VML - Vital Metals

[barney]

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?

All good @Chronos-Plutus ... I appreciate yours and @Dona Ferentes input on the thread (Its been lonely in here for a while lol)

Going back a while I noted Phil Coulson buying substantial amounts of VML. Probably fair to surmise that he knows the ex-Lynas lads well (my opinion).

If a cap raise .... Assuming the Board get involved, I would be in ... but I more suspect a debt facility arrangement to get this off the ground, therefore minimal dilution.

Best case scenario, the current Ex-Lynas Board fund the production stage. SP would get a serious lift from that, particularly if they have Offtake agreements in place which I expect they will.

Currently a puzzle, but a puzzle I can see some sense in See how it eventuates over the next few months. Specs are generally Scotch fillet or baked beans

 

[barney]

ps Worked in Leichardt in Sydney when I was a whipper snapper ... now I am just an old has been lol

 

[Chronos-Plutus]

All good @Chronos-Plutus ... I appreciate yours and @Dona Ferentes input on the thread (Its been lonely in here for a while lol)

Going back a while I noted Phil Coulson buying substantial amounts of VML. Probably fair to surmise that he knows the ex-Lynas lads well (my opinion).

If a cap raise .... Assuming the Board get involved, I would be in ... but I more suspect a debt facility arrangement to get this off the ground, therefore minimal dilution.

Best case scenario, the current Ex-Lynas Board fund the production stage. SP would get a serious lift from that, particularly if they have Offtake agreements in place which I expect they will.

Currently a puzzle, but a puzzle I can see some sense in See how it eventuates over the next few months. Specs are generally Scotch fillet or baked beans

At the moment I think it is worth a play; however I have to do more research before I commit to a position.

~30% of the shares are held by High Net Worth investors. So my assumption is that these guys want VML to go all the way to production and will hold; which helps.

 

[Chronos-Plutus]

ps Worked in Leichardt in Sydney when I was a whipper snapper ... now I am just an old has been lol

Haha; Leichhardt has changed dramatically over the last ~15 years. The suburb demographics have definitely changed substantially.

More Irish ancestry than Italian in Leichhardt these days according to the 2016 ABS:

Also Chinese languages are being more commonly spoken:

2016 Leichhardt (NSW), Census All persons QuickStats | Australian Bureau of Statistics

quickstats.censusdata.abs.gov.au

 

[frugal.rock]

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

Hahahaha, an old guitarist pretending that he don't know....
Pic your g string outta the crack....
Then play your geeetar with a G pic... A glass pic


I think the clue is in the company name... "Vital"....
It's Vital.

As for Leichhardt, good luck getting a car park spot, and not stepping in dog shite on footpaths. Balmain is the worst though.....

 

[barney]

Then play your geeetar with a G pic... A glass pic As for Leichhardt, good luck getting a car park spot, and not stepping in dog shite on footpaths. Balmain is the worst though.....

Lol .... Didn't twig, but I am old and dopey now days Best sounding pick I ever used was an old worn 10 cent piece Can't pick as fast with it, but the tone is magic ...... regular string replacement required afterwards however lol.

I used to travel from East Hills to Leichardt to work every morning .... that was fun .... no doggy doo on the train though.

@Chronos-Plutus ..... The point you make re the High Net S/H's is a good one. With the retailers only holding about 40% the number of SOI becomes less of a problem trading wise.

VML has a history of jumping, then reversing into a trading range/retracement for extended periods. At the moment it has had a little run so its in limbo. There might be some long term resistance if it can eventually get back to 025, but that is where the action might really start.

Offtake arrangements will likely be the next catalyst for some movement .... Watch the paint dry till then.

 

[barney]

OK Fess up ... Which one of you guys has been buying this up today!

If this is a cunning plan to try and get me excited it won't work. Over 025 on the other hand it could be my shout

(ps maybe Just a little excited)

 

[Dona Ferentes]

I can only admit that my offer to buy some is becoming less and less likely to eventuate....

 

[Dona Ferentes]

Vital Metals and Saskatchewan Research Council have signed a binding Term Sheet to negotiate definitive agreements for the construction and operation of a Rare Earth Extraction Plant to produce a mixed rare earth carbonate product

• In August 2020, the Government of Saskatchewan and the Saskatchewan Research Council announced a C$31 million funding package for the construction of Canada’s first Rare Earth Processing and Separating Facility in Saskatoon, Canada
• Vital’s Rare Earth Extraction Plant is planned to be located adjacent to SRC’s Separation Plant which will convert mixed rare earth carbonate to commercial grade separated rare earth oxides
• SRC’s facility will require mixed rare earth carbonate product for separation making Vital a likely customer
• Capital cost estimate of the Rare Earth Extraction Plant is A$5.25M
•

 

[barney]

• In August 2020, the Government of Saskatchewan and the Saskatchewan Research Council announced a C$31 million funding package for the construction of Canada’s first Rare Earth Processing and Separating Facility in Saskatoon, Canada
• Vital’s Rare Earth Extraction Plant is planned to be located adjacent to SRC’s Separation Plant which will convert mixed rare earth carbonate to commercial grade separated rare earth oxides
• SRC’s facility will require mixed rare earth carbonate product for separation making Vital a likely customer

They obviously have a good working relationship with both Government and the locals. Having the processing facility basically next door will be another cost saver.

The market didn't get too excited about todays Announcement but for longer term holders its just another box being ticked.

