Australian (ASX) Stock Market Forum

VRE - View Resources

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I am, I'm hoping for a pullback between 415 to 405 before a nice move onward, I might even consider picking up a few more at that level if I can scrape some money together :)
 
Yes, imajica.

Sellers today have refused to cross to 42 which is a good sign. Looks like it will consolidate here until buyers realise they will have to bid up if they want to get some.

Gar, check out the options. If you want something long term they look like a better bet. And should theoretically give you leverage on a breakout. Pretty much none left which is a good sign that the long termers are holding out for much larger gains.

EDIT: And just as I say that... lol!
 
Cheers chops, they do look a good deal but I have never traded options and I dont have my account approved to trade them yet.
 
Gar said:
Cheers chops, they do look a good deal but I have never traded options and I dont have my account approved to trade them yet.
Click to expand...
They are listed as VREO.

You can trade/ buy/ sell them like ordinary shares. 20c exercise price in june 08 I think.
 
Some interesting stuff if anyone is interested:

http://www.wallstreetreporter.com/profile.php?id=23733#

In this, Tim Gooch says they WILL be selling Nickel by the end of this year. Good to see they are pre-empting announcements again. :p:

He also states they are on the M/A trail. Which, I guess in turn makes them a target.

And a Hartleys report:

http://www.viewresources.com.au/documents/OnTrackforTwoMinesbyYearEnd.pdf

It's a pretty funny report. Currently trading on the NPV which is fair enough... but if you look at the forward PE's, they are between 2 and 3. Even at their "buy" price of 55c, the forward PE's would be between 2.5 and 4.

Now, I don't know about you, but, lol, I don't know of any significant gold producers that trade at PE's of 3. If so, I'd like to know about them.

For what it's worth, my forward PE on it is about 4. Given cash flow from bronzewing at between 20 and 25m per year (depending on mine life) and revenue from Carnilya Hill between 10 - 15m per year at a dliuted market cap of ~150m. Given gold miners typically run at PE's of between 16 and 25, you can do your own sums.

But the market is a strange beast. You know the next report is going to be positive about Carnilya Hill (due anytime later this month or early next). You also know that news about the first gold pour is due anytime soon. And you can bet your bottom dollar that when they do release this stuff, the market will lap it up. :rolleyes: But it's not like any of this stuff is unknown.

Prouction is on schedule, costs are on budget. To me, this looks the goods, and I'll be looking to get more on any weekness. It's a no brainer for mine.
 
Could be due for another run.

The sell side has really lightened up, and the buying depth is looking good. No one is selling down. Looks like people will have to chase this one up if they want it.
 
A fair bit of interest today :)

A story on was posted on mining news yesterday

A view to Bronzewing's rebirth

Wednesday, 25 April 2007

HUNDREDS of millions of dollars have previously been spent on Bronzewing and it involved such luminaries as multi-millionaire prospector Mark Creasy, Joe Gutnick's Great Central Mines, Robert Champion de Crespigny's Normandy Mining and Newmont Mining. By Mark Mentiplay.

In 2007, gold production in the first half of the year and nickel soon after will not only mark the rebirth of the famous gold mine, but it will also be owner View Resources' first big step to becoming a significant mid-tier mining house within a few years.

Cashed up following $38.5 million in recent capital raisings ($16.5 million in debt and $22 million in equity) that will see Bronzewing funded through to production, View will sit like a processing and production spider in the middle of a web that covers up to 50 variously sized and advanced gold projects in the surrounding Yandal Greenstone Belt region.

View Resources managing director Tim Gooch told RESOURCESTOCKS the company is aiming for production from Bronzewing, 400km north of Kalgoorlie in the Eastern Goldfields, in 2007's second quarter and cranking up quickly to 120,000 ounces a year over its current four-year mine life.

Near mine and regional exploration is targeting to replace that at around 100,000oz pa.

Twenty-five kilometres southeast of Kalgoorlie, Mincor Resources has taken just eight months of the three years required to earn 70% of View Resources' Carnilya Hill nickel project, expected to be in production in the second half of this year.

As with Bronzewing, the previously producing high grade Carnilya Hill project has excellent existing infrastructure with exploration based on two declines expected to yield a JORC standard mineral resource by March, a pre-feasibility study before the end of June and production before the end of the year.

"View's strategy is to become a mid-tier mining house with a market capitalisation up from the current $63 million to $250-300 million over the next few years," Gooch said.

"A key component of that is to have at least two operating mines, producing two income streams.

