- Joined
- 3 February 2008
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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.
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.