VRE - View Resources

[The Ferret]

Greetings to all on thread.

There is little doubt that VRE has been out of market favour for some time, due obviously to the BW issues.

As a holder of options in VRE I have been watching the market depth over the past 7 months very closely, as well as company progress/announcements etc. It's obvious that recently there has been some renewed interest in VRE as they sort out BW. There is great deal more buying pressure and the buyers now outnumber sellers. Frustratingly, there are still some holders selling the stock down which is taking a lot of steam out of the buying pressure. This situation is improving however.

I believe that the market is still waiting for some confirmation that the BW and cash issues are resolved. Selling CH stake to MCR will resolve the debt issue and will greatly assist in moving BW to cash positive. I believe that once VRE announce that BW is cash + there will be a re-rating of sorts. Also, once they achieve a 30k oz qtr this will also assist the SP greatly. We already know that January will not achieve the 10k oz target due to ore scheduling, so the Feb result will be important. IMO, once they achieve a successful qtr and the project becomes cash+ then the SP will make some very solid gains. In the interim the SP should react well to news that the CH sale has settled and that they have closed out all debt.

It’s been a long and difficult 8 months for VRE holders….. but the clouds are parting and sunny days are almost here. I cant wait.

 

[Bushman]

It’s been a long and difficult 8 months for VRE holders….. but the clouds are parting and sunny days are almost here. I cant wait.

Few more clouds on the horizon Ferret.

Ann today that January 2008 production of 6,500 oz will fall short of 10,000 oz and that quarterly forecast will suffer.

This management group are either wildly optimisitic or incompetent. Honestly.

But they are reviewing the operation today so it sounds like it will be blip rather than an endemic issue.

 

[jaffa]

It has been a long year or so.

Today's announcement does not provide much additional comfort. The result from Bronzewing looking well below plan. Perhaps concerningly it seems to be due to grade not throughput. Outlook for the quarter downgraded.

SP on the way down.....

Look to be taking a variety of tough steps.

Jaffa

 

[MS+Tradesim]

They also said the Carnilya Hill sale is close to completion. If that finalises fine, it will sort out their cashflow.

 

[treefrog]

It has been a long year or so.

Today's announcement does not provide much additional comfort. The result from Bronzewing looking well below plan. Perhaps concerningly it seems to be due to grade not throughput. Outlook for the quarter downgraded.

SP on the way down.....

Look to be taking a variety of tough steps.

Jaffa

Management is working to understand and resolve the grade short-fall.
this bit where directors effectively say we don't know why and we will have to think about it is major worry - akin so admitting we don't know what we are doing yet but hope to find out

 

[YOUNG_TRADER]

Whilst this news is dissappointing, ie that the production for January was 40% below expectations it is not lethal,

Why?

Like I said the 2 best parts for me given their a gold producer is

1. NO HEDGING =

2. NO DEBT =

So because there is no hedging, the company does not have to actually meet a specified production figure to satisfy hedging delivery requirments (although it is preferable obviously that the company beats forecasts)

The no hedging combined with the no debt (via the Carnilya sale) means that the company has the luxury of being able to cope with teething problems unlike companies like BMO, ARX, CRS GTM Sons Gwalia and so on

 

[YOUNG_TRADER]

Technically speaking 14c has always provided a very very strong support level for the last 4-5years

Hence I think that VRE will bounce off this low level once the panic settles,

I wouldn't be surprised to see some sort of commentary from Fat prophets to calm the mkt re View

 

[MS+Tradesim]

YT, I completely agree with you on the fundamentals.

SP-wise though, I don't know. In the current volatility and nervousness, fear and panic rule. Anything sniffing of negativity will be met with exaggerated sell-offs. I am holding but I don't know about a quick recovery.

 

[jaffa]

Young trader,

Don't disagree but we are down to 13cents SP.

This is not so good although I think I might take some.

This slide looks to me to be an overreaction to the announcement.

jaffa

 

[Bushman]

Young trader,

Don't disagree but we are down to 13cents SP.

This is not so good although I think I might take some.

This slide looks to me to be an overreaction to the announcement.

jaffa

Yep I agree it is an overreaction. From a look of the last qrt, they have a JORC of 896k oz supporting the original 5 year mine life and plenty of exploration upside which will be fully funded by the $25m they get from the nickel asset sale.

They had issues with the ore mix in November as well and missed the 10,000 oz. However in Dec they were able to rectify this and get production up to 10k oz plus.

I sold out in December due to the consistent selling of VRE. Looks like there will be some good times to get on board as the sp gets shot down from teething problems. Look at PSV - it was nailed down to 10c due to production issues. What happened next - take over at 20 cps. That alone should cap the sp at the historical floor in the short to medium term.

 

[porkpie324]

I think the news was terrible, the whole mine is now in question, as for Fat Prophets making some sort of announcement be weary, they made a number of announcements on BMA gold which closed its mine due to similar reasons, porkpie

 

[treefrog]

Technically speaking 14c has always provided a very very strong support level for the last 4-5years

Hence I think that VRE will bounce off this low level once the panic settles,

I wouldn't be surprised to see some sort of commentary from Fat prophets to calm the mkt re View

may pull up at 14c support YT but it was already near that as part of recent downtrend - add bad news at that point it usually means the next support level -in this case the 5yr low at 10c
however the falling wedge pattern indicates a potential nice break north sometime soon

 

[moneymajix]

URGENT

VIEW RESOURCES LIMITED: REQUEST FOR TRADING HALT

Pursuant to Listing Rule 17.1, the Company requests a trading halt from opening of
business Thursday 7th February 2008, pending a review of production and cash flow
forecasts at Bronzewing and the release of an announcement.

The Company is not aware of any reason why the trading halt should not be granted.
Thank you for you assistance.


13c.

 

[Aussiejeff]

URGENT

VIEW RESOURCES LIMITED: REQUEST FOR TRADING HALT

Pursuant to Listing Rule 17.1, the Company requests a trading halt from opening of
business Thursday 7th February 2008, pending a review of production and cash flow
forecasts at Bronzewing and the release of an announcement.

The Company is not aware of any reason why the trading halt should not be granted.
Thank you for you assistance.


13c.

No surprise there. I guess the company wants to stem the SP bleeding that would occur today and tomorrow while they cobble together something that might resemble a "rescue" plan to resurrect the SP.



AJ

 

[Goldmann]

are their any takers on people buying this at higher than 24.5c? or am I "THE BIGGEST LOSER"...

also got some at 16c a month or so back, which brought my average price down - certianly didnt expect to see it at sub 14c.

arghhhhh

alternativley i am thinking of selling some on ebay over the weekend!

 

[porkpie324]

Thats one of the reasons to be careful when buying into a mining company where the mine does'nt have a history. Anyway why risk buying into an unknown entity when at this stage of the market there's good companies going cheap like IGO,MCR,SMY and preobably a lot more.porkpie

 

[richmoneymagnet]

Wow looking really cheap at the moment.
What is it now, forward looking PE of 1?
Amazing, too bad its on trading halt could get some more.

 

[So_Cynical]

Lucky i never moved VRE from the watchlist to the "shares i want list"
View was doing ok too.

GL to those holding

 

[treefrog]

putting the fib across the daily chart last ABC (26,14,20) pattern gives first target of 13 - hello! next is 8 which seems to pretty much be the all time low - guess when an established goldie sells a goldmine to a nickle producer, the goldie just might have a good reason for selling
what is poet Robert Frost's famous line "take care to sell your horse before he dies" - was hard to pick this horse was off colour

 

[cookiedude]

So has everyone written this company off? 0.13 was very tempting – any predictions about SP on Monday?