"With gold and nickel both enjoying significantly high prices, and our ability to utilise the existing infrastructure at both projects to quickly restart them, the timing of bringing both these assets into production in 2007 is very fortuitous."

Bronzewing has current resources of 11.62Mt at 2 grams gold per tonne for 738,000oz and reserves of 7.8Mt at 1.9gpt for 482,000oz.

Initial production will come from Bronzewing's Central open pit, the Venus and Success pits, and then the Cockburn pit and underground, where the bulk of the resources are.

The bankable feasibility study sees free cash of $A250/oz, based on total operating costs of $A570/oz, but Gooch points out that cash costs are falling as View continually reviews and improves its operating model.

A BFS spot gold price of $A800/oz provides total free cash of about $A63 million on the current four-year mine life and current resources/reserves.

Bronzewing's current resources/reserves include 288,000t at 2.22gpt for 20,600oz at Success, 20km from Bronzewing, and 181,000t at 2.42gpt for just over 14,000oz at the nearby Venus deposit.

However, they do not include the JORC compliant 152,000oz Corboys deposit, 30km north of the Bronzewing project, on which View has signed an option agreement with Great Australian Resources.

View will spend up to $A500,000 increasing that resource by the end of 2007 when it will be able to exercise its option to purchase the tenement outright for cash, scrip and a royalty.

These recently acquired resources underpin View's strategy to develop Bronzewing by securing further resources through third party feed, acquisition and exploration.

"The driving force is supply for a very hungry [2.3Mtpa] mill. Economy of scale is a major economic factor for us, hence our commitment to pursue all possible feed options," Gooch said.

While there are no toll treatment contracts in place at this stage, "there are probably 40-50 operations in the region that could use our process, production, camp and services facilities – millions of ounces, albeit many not JORC compliant and not particularly advanced, but with ore that we can process."

One of the company's major tasks is assembling the project's 150 to 200-strong workforce.

View has already spoken to "five or six senior people" and is casting its net far and wide "for people with the right attitude". In a tight market, Gooch is confident of putting together a good team in the required time.

A major drawcard will be the 400-person Bronzewing camp, recognised as one of the best in the country and boasting a 24.9m swimming pool, indoor cricket, squash court and modern gym facilities.

On the exploration front, the company has earmarked $4 million for exploration, most of which will be spent on Bronzewing and its 1000sq.km tenements.

A structural review carried out by SRK has identified a number of near mine targets, the second stage of which is looking a little further afield at advanced targets including Corboys and Mt Joel to generate 100,000 replacement ounces a year.

"Up until now, we've been concentrating on proving up our reserves. Now we've done that and gone a long way to sorting out production and early cash flow, we've got the cash to have a real good look around," Gooch said.
Click to expand...

source: www.miningnews.net
 
Gar said:
"The driving force is supply for a very hungry [2.3Mtpa] mill. Economy of scale is a major economic factor for us, hence our commitment to pursue all possible feed options," Gooch said.

While there are no toll treatment contracts in place at this stage, "there are probably 40-50 operations in the region that could use our process, production, camp and services facilities – millions of ounces, albeit many not JORC compliant and not particularly advanced, but with ore that we can process."
Click to expand...
Thanks for that Gar. :)

Although some of the information is out of date (the mkt cap and the JORC code for Carnilya Hill) it is very interesting.

I was wondering if they would process other companies gold at that mill. It seems a lot of the companies in that region are having big problems finding or setting them up.

But if VRE can get a 30% processing fee for some of the miners around there, that would be huge for the company. It is such a strategically brilliantly placed resource with infrastructure that I wonder how they were able to buy it so cheap. The mill and everything there is probably worth more in parts now than what they bought it for. Lol!

On all time frames, short, mid and long, both fundamentally and technically, I don't think it could be any better.

And by the looks of things, we might be in for some rather large volumes either this afternoon or tomorrow even. ;)
 
chops_a_must said:
I don't know what LH is. Was it less than what they are paying for SMM? Lol.
Click to expand...

LOL!
LH = Langer Heinrich, PDNs mine in Namibia that recently went into production.
They bought it for some ridiculous amount like $6million back when uranium was US$10/lb and now they will make $100m+ a year from the mine.
 
nizar said:
LOL!
LH = Langer Heinrich, PDNs mine in Namibia that recently went into production.
They bought it for some ridiculous amount like $6million back when uranium was US$10/lb and now they will make $100m+ a year from the mine.
Click to expand...

