VML - Vital Metals

[over9k]

That's quite a bit of skin in the game spratty. Or did you buy early?

 

[spratty84]

That's quite a bit of skin in the game spratty. Or did you buy early?

Got some early on, probably a bit to keen lol but honestly i can see a big run on rare earths in the medium to longer term future and vml is looking one of the more promising prospects.

 

[barney]

Mind me asking how many shares you have @barney? I'm thinking about a topup.

Hi @over9k

I would never want to sway anyone else's investing decisions based on my own "unorthodox" way of doing things

However, I can say honestly that my most recent purchase of VML of 100,000 shares at 5.3 cents (documented) was a small top up.

My medium term plan has always been for VML to get to 10 cents (hopefully + 10 cents) and hold value at that level

At that point I will re-assess the next phase

So in essence, I am looking/hoping for a 90% return from present with what I consider fair/low risk.

Time required = 12-18 months ... I could be totally wrong of course

Cheers M8, and good luck no matter what you decide.

 

[waterbottle]

Agree with the comments above.

Thanks for the videos @barney , they reinforce my thoughts about a future expansion plan for VML.

I think it's critical to reinforce the fact that what VML is doing here isn't just digging holes in the ground and producing ore - they're creating a supply chain, as alluded to in the video, that will form part of the critical infrastructure for the electrification of the Western hemisphere. More importantly, they're now the first producer in Canada to have done so and are only one of 2 (or maybe 3) companies that have successfully managed to do so in North America. They're well capitalised with a management team that has a proven track-record, both whilst working for a competitor (Lynas) and over the past year as they've nurtured Vital Metals.

Geopolitically, the Western world continues to turn away from China. The US under Trump has identified critical minerals that must be secured (rare earths included) and have recognised Canada as a potential source. Likewise, the EU has a similar policy and also identified Canada as a potential source for rare metals.
VML is well-positioned to profit as these policy changes continue to develop. They have an established off-take agreement with an EU-member state (REEtec). They have received funding from the Canadian government, who also recognises the importance of rare earths and securing critical minerals. They will have a future processing plant constructed & positioned literally next-door to a government-funded research institution (Saskatoon Research Council), with the latter being funded by the Canadian government to develop their own rare earth processing facility & methods.

Economically, the price of rare earths have admittedly taken a beating over the past 6 months. Whether or not that trend will continue is unknown. My thoughts are that current prices (as set by Shanghai) will be irrelevant once the Western world transitions away from China for its supply of critical minerals.
In fact it's happening with Lithium - a metal critical for EV batteries. The financial world has recognised the increased demand & importance of lithium through the introduction of futures contracts, introduced by CME only as of May 2021.
The potential exists for a market ex-China, although I suspect that the CCCP will try to maintain its status as a price setter via some manner of market manipulation until it no longer can (and why wouldn't they considering their 80% stranglehold on the market).

 

[frugal.rock]

electrification of the Western hemisphere.

I can't stop laughing.... ?

I say "Poppycock" !
(best said with a South Afrikaan eccent.)

 

[barney]

- they're creating a supply chain, as alluded to in the video,

They have an established off-take agreement with an EU-member state (REEtec).

Nicely abbreviated above @waterbottle

Just on the Off-take, it's also worth noting again for anyone that doesn't realise, that the arrangement with REEtec is a shared deal where both Companies split all aspects of the supply chain profits once each takes out their initial "cost of production". This is a one of a kind deal where both Companies benefit from the others abilities.

I also like the way Geoff Atkins is indicating planning/implementation of Stage 2 ramp up is already on the agenda even before our first ore has been processed (end of year) in Stage 1 (Demonstration Plant - 1000 t/annum to REEtec etc.)

Long way to go yet before any profits will be generated but so far everything is going to plan. In a perfect world, we get the Saskatoon plant up and running, REEtec confirm the quality of our Product over a period of time and increase their Offtake amount to double/triple/more?

Once that is achieved (12-18 months but that is just a guess), Stage 2 production could ramp up really quickly and that's when real profits will start to be generated.

In the short term, we have a lot of SOI which need to be absorbed at various profit levels before any SP rises can follow. If 5 cents or higher continues to hold/be accumulated, all is fine.

 

[frugal.rock]

However, I can say honestly that my most recent purchase of VML of 100,000 shares at 5.3 cents (documented) was a small top up.

