VML - Vital Metals

[barney]

Low risk Spec play in my view. Holding.

Interest in this little Spec seems to be returning with some handy orders going through the market recently. Still needs to break old resistance at 1.5 but creeping up on it slowly.

 

[barney]

My pick for this Months Comp. Still ranging at current levels, but the occasional large trade has been mopping up at the 1.1 cent area.

Slow mover but I am a longer term holder so price action is still ok for patient punters

 

[barney]

Time frame of 2021 for first production with a remaining $4 million to spend on set up. That will be some kind of record on both time and costs if they manage to do as planned.

Current market cap of $23 million. If they are producing before end of next year, a serious re-rate in their share price is a big possibility imo. Holding patiently.

Link to announcement below

https://cdn-api.markitdigital.com/a...pdf?access_token=muqBcwPLKs93XnGOAhx5frFEX9Od

 

[barney]

Current market cap of $23 million.

Market Cap still only around $30 million. Nice Orders going through recently and up today with 0.013 line wiped earlier.

Often retraces after sharp rises but I don't mind the slow boat to China approach.

ps You still in @noel_ferg ??

 

[barney]

After 2 years the plan looks like coming together. Patience is a virtue they say

Expecting it to cool off a bit now hopefully holding 1.7 or above.

They will need funding of some sort not too far down the track but if the Project numbers add up I think they will have plenty of parties interested in getting involved.

The Canadian Government is keen, selecting VML in their Accelerated Growth Services Program (AGS).

 

[frugal.rock]

Bought in at 0.017 today on a minor pullback.
It may pullback further, or it may breakout. Price and volume indicate my interest.
Either way, I trust @barney and his FA b due diligence.

 

[barney]

Price and volume indicate my interest.
Either way, I trust @barney and his FA b due diligence.

Goddam Rock .... Now I am under real pressure

 

[frugal.rock]

Goddam Rock .... Now I am under real pressure

Don't sweat it, I have a process of pre-approval of a stock by FA regardless of whether I buy or not based on TA.
So, your due diligence is enough for me to tick the ethical, it stands a chance, FA box.
I bought in based on TA.
I don't have time to read everything... and deciphering noise and signal and claptrap comes easy with reading your posts.

 

[barney]

and deciphering noise and signal and claptrap comes easy with reading your posts.

Anyone who can decipher what I babble on about is obviously a gifted individual

ps I can recommend a good psychologist

VML currently in retrace mode ... didnt really want to see 0.015 but the market depth is still favorable at the current level, and given the high Volume that went through at .017 a 10% slip was probably to be expected. Its a slow burner so not for impetuous Traders, but I like that.

Long term positives for the Stock are very high. They will need cash before the short term development can become cash producing but that is a mere $20 million which is unheard of for a high value Rare Earths project. ( I expect a Debt Funding arrangement, but they may do a Cap Raise in the short term to tide them over to mid next year ..... I expect that would be well supported)

First 1-3 years will produce enough cash to develop what the Co expects to be a 20 year, 5000 tonne per year REO project.

Initial Offtake agreements should be close to finalization (3rd Quarter this year).

Preso out today

https://cdn-api.markitdigital.com/a...pdf?access_token=J2rFjWoOZop6vsquuCxecEEObNoY

 

[Dona Ferentes]

There is an avalanche of shares waiting in the wings. From the original Cheetah acquisition Vital agreed to acquire 100% of the issued capital of Cheetah for the consideration outlined and is comprised of the following:
- Issue of 400,000,000 fully paid ordinary shares on completion;
- Issue performance shares comprised of the following:
(i) 400,000,000 Tranche 1 Performance Shares which will convert into Ordinary Shares in the Company on entering into binding offtake for a minimum of 1,000 kgs of contained REO in respect of the Thor Lake Project or Wigu Hill Project within 2 years of the Acquisition completion date; and
(ii) 400,000,000 Tranche 2 Performance Shares which will convert into Ordinary Shares in the Company on commencement of mining operations at the Thor Lake Project or Wigu Hill Project.

