitite enrichment' with results >60% Fe noted. These include -
1. Miss Fairbairne Hills 54 - 63% (E69/2061)
2. Ivan Wells 55 - 62% (E69/2062)
3. Mt Cecil Rhodes 61 - 63% (E69/2064)
4. Mundan Hills 54 - 60% (E69/2065).

No results have been given for Hawkins Knob (E69/2063) or the GIF's.

Exploration expenditure of $8.9m will be committed to drilling these tenements over a two year period, leading into scoping/PFS. As highlighted in the prospectus, any such mining studies will focus on 'ability to access suitable infrastructure to enable production/transportation to ore markets'.

Note the current Chairman is Anthony Short. He has other ASX directorships including Regal Resources, Advance Energy, Palace Resources and Odin Energy. So while he is a mining man, he is not an iron ore man. Not sure how problematic this might be.

Summary

The Good:
Large tenement holding
Good historical assay results
BIF Haemitite mineralisation
Lots of working capital
Two year of good newsflow if the assay translate to drill hits
Geology 'like Hammersley Basin'

The Bad:
Chairman is not an 'iron ore' man
Passed over by BHP

The Ugly:
Next to the black stump. Will need a lot of high grade DSO type haemitite to make this project viable. But if there is enough ore there, this project could be a beauty. $60m seed capital suggests there are some true believers already.

Will be interested to see how this one goes after it lists. The float was oversubscribed. Might be worth hopping into 3 months down the track when the post listing spike starts to trend down - if the spike occurs that is. Depends on the prevailing market conditions. I am assuming listing date is within the next few weeks.
 
I have heard good things about this one.

The open could be spectacular.

I don't hold and dont intend on buying in.


Will be a keen watcher however. A friend got in through abn amro.
 
Yes that was what I was thinking - the strikes could be great but what will it cost to get it to port. Long way to go obviously and will depend on how much is in the ground in if it will support big capex.

I could not find the listing date for it. Personally I think it might be a hot float but lets wait and see. As I said I will be keeping it on my watchlist for the moment as I do not want to get caught up in an initial listing auction.

PS: I have just noticed that I have posted this in the General forum. Damnation. Any ideas how I move the post to 'Q-Z'? Mods - my apologies!
 
Havent read the ann yet but dont forget the 1c oppies available to holders on register on record date(not yet announced as far as i know-been on hols for last week-what a time to go away:banghead:)
 
Current market cap is $17.3 million undiluted and cash is $11.1 million. So the business is worth $6.2 million. VEC have mobilized a permanent camp at the Granite Peaks Homestead and that is now supporting field teams to complete various scoping programs over the 150 kms (that number is correct) of iron rich strike within VEC tenaments. Rock chip samples continue to give high grades over wide areas. Lots of news should start flowing out of these programs over the next few months. Potential target sizes look immense. Good luck to all longs
 
As Sidneysider said,things are progressing here.Also noticed a hint of buying(minute at this stage) but buying has been in heads and options.Options that were bought were at a fairly significant increase to the bid so maybe someone knows something.Almost certain i my mind that something is happening here.Check out the depth on the options,the 200K bid has only appeared this am and buyers are vying for position at the top of the pile.I hold
 
alankew said:
Hey people no such thing as insider trading!!!Blatant http://www.asx.com.au/asxpdf/20080506/pdf/318zl1pjtfbp1y.pdf
Surely this cant be allowed,must be a please explain somewhere
Click to expand...

I picked up some oppies several days and i know of other folks who were trying to get some. None of this is insider trading, just folks spotting a bargain. The news about the gravity survey work was already mentioned in the recent quarterly and the fact that a decent exploration program is underway means that there will be a reasonable flow of news.
 
Sydeysider thanks for the explanation,just seemed a bit odd them going up on the day they make the ann.Anyway has been picking up since,up 16% today on reasonable volume for something that doesnt trade that much.I also picked up some oppies for better leverage,just need the BHP?RIO price rise to be agreed.Seems to be a lot of action in the speculative end atm and also chinese companies securing their stake in their future
 
Good rise today,12% for the heads and 25% for the oppies:)Depth on both is good,options 8 to 1 on the buy side.No news yet so imagine what will happen when there is some
 
alankew said:
Good rise today,12% for the heads and 25% for the oppies:)Depth on both is good,options 8 to 1 on the buy side.No news yet so imagine what will happen when there is some
Click to expand...

trading halt announced, something about a deal with a third party, hard to say whats going on but it has nothing to do with the recent gravity survey they've been doing..........so we've still got that announcement to come as well. If they're both good news then we are going to see this baby fly :)
 