Mind me asking how many shares you have @barney? I'm thinking about a topup.

You're like a politician....
an answer that doesn't answer the question... ??

 

[barney]

You're like a politician....
an answer that doesn't answer the question... ??

Lol .... I thought I did quite well I was truthful, mildly cryptic, but did not kiss and tell

Politicians aren't that smart Rock, lol

 

[Beaches]

You're like a politician....
an answer that doesn't answer the question... ??

The question should never have been asked
.

 

[frugal.rock]

The question should never have been asked
.

Ah, it's all beer, bourbon, scotch etc and BBQ chicken sausages around here.... no harm asking awkward questions of others whilst shooting the breeze standing around the BBQ... Barney wandered off muttering something about needing to tune his
G string or something or other... ?
Chicken snags are burnt again...

 

[over9k]

The question should never have been asked
.

Rubbish. It's a good gauge of just how much digging someone has done. I'm not going to take seriously someone that only has a thousand bucks in something. Hence why when I make a small buy I make a point of saying if I just bought a minimum trade ($500) or whatever in many of the pure degen spec threads out there.


But 100x that?

Yeah, then I know you've actually looked into it properly.

 

[barney]

The question should never have been asked

Nah its fine @Beaches but I do appreciate your sentiment/respect of privacy

if I just bought a minimum trade ($500) or whatever ........ But 100x that?

@over9k I understand why you asked and have no problem with the question, but it would be wrong of me to give specifics just in case it caused someone (not yourself) to make an Investment decision based on the Volume of my holding, rather than their own research, so to speak. If they did that and the SP tanked, neither they nor I would be happy, lol

ps. For the record and my own credibility, I can cover your above mathematical equation but cannot divulge specifics



Back to Rare Earths: Yesterday's general uptick across the board was reversed today unfortunately.

Bell weather Lynas was down and VML still has Supply to deal with by the looks

Above 5 cents is still a good benchmark for the moment in my view as long as it holds

 

[frugal.rock]

Expected a bit of rub off from Lynas today (up ~9%), not forthcoming as of yet...
Volumes have been a bit subdued of late.
Consolidating for the next news pop?
Still holding.

 

[barney]

Expected a bit of rub off from Lynas today (up ~9%),

Kind of expected the same Rock. Sometimes the Specs follow a day or two later than the big fish so I'm still happy to see Lynas on the move

It looks to me like the traders have left the VML building for easier fish to fry in the short term (this is starting to sound s bit fishy, lol)

Short term opinion on (the messy ) Chart below .

Not too concerned re the S/term but definitely like to see some Accumulation above the recent higher Low

 

[spratty84]

Kind of expected the same Rock. Sometimes the Specs follow a day or two later than the big fish so I'm still happy to see Lynas on the move

It looks to me like the traders have left the VML building for easier fish to fry in the short term (this is starting to sound s bit fishy, lol)

Short term opinion on (the messy ) Chart below .

Not too concerned re the S/term but definitely like to see some Accumulation above the recent higher Low View attachment 127923

Kind of expected the same Rock. Sometimes the Specs follow a day or two later than the big fish so I'm still happy to see Lynas on the move

It looks to me like the traders have left the VML building for easier fish to fry in the short term (this is starting to sound s bit fishy, lol)

Short term opinion on (the messy ) Chart below .

Not too concerned re the S/term but definitely like to see some Accumulation above the recent higher Low

Kind of expected the same Rock. Sometimes the Specs follow a day or two later than the big fish so I'm still happy to see Lynas on the move

It looks to me like the traders have left the VML building for easier fish to fry in the short term (this is starting to sound s bit fishy, lol)

Short term opinion on (the messy ) Chart below .

Not too concerned re the S/term but definitely like to see some Accumulation above the recent higher Low View attachment 127923

Kind of expected the same Rock. Sometimes the Specs follow a day or two later than the big fish so I'm still happy to see Lynas on the move

It looks to me like the traders have left the VML building for easier fish to fry in the short term (this is starting to sound s bit fishy, lol)

Short term opinion on (the messy ) Chart below .

Not too concerned re the S/term but definitely like to see some Accumulation above the recent higher Low View attachment 127923

T

Kind of expected the same Rock. Sometimes the Specs follow a day or two later than the big fish so I'm still happy to see Lynas on the move

It looks to me like the traders have left the VML building for easier fish to fry in the short term (this is starting to sound s bit fishy, lol)

Short term opinion on (the messy ) Chart below .