Ordinary fully paid shares (VML) at the time 1,742,611,288 and options in the near future included (more in 2025 + incentive shares):
2.0 cent options expiring 30 April 2021 ... 50,000,000
2.3 cent options expiring 30 April 2021 ... 27,000,000
1.0 cent options expiring 17 Nov 2021 .... 25,000,000
Some options have converted and at end Aug 2020 VML fully paid ordinary shares total 2,155,111,289

As well as the Wigu project in Tanzania, primary focus is on Thor Lake Rare Earth Project (Canada) (acquired 100%, surface to 150m above sea level rights)
- Mining leases, environmental and water approvals granted
- Environmental permit and water licence in progress
- NI 43-101 defined Indicated and Inferred Resource
- The Nechalacho Property, of which the Thor Lake Project is a part, has been the subject of over $120M spent by Avalon Advanced Materials , the previous owners, on drilling, permitting and project development at Nechalacho, & which includes a 40-person camp and airstrip.

 

[Chronos-Plutus]

There is an avalanche of shares waiting in the wings. From the original Cheetah acquisition Vital agreed to acquire 100% of the issued capital of Cheetah for the consideration outlined and is comprised of the following:
- Issue of 400,000,000 fully paid ordinary shares on completion;
- Issue performance shares comprised of the following:
(i) 400,000,000 Tranche 1 Performance Shares which will convert into Ordinary Shares in the Company on entering into binding offtake for a minimum of 1,000 kgs of contained REO in respect of the Thor Lake Project or Wigu Hill Project within 2 years of the Acquisition completion date; and
(ii) 400,000,000 Tranche 2 Performance Shares which will convert into Ordinary Shares in the Company on commencement of mining operations at the Thor Lake Project or Wigu Hill Project.

Ordinary fully paid shares (VML) at the time 1,742,611,288 and options in the near future included (more in 2025 + incentive shares):
2.0 cent options expiring 30 April 2021 ... 50,000,000
2.3 cent options expiring 30 April 2021 ... 27,000,000
1.0 cent options expiring 17 Nov 2021 .... 25,000,000
Some options have converted and at end Aug 2020 VML fully paid ordinary shares total 2,155,111,289

As well as the Wigu project in Tanzania, primary focus is on Thor Lake Rare Earth Project (Canada) (acquired 100%, surface to 150m above sea level rights)
- Mining leases, environmental and water approvals granted
- Environmental permit and water licence in progress
- NI 43-101 defined Indicated and Inferred Resource
- The Nechalacho Property, of which the Thor Lake Project is a part, has been the subject of over $120M spent by Avalon Advanced Materials , the previous owners, on drilling, permitting and project development at Nechalacho, & which includes a 40-person camp and airstrip.

True; it wouldn't look half-bad if there wasn't another ~1.3 billion shares flooding in when there is already ~2.1 billion shares on issue:

VML share price and company information for ASX:VML

View today’s VML share price, options, bonds, hybrids and warrants. View announcements, advanced pricing charts, trading status, fundamentals, dividend information, peer analysis and key company information.

www.asx.com.au

 

[barney]

There is an avalanche of shares waiting in the wings. From the original Cheetah acquisition Vital agreed to acquire 100% of the issued capital of Cheetah for the consideration outlined and is comprised of the following:

Thanks for the input D-F .... No doubt there will be a lot of Shares on issue, but their low SP means even with a 100-1 share consolidation in the future, the SP would still be small.

Phil Coulson's involvement in teaming up with the Ex-Lynas lads who generated "Cheetah" for one purpose only (to become the next Lynas ... their words not mine lol ) , gives me a lot of confidence that these chaps are on a mission.

I hope all the Cheetah boys become filthy rich so I can become slightly more financially independent than at present riding on their coat tails Nothing ventured, nothing gained Cheers.