Good ann on 30th re Aquiring Magnetite Iron Sands project in Colombia.Was initially sold off but has recovered since.According to ann project is considered to have potential to host large commercial tonnage with low impurities and could be brought into production in a relatively short time.Infrastructure is close according to ann and it seems a simple process of dredging and magnetically separating(wouldnt want to be wearing a belt when that magnet is doing its stuff:))What is even more amazing when compared to "normal" dig it up mines is that the project is self replenishing,ann quotes 143m Tonnes of sediment being deposited every year.Now you know what happens to all thos Woolies and Coles shopping trollies:DAnd we still have news to come from its massive tenements in Oz
 
alankew said:
Good ann on 30th re Aquiring Magnetite Iron Sands project in Colombia.Was initially sold off but has recovered since.According to ann project is considered to have potential to host large commercial tonnage with low impurities and could be brought into production in a relatively short time.Infrastructure is close according to ann and it seems a simple process of dredging and magnetically separating(wouldnt want to be wearing a belt when that magnet is doing its stuff:))What is even more amazing when compared to "normal" dig it up mines is that the project is self replenishing,ann quotes 143m Tonnes of sediment being deposited every year.Now you know what happens to all thos Woolies and Coles shopping trollies:DAnd we still have news to come from its massive tenements in Oz
Click to expand...

very true
she's moving along nicely this morning in anticipation of gravity survey results, could be a big move here
 
Some fair sized buys going through again this morning,1st buy of the day was for approximately $54K which is a fair sized chunk in my mind(must be YT or Mickk2006:)),oppies are absolutley racing away and both have gapped up on yesterdays close..High of the year was 42c when it listed(from memory) but dont think that included the free(or very cheap)oppies.Nobody else following this.Cant get Bigcharts to bring up a chart,could anyone help.
 
alankew said:
Some fair sized buys going through again this morning,1st buy of the day was for approximately $54K which is a fair sized chunk in my mind(must be YT or Mickk2006:)),oppies are absolutley racing away and both have gapped up on yesterdays close..High of the year was 42c when it listed(from memory) but dont think that included the free(or very cheap)oppies.Nobody else following this.Cant get Bigcharts to bring up a chart,could anyone help.
Click to expand...

Oppies came out after the heads hit their high, about 6 weeks after listing. They briefly touched 20c this morning but have come back down to 15c, following the market trend. I expect the grav survey announcement to be made this week. Hopefully good news awaits! ;)
 
Been creeping up the last few days(oppies that is),up again today on reasonable volume and theres a pretty hefty bid(195K)sitting at the top of the buy stack.Already seen a few 100k buys gone through today.Either people liked the last ann on the Bolivian project or the aeromagnetic surveys have leaked or are about to be announced.Plenty of ifs buts and maybes but something must be going on.PS dont forget the options.Not sure if they are trading at the right money (think they are at a 1c discount,please correct me if I am wrong)but currently sitting at 17c plus 20c exercise with a June 2012 exercise date!
 
Is anyone else on this,reason I ask is that there have been a few more big buys(100k+) and want to know if anyone on here is buying.:)Is currently only 4c or so from its highest price since launch of IPO and this doesnt take into account the 17c oppies,so basically it could be seen as being in blue sky:):)
 
I've been in since the IPO, I sold my shares to buy the options a couple of months back. I'm intending to buy more oppies in the next week or two, hopefully in time for the pre announcement buying frenzy!! ;)

The Colombian venture has been looked at positively by the market so if we have some good results from the surveys then it should fly.......expecting those results by mid July at the latest.

IMO this stock is undervalued on the Colombian tenement alone, even if they 'only' reach the 250mt target.
 
Inefekt also been in since IPo and did same as you,sold heads to buy more option.Stellar performance again today but options still trading a a fair discount.Hope some others on here have bought.Still waiting patiently for the WA results
 
alankew said:
Inefekt also been in since IPo and did same as you,sold heads to buy more option.Stellar performance again today but options still trading a a fair discount.Hope some others on here have bought.Still waiting patiently for the WA results
Click to expand...

I think the recent run was more to do with the iron ore price negotiations with China more than the impending gravity survey announcement. It's strange that the options are lagging behind the heads in the last week, I would of thought with an exercise price of 20c that they'd maintain that 20c disparity, especially as the heads move past 40c. :confused:
 

Similar threads

springhill
LOT - Lotus Resources
3 4 5
Replies
98
Views
24K
brerwallabi
brerwallabi
exberliner1
LIT - Livium Ltd
2 3 4
Replies
73
Views
27K
frugal.rock
frugal.rock
Top