VML - Vital Metals

[barney]

Company to announce a material acquisition by Wednesday. Phil Coulsen has been buying up over recent months Where there is smoke there is fire

So it seems …… VML to purchase Cheetah resources ….. REE business with ex-Lynas personnel …. could prove a massive turn around for VML.

 

[barney]

My entry into this month's Competition …..

I have held this for a while based on their cash balance. The have recently announced a deal with a private "Rare Earth" Co. (Cheetah Resources)

They have Directors who worked with "Lynas" so there are experienced personnel involved ……

I expect some longer term appreciation …. I've held a substantial amount of Shares for a while now but expect further appreciation over the next few months/years.

Low risk/high reward scenario in my assessment

 

[Sean K]

My entry into this month's Competition …..

I have held this for a while based on their cash balance.....

Low risk/high reward scenario in my assessment

What do you think about the change in focus barney? You must have originally bought this for the gold and base metal exploration projects, not rare earth? You couldn't possibly have just bought it because they have some cash in the bank?

 

[barney]

What do you think about the change in focus barney? You must have originally bought this for the gold and base metal exploration projects, not rare earth? You couldn't possibly have just bought it because they have some cash in the bank?

Howdy @kennas … always good to see "old ASF-ers" lurking

My initial interest WAS actually the potential cash from the original TGN deal … Their Gold prospect looked ok as well, but even though that basically fell over, the cash deal came through, so I decided to stay involved (cash for a spec is pretty compelling as you know)

Given the cash backing and the constant buying of Phil Coulson plus his added involvement in becoming a Director, it still seemed a low risk trade overall.

Re the Rare Earths:- it is pretty trendy …. over the years I have learned that trendy is actually ok, as long as you aren't the last person to "pass the parcel"

So basically, I am happy with managements choices … (I actually bought more at 0.012 …. that decision could well be considered "early" given the price action (my timing is often poor, so guilty as charged!!)

I still see the trade overall as low risk for a Spec … It may turn to crap, but I've had plenty of "turn to crap" trades, so no big deal, as long as I have a few not so "turn to crap trades" to offset the bad ones

Good to see you are still around and kicking!! Hope life is treating you well

 

[barney]

My monthly comp pick again for August. Chart tells the story.

The two attempts to break 0.015 were a long way apart and essentially for totally different event scenarios given VML's new Project plans.

The selling into the last spike was likely profit taking and stale bulls exiting so a retracement period is to be expected.

Hoping for the tight range to hold in the short term, and a bounce back above 0.014 in an ideal world

 

[barney]

VML has continued in a tight range since my last post, so 1.5 months of 0.09-0.10 trading on light Volume.

Director Peter Cordin announced he is stepping down to allow restructure of the Board since the Cheetah acquisition.

Exec Director Zane Lewis was notably full of praise for Mr. Cordin's contribution over many years.

It shouldn't be long before important further news on the future plans of the Company are released and I am expecting another push on the SP as it unfolds …. (I hold)

 

[barney]

It shouldn't be long before important further news on the future plans of the Company are released and I am expecting another push on the SP as it unfolds …. (I hold)

VML never jumps in straight lines and has had long periods of Accumulation in the past.

I hold so I watch it closely. Last couple of days have seen interest with good accumulation today at 0.011

This might take another month, but it is positive price action for this little minnow

 

[barney]

I hold so I watch it closely. Last couple of days have seen interest with good accumulation today at 0.011 This might take another month, but it is positive price action for this little minnow

Under a week and the Accumulation went to the 0.012 's today with over 4 million shares traded at 0.013 in the after market auction ….. This is how it normally trades before it moves … positive price action

 

[barney]

Accumulation went to the 0.012 's today with over 4 million shares traded at 0.013 in the after market auction ….. This is how it normally trades before it moves … positive price action

A month later and price action is still following the expected path … tight ranging with what appears accumulation going on at each level.

Today's Volume was a bit higher at 24 million shares traded but that is good accumulation V for this minnow …. The lack of Ultra high Volume is positive at this point.

Market is expecting an update sometime in November on the JORC 2012 conversion to Oz standards.

That in itself will not be a huge catalyst for price movement but I expect some positive response to what should be good news.

The Company expects to release a JORC 2012 Resource for the North T and Tardiff Zone in November 2019. In addition, the Company intends to ultimately convert the full 149.3Mt resource into JORC status in due course

 

[barney]

These guys are well on the way to a low cost mechanical sorting method to obtain 35% REO ….. Early days, but this could be very lucrative given the minimal plant cost requirements … interesting times ahead.

 

[barney]

It may be a slow boat to China but the ducks are lining up nicely here.

All three Directors buying on market yesterday.

Evan Cranston the largest order buying 15,000,000 shares at $180,000 which means he increased his current holding 10X …. (at 12 cents per share)

Phil Coulson topped up with another 5,000,000 at $60,000

And Zane Lewis bought 9,000,000 at $96,000

Directors buying means we will likely have to wait a month before any news, so hopefully mid January might see some interesting developments with their Rare Earth deposits.