Company again mentioned that Offtake agreements are well advanced with several Non-Chinese parties. When that Announcement finally arrives I'd expect a bit more trader involvement .... Sitting patiently.

 

[Dona Ferentes]

HOP ON POP, as Dr Seuss would say.

good volume going through today... strong buying up to 24c .... so far

 

[barney]

HOP ON POP, as Dr Seuss would say. good volume going through today... strong buying up to 24c .... so far

Lol ..... this is one I'm glad I hopped on early ... I actually bought more earlier at 022 The word seems to have gotten around the lunch tables with a lot more action this arv. Still early days for the Company. They seem to know how to swing a deal though with the Government backing their plans!

A bit of late profit taking wouldn't surprise given plenty of Punters are + ... On the flip side, there seems to be plenty of new Buyers showing interest so who knows ... Hopefully make up for a couple of my other failures recently.

 

[barney]

If a cap raise .... Assuming the Board get involved, I would be in ... but I more suspect a debt facility arrangement to get this off the ground, therefore minimal dilution.

Best case scenario, the current Ex-Lynas Board fund the production stage. SP would get a serious lift from that, particularly if they have Offtake agreements in place which I expect they will.

As intimated, a Cap Raise is now on the table ... to be expected, and possibly timely given the recent price action.

My guess would be between 02 and 022 for the CR price but that is just a guess.

In a perfect world where I can become a gazillionaire, they will raise at a premium to market just prior to announcing Offtake agreements to the some big players including the Canadian Gov once the get their Plant up and running next door.

C/R's are normally a bit destructive. VML have asked for a double sized Trading Halt to get this one sorted. The details could be both interesting and revealing. Happy to sit and watch the walls for a few days

 

[Dona Ferentes]

As intimated, a Cap Raise is now on the table ... to be expected, and possibly timely given the recent price action. My guess would be between 02 and 022 for the CR price but that is just a guess.

C/R's are normally a bit destructive. VML have asked for a double sized Trading Halt to get this one sorted. The details could be both interesting and revealing. Happy to sit and watch the walls for a few days

looking for $8million priced at 2¢ a share, which represented a 20 per cent discount to Vital Metals' last close and a 13.2 per cent discount to the five-day VWAP.

Potential investors were told the money raised would be used to finance a plant for ore sorting and associated equipment, among other things.

so, a SPP for retail, to follow?

 

[barney]

looking for $8million priced at 2¢ a share, which represented a 20 per cent discount to Vital Metals' last close and a 13.2 per cent discount to the five-day VWAP. Potential investors were told the money raised would be used to finance a plant for ore sorting and associated equipment, among other things. so, a SPP for retail, to follow?

Thanks D-F .... My inside "oil" says something similar

That makes my purchase the other day at (022) at a premium to what i could get in an SPP Lol ..... not to worry.

I am happy if its a small C-R .... They need a few bob to get this up and running, so that means they will only dilute as appropriate.

Smart guys in management who are trying to set themselves up for life (and beyond I expect)

C-R's often stall an SP ... I doubt this will be the case for too long with these chaps.

Onwards and Upwards from here we hope!! ... hopefully not this guy Lol

 

[Dona Ferentes]

VML has received firm commitments to raise A$8.0 million (before costs) in new equity via a fully committed share placement to institutional, sophisticated and professional investors. The Placement comprises the issue of approximately 400 million new shares in the Company at an issue price of A$0.02 per Share.

Net proceeds from the Placement will primarily be used to progress the Company towards commencing processing operations in Q2 CY2021 including the purchase of the ore sorter, sampling and met testwork, extraction plant EPCM and for general working capital.

Strong demand for the Placement resulted in additional funds being raised which will be used to accelerate further exploration and development work at the Tardiff zone within the Company’s Nechalacho Project. Vital Metals’ Managing Director, Geoff Atkins, commented:

“We are pleased with the support from new investors and existing shareholders. This equity funding coupled with the recent announcement that Vital has executed a binding term sheet to construct its rare earth extraction facility adjacent to Canada’s first rare earth separation facility underpins Vital’s plans to become the World’s newest independent supplier of clean rare earth feedstock outside China. "

 

[barney]

Strong demand for the Placement

Usually a Bar like today could be seen as negative but given the Cap Raise was at 2 cents, today's close at 3 ticks higher on high Volume indicates this could be a pivotal level/new base.

There were plenty of Shares changing hands at 024 and 025 plus there was plenty of opportunity for profit takers or weaker hands to opt out if they wanted.

Back above 025 in the short term would be super bullish.

 

[barney]

My monthly Comp pick for October. Price has held up well since the Cap Raise announcement a couple of days ago (020 cents).

SP pushed back to 026 at the close today but most recent Volume has been in the 024-025 range which looks the new base.

Supply looks to be thinning. Positive news could easily see further rises given the above.

Annual Report out after hours with everything tracking along nicely for planned production starting next year.

Plenty of upside given market cap is still modest at around $56-58 million

Holding and keen to see if we can break the 3 cent level in the near term.

 

[frugal.rock]

Good one B.
I breathed on VML this morning and failed to consider my options with enough haste. I'm old and my bones are weary...

 

[barney]

Holding and keen to see if we can break the 3 cent level in the near term.

I know I've been harping on about this one forever, but it looks like the word is getting out now .....

With all the ex-Lynas boys in control and looking likely to be the next Rare Earths Company into production.

It had to move eventually. Hope a few ASFers got on board before the train got rolling

035 level looks fairly solid and having a dabble at 036-037 .... Still have Off-Take agreements to formalize yet, so more room to move