It's interesting to see how many of these companies bought virtually "worthless" ground in the beginning, only to go on to do great things. Oxiana and Mincor are ones that come to mind straight away. I know there are many others as well. I'm hoping this will eventually be in that category as well.

Isn't she a beautiful sight?: :D :D

vreo.jpg


I wonder how long those oppies are going to be there at 25c, given they are selling in the money. In hindsight, I should probably have sold the heads when the oppies were trading exactly 20c less. Ah well, better for the diversity I guess. But that depth couldn't make it any clearer as to the thoughts of the holders in the long term for this company could they?
 
Chops.
The oppies look good but i only hold FPOs.

The depth on the heads is the kind of depth that i love.
Sell side thin.
Total sellers: 870k
Total buyers: 3.8million

Gotta love blue sky stocks :D
 
Darn, I put my house on this blue sky stock, and now it's going down :eek:
Maybe I should have put my house on INL instead?
Sorry, Nizar/Chops - couldn't resist :p: There's more than one way to skin a cat I suppose...
 
rub92me said:
Darn, I put my house on this blue sky stock, and now it's going down :eek:
Maybe I should have put my house on INL instead?
Sorry, Nizar/Chops - couldn't resist :p: There's more than one way to skin a cat I suppose...
Click to expand...
Well, I'm holding heads since the low 30s and oppies well in the teens... and any stops set should be absolutely nowhere near where this is currently. As opposed to the fair chunk of INL holders who have had to average down to be near breakeven.

I don't see why anybody would be selling now. It's sitting on the low end of its NPV, and history suggests when the first gold pour happens (due anytime soon) it will kick.

Cheers,
Chops.
 
Tend to agree with Chops.
I bought this when it first broke into blue skies at .35.
Actual entry was .37.
Stop at .33.

The thing iv learnt about blue sky stocks is that they do run, though perhaps not immediately, and you just have to give them time.

I remember AGM, i bought it when it first broke into blue skies 10yr highs at .40c. Entry was .425. Stop at .385, i figured the stock wouldnt close below 40c again as then it would probably trade sideways again or turn bearish. It never got near my stop. But it just stayed in the mid 40s for like after a month. And i thought, what a waste of money, youve got stocks breaking out left, right and centre, and i bought a dog. So i chopped it.

Now its $1 + :D

Same with MTN, nice blue sky stock, range traded for a while between $3.75 and $4.00, the impatient ones got out, luckily this time i still held.

So now, when i find a blue sky stock that has just broken out, i take a position, and as long as my initial stop isnt hit, im willing to let them ride.

Just my opinion and my way of doing things.
 
nizar said:
Tend to agree with Chops.
I bought this when it first broke into blue skies at .35.
Actual entry was .37.
Stop at .33.

The thing iv learnt about blue sky stocks is that they do run, though perhaps not immediately, and you just have to give them time.

I remember AGM, i bought it when it first broke into blue skies 10yr highs at .40c. Entry was .425. Stop at .385, i figured the stock wouldnt close below 40c again as then it would probably trade sideways again or turn bearish. It never got near my stop. But it just stayed in the mid 40s for like after a month. And i thought, what a waste of money, youve got stocks breaking out left, right and centre, and i bought a dog. So i chopped it.

Now its $1 + :D

Same with MTN, nice blue sky stock, range traded for a while between $3.75 and $4.00, the impatient ones got out, luckily this time i still held.

So now, when i find a blue sky stock that has just broken out, i take a position, and as long as my initial stop isnt hit, im willing to let them ride.

Just my opinion and my way of doing things.
Click to expand...


Agree with you Nizar, you have to give these things time to run.

I think the full value of this wont be realised until they commence production. After the failure of so many of the small miners recently, I think a lot of people want to see actual production numbers hitting targets before they jump in fully.

I jumped into the opies back in August when they were at 8c. That probably a record for me for holding a stock. While the question of missed opportunity needs to be considered, its a 3 bagger at the moment and should get to a 5 bagger if the production numbers hit the forecasts from the feasability study. To me that justifies holding these for the extended amount of time. Will also be looking to top up on any weakness in May or June as well.

Credit to Chops for all the research posted on this one.
 
Looks like there is something up with this one today. A bit of positioning on the options this morning, with a large off screen buy just taking out most of the sellers at 44c. Possibly preparing for another run or impending news? Anyway, as I'm sure most holders are, I am definitely not selling this close to undoubtedly positive news.

We'll see how the afternoon pans out. But looking good right now.
 

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