 

[barney]

True; it wouldn't look half-bad if there wasn't another ~1.3 billion shares flooding in when there is already ~2.1 billion shares on issue:

Lol ... You guys worry too much about SOI ... Do I look worried with my Hi-ace full of Shares

Dare I draw the long bow and mention that BHP has over 2.5 billion SOI ...... VML will be fine, trust me

 

[Dona Ferentes]

From the original Cheetah acquisition:
- Issue of 400,000,000 fully paid ordinary shares on completion;
(i) 400,000,000 Tranche 1 Performance Shares
(ii) 400,000,000 Tranche 2 Performance Shares
Ordinary fully paid shares (VML) at the time 1,742,611,288 and options in the near future included (more in 2025 + incentive shares):
Some options have converted and at end Aug 2020 VML fully paid ordinary shares total 2,155,111,289

I believe August follows July. VML fully paid ordinary shares total 2,155,111,289 .... It's all there in the 2A of 24 Aug

@barney . I like the fact, as you point out, it will be a cheap outcome to get the 1,000 Tonne , as the early work is done, but who is going to process it?

Vital aims to be the largest independent supplier of clean mixed rare earth feedstock outside China.

 

[barney]

I like the fact, as you point out, it will be a cheap outcome to get the 1,000 Tonne , as the early work is done, but who is going to process it?

Cheers D-F

Currently VML are in a pivotal position ..... Management are expected to announce some Offtake arrangements in the near future. (And hopefully some SP impetus off the back of that )

I assume given they will be producing a "first stage" product, that they will be able to sell that to basically anyone with a processing plant, so their likely customers will be whoever offers them the best deal.

Worth bearing in mind that the majority of Rare Earths projects do not have the luxury of being able to produce that same "first stage" product as VML will due to the nature of their deposits.

Having the Lynas lads on board (Cheetah) means that they have cherry picked the most appropriate deposits to make the proposed production a reality.

Anyone reading my enthusiasm needs to also bear in mind i have been accumulating VML for a fair while so my buy in price is pretty good. Anyone considering buying in from this point in time needs to apply appropriate trading filters lest he or she be belted unceremoniously to the ends of the earth ... or to Leichardt, whichever is closer Apologies to anyone living in Leichardt ... I used to work there and its not so bad lol.

 

[Dona Ferentes]

is that a cane, or a G-Pick?
(Young geologist getting the discovery into production)

 

[barney]

Lol .... Whatever a G-pick is (Gold- Goannas-Precious Gems? lol)

Now big "Green Smiley Face" is no longer with us, I have found a new friend ... "Old Man Happy" doe not lie ... he just lies down ... often (that's his Brother)

 

[Chronos-Plutus]

Lol ... You guys worry too much about SOI ... Do I look worried with my Hi-ace full of Shares

Dare I draw the long bow and mention that BHP has over 2.5 billion SOI ...... VML will be fine, trust me

I am not talking the company down; just saying that they are using up a great deal of their ammo (share dilution).

Will they still need to do a few CRs before they get to production?

I posted earlier today (TSO) that I like it when companies have milestone incentive performance rights for the management team. So I don't have a problem if the entity is being diluted; under the right conditions that will deliver results.

 

[Dona Ferentes]

Lol .... Whatever a G-pick is (Gold- Goannas-Precious Gems? lol)

G-pick... Geologist's Tool of trade. Rock Doctor 101. That and Arthur Holmes "Principles of Physical Geology" were mandatory purchases in Geol 1 under Prof S W Carey

(just learned its now called a rock pick)

 

[Chronos-Plutus]

Cheers D-F

Currently VML are in a pivotal position ..... Management are expected to announce some Offtake arrangements in the near future. (And hopefully some SP impetus off the back of that )

I assume given they will be producing a "first stage" product, that they will be able to sell that to basically anyone with a processing plant, so their likely customers will be whoever offers them the best deal.

Worth bearing in mind that the majority of Rare Earths projects do not have the luxury of being able to produce that same "first stage" product as VML will due to the nature of their deposits.

Having the Lynas lads on board (Cheetah) means that they have cherry picked the most appropriate deposits to make the proposed production a reality.

Anyone reading my enthusiasm needs to also bear in mind i have been accumulating VML for a fair while so my buy in price is pretty good. Anyone considering buying in from this point in time needs to apply appropriate trading filters lest he or she be belted unceremoniously to the ends of the earth ... or to Leichardt, whichever is closer Apologies to anyone living in Leichardt ... I used to work there and its not so bad lol.

Leichhardt in Queensland?