 

[barney]

Directors buying means we will likely have to wait a month before any news, so hopefully mid January

Nothing moves quickly with VML but its my pick in the January monthly comp. I am hoping the recent Director buying might be a prelude for some news later in the month.

 

[barney]

Nothing moves quickly with VML but its my pick in the January monthly comp. I am hoping the recent Director buying might be a prelude for some news later in the month.

Bugger all trading on VML at the moment and current sitting at 0.011

It has the occasional habit of calm before the storm ….. 7 Trading days till the end of January. Patience is a virtue.

 

[barney]

Bugger all trading on VML at the moment and current sitting at 0.011
It has the occasional habit of calm before the storm ….. 7 Trading days till the end of January. Patience is a virtue.

Nothing has changed since last month price wise but management are progressing their hopeful low cost entry into the Rare Earth space.

Drilling programme set down for Feb/March in the larger Tardiff zone.

Contracts in place to enable site establishment works to commence on site in March 2020 with the mobilisation of the ore sorter to site in July 2020.

We have the Ex-Lynas lads running the show and management have a lot of skin in the game. Slowly coming together.

My pick for the Feb Monthly comp.

 

[barney]

Request for Trading Halt

Vital Metals Limited (Vital or the Company) hereby requests a trading halt from the ASX effective immediately, pending an announcement by the Company regarding material exploration results.

The trading halt is requested until the earlier of the release of the announcement or prior to the commencement of trading on Wednesday, 19 February 2020.

Share price has been wading around in the shallow end for a long time. There is no doubt that the grades/resource is/will be good. Whether the market gets on board at this early stage is an unknown, but I think they will have their day in the sun down the track.

They have cash in the bank but will need more to develop the resource so a final cap raise before any serious re rate seems likely. I doubt they would have any trouble raising cash given the calibre of the Directors running the operation. (Holding)

 

[barney]

Cut and paste of the results … slightly abbreviated

These results from the starter pit give the Co a chance at early cash flow with minimal expenditure which is a rare things for a rare earths Co ……

Market is still back offish due to the early stage Spec nature of the Stock, but with a market cap of only $20 million I see a lot of potential. Happy to hold.

Vital intersects ultra-high grade, near-surface REO at Nechalacho

● Ultra-high grades – among highest grades of rare earth projects globally at North T starter pit

● Best results include:
○ 2.4m at 38.4% total rare earth oxides (TREO) (8.1% Nd Pr) from 13m
○ 5.1m at 22.9% TREO (5.2% Nd Pr) from 12m
○ 5.4m at 19.0% TREO (4.3% Nd Pr) from 2m
○ 2.4m at 29.6 %TREO (6.9% Nd Pr) from 26m

● High value Nd/Pr content of rare earths estimated at impressive level of 23.5% TREO

● Extensive bastnaesite mineralisation intersected that is amenable to concentration into 35%+ via conventional ore sorting technology with excellent metallurgical characteristics with 97% recoveries

● All intersections contained within 30m of surface

● Results to be incorporated into an updated JORC resource due before end of Q1 2020.

 

[barney]

I continue to accumulate VML with a longer term view. Not expecting too much action for the next few months but happy to build a large holding while it waffles around at these silly prices.

Once the current Virus issues work their way through the market I see their Rare Earths project as a potential big winner for S/H's

Pina coladas on the beach in a couple of years if all goes to plan … baked beans on toast if not

 

[barney]

I continue to accumulate VML with a longer term view.

Continued to accumulate at .005 .006 and .007

Good news from Lynas today might bring some added attention to VML with LYC being awarded a Phase 1 contract from the US Dept. of Defence.

The US will be looking for suitable Rare Earths projects and VML could find themselves in the middle of a perfect storm over the next 12-24 months.


Low risk Spec play in my view. Holding.

 

[barney]

As mentioned above, the Lynas SP continues to recover up again today.

The VML lads are quietly getting on with business with some more mining approvals announced today ahead of a Presentation tomorrow. Hopefully they can get on board the rare earths wave over the next couple of years.

HIGHLIGHTS
• Vital receives key government approval amendments to existing permits to enable development of North T zone
• Approvals received to operate open pit mine at North T and a crushing and ore sorting facility to produce high grade (35%+) rare earth concentrate
• Amendments to the existing Water License to accommodate the proposed operation have approved by the Mackenzie Valley Land and Water Board (MVLWB)
• All required regulatory and environmental approvals to enable the development of an operation processing material from the North T Zone are now in place enabling rare earth concentrate production once a decision to mine has been reached.

 

[noel_ferg]

Thought I'd share - tomorrow at 1pm VML's MD Geoff Atkins will presenting on the Thor Lake Rare Earth Project in Canada at the NWR Virtual Resources conference. Great lineup of other ASX companies there as well - https://www.shareguide.com.au/nwr-virtual-small-cap-conference-resources