Not too concerned re the S/term but definitely like to see some Accumulation above the recent higher Low View attachment 127923

Today was interesting for rare earths, my holding in ntu had a nice nudge along today but i saw it as an opportunity to add a parcel to my vml holdings now im up to 500500 which is enough for me.

 

[barney]

Today was interesting for rare earths, my holding in ntu had a nice nudge along today but i saw it as an opportunity to add a parcel to my vml holdings now im up to 500500 which is enough for me.

Yeah NTU had a solid + 7% REE was the standout with +16% With Lynas at +10% it was a big day for the R/E sector in general

VML got a late push up on low volume but nothing like the others unfortunately.



REE had a tidy 47% resource upgrade 19th July Ann for a total 18.8 M/t @ 1.15 TREO (Market Cap = $45-50 million)


VML Stage 1 smaller North T deposit has a high grade resource of 101,000 tonnes at 9.01% LREO

VML Stage 2 "Upper Zone" has a (LREO) resource of 94.7 M/t @ 1.46 TREO (Market Cap = $210 million)


Mathematically that has the market valuing REE and VML at similar ratios after today.

Given the early Production time line Plus the ex-Lynas factor Plus the REEtec offtake partnership Plus the Canadian Gov support etc etc

I think VML will eventually get the edge over the other Spec R/E stocks. Holding patiently in the mean time.

 

[frugal.rock]

It looks to me like the traders have left the VML building for easier fish to fry in the short term (this is starting to sound s bit fishy, lol)

I disagree...
Saw distinct flush out trading action today.
Buying at 0.05, then price dropping back to 0.049 (ultra low vol) to leech out more selling suckers on 0.05
"Predatory" consolidation...

 

[barney]

I disagree...
Saw distinct flush out trading action today.
Buying at 0.05, then price dropping back to 0.049 (ultra low vol) to leech out more selling suckers on 0.05
"Predatory" consolidation...

You could well be right Rock. (I hope so

My comment may have been biased by VML lagging the other big risers early in the afternoon,

And me becoming an impatient grumpy old man, lol

The 5 cent level has appeared to have been re-populated consistently over the last few days as well, but if that finally gets gapped and we get back into the mid 5 region, I'll be with you 100%

I'm long term on this of course so as long as the recent swing Lows hold as support, you can call me Larry

Back under 4.5 anytime from now on and you can call me a Doctor! lol.

 

[barney]

My pick in the monthly comp.

Bit of selling into the Quarterly results yesterday. Everything still going to plan but cash is getting burnt quickly with the current ramp up

A few punters still happy to cash in their chips which is totally normal. Likely a slow burner from here but you never know.

 

[frugal.rock]

ASX / Media Announcement
3 August 2021

Vital intersects high-grade REO in Tardiff Zones 2 & 3 including
outside existing resource at Nechalacho

Highlights
● Vital completed 10 holes across Tardiff Zones 2 and 3 to define a Stage 2 Mine Plan for Nechalacho rare earths project in Canada, with all holes hitting extensive mineralisation

● Drilling at Tardiff Zones 2 and 3 intersected thick zones with total rare earth oxides grades above 2% TREO

● Best results from Zone 2 from the 5 drill holes include:
○ 25.1m at 3.03% TREO
○ 19.0m at 2.05% TREO

● All Zone 2 intersections are within 75m of surface with the best results in the western most drill holes, indicating high-grade TREO is open to the west

● Zone 2 high-grade TREO intercepts are outside the Upper Zone Mineral Resource, indicating potential for an additional high-grade TREO resource in the Tardiff area

● The remaining 5 holes drilled at Zone 3 also hit shallow, high grade REO intersections

● Best results from Zone 3 include:
○ 51.0m at 2.13% TREO
○ 36.7m at 1.96% TREO

● All 5 holes drilled in Zone 3 confirmed the high grades previously encountered with high- grade mineralisation open in all directions

● With high grade mineralisation remaining open at all zones, Vital will undertake additional drilling at Tardiff to delineate the boundaries of the three Tardiff high-grade zones in addition to identifying the relationships between the zones, including whether they are in fact connected.

● Previously announced metallurigcal results from Tardiff indicate that this bastnaesite mineralision can be processed through the same plant being constructed to process North
T ore


That's some pretty good news right there...should or rather hopefully give the SP a solid boost.