VRE - View Resources
- Thread starter Ann
- Start date
-
- Tags
- view resources vre
chops_a_must
Printing My Own Money
- Joined
- 1 November 2006
- Posts
- 4,636
- Reactions
- 3
Yeah, the management have some serious explaining to do.
They have been lying on the phone, at their AGM and in their previous announcements. This is going on that ever increasing scrap heap.
Just hit 27c.
VRE looks like it could break through to 30c and beyond today, back to it's old highs.
Very good to see given the way the market perceived the last announcement.
For some reason the MD can't put a positive spin on his announcements, this has happened a couple of times in the past if I recall recorrectly.
- Joined
- 17 October 2007
- Posts
- 16
- Reactions
- 1
Trading halt - what do you guys think, good or bad? The share hit a high of 27.5 in the morning but the proceeded to move down to a low of 24.5 over the course of the day... that can't be a good sign, can it? 
- Joined
- 29 March 2006
- Posts
- 218
- Reactions
- 0
Hi
Can someone do a chart analysis on this one?
I mean, I bought this at 0.45, LUCKILY just bought about $700 !
I dont know what the management is doing with their company.
Can someone do a chart analysis on this one?
I mean, I bought this at 0.45, LUCKILY just bought about $700 !
I dont know what the management is doing with their company.
- Joined
- 6 June 2007
- Posts
- 1,314
- Reactions
- 10
Imaginator - the company is currently suspended from official quotation pending an announcement on their finances. This is to raise working capital to fund 4th quarter production.
They have forecast production of 30,000 oz this qrt which should allow them the be cashflow positive by the start of 2008.
Now we just have to wait and see the outcome of the financing.
Took a punt at 25c the other day based on no issues with financing, unhedged and forecasting 30k oz production as per mining plan. Problem is low start up ore grade, lack of working capital and thus a repeated need to raise finances. Lets see if these problems are truely behind them.
doogie_goes_off
disbelieve if you can
- Joined
- 27 February 2007
- Posts
- 655
- Reactions
- 31
Nearly 9000 oz for the month previous, that should knock the sceptics back into line. I'm now looking for an entry point. Should be in the order of $100M of gold sales for 12 months. Very nice news.
- Joined
- 24 August 2005
- Posts
- 465
- Reactions
- 0
Chartwise VRE is looking good, I have traded VRE a few times last year and 2005 some good trades too, so will watch the next few days with interest, porkpie
- Joined
- 6 June 2007
- Posts
- 1,314
- Reactions
- 10
Still a fair few sellers around on this one. Say the mgt skeptics are still out there at the moment and looking for a good exit point. Entry point later this arvo or on Monday on profit takers. Happy with my 25 at the moment. Might top up as well.
30k ounces looking good for the 4th quarter. Benefit of the ore coming from 4 separate ore bodies has ironed out the problems with the grades. Nickel cashflow on track for start of 2008. Minig high grade nickel first up so will beenift from the historically high nickel price. So cashflow positive in a few months which should get their focus off financing and on to exploration. Good time to get on board as long as mgt start to live up to expectations.
30k ounces looking good for the 4th quarter. Benefit of the ore coming from 4 separate ore bodies has ironed out the problems with the grades. Nickel cashflow on track for start of 2008. Minig high grade nickel first up so will beenift from the historically high nickel price. So cashflow positive in a few months which should get their focus off financing and on to exploration. Good time to get on board as long as mgt start to live up to expectations.
chops_a_must
Printing My Own Money
- Joined
- 1 November 2006
- Posts
- 4,636
- Reactions
- 3
Yeah, it needs to take out that previous high at 33.5 before it's had a turnaround IMO. All it has done so far is bring out more volume.
for those looking to add a junior gold producer to their portfolio you would be wise to run the numbers over VRE, like most other companies it has been overly beaten down over the last couple of weeks and presents excellent exposure to the rampant gold price.
for the shorter term traders it also provides excellent upside due to exploration and news regarding the ramp up of production at the Bronzewing Gold Project.
What really attracted me to VRE is the incredibly cheap P/E ratio, given the recent sell off.
For those not familar with VRE a quick outline of their current activities.
Bronzewing Gold Project
Acquired from Newmont back in 2004 for a bargain price when gold prices were yet to start their rampage higher.
The deal left VRE with the following
-The $100 million dollar Bronzewing Gold Treatment Plant
-An 800,000 oz gold resource purchased at only $4 oz average cost
-Over 1000 square km's of highly prospective gold exploration tennements with several strikes measuring over 1km.
Current Bronzewing Gold Production
This is where the amazing value in VRE is
- Current Production 120,000 oz's
- Total Production Costs of $574 oz
- Current Gold Price $1020 oz
- Current Operating Margin $446 oz
Projected Yearly Profit
120,000 oz * $446 oz = $53,520,000
Or EPS of
$53,520,000 / 439,055,266 shares on issue
= 12.2 cps
So with a projected 12.2cps profit it works out to be a PER of 1.4 times 2008 earnings.
I don't think there would be many companies trading on a 1.4 PER out there that is just amazingly cheap.
Bronzewing Plant Regional Processing Plant Hub
On top of their own gold operations, VRE have the added bonus of spare capacity at the Bronzewing plant, meaning there is a host of up and coming gold companies knocking on VRE's door to have they ore toll treated.
With the current gold market environment VRE is in an excellent position to virtually charge whatever they like to have other companies treat their ore at Bronzewing adding another revenue stream on top of their own operations.
Carnilya Hill Nickel
Recently VRE entered into an agreement with MCR to sell their 30% stake in the Carnilya Hill Nickel Mine, netting a profit of $25 million.
These funds have been used to pay off debt and rid the company of any gold hedging allowing them to be fully exposured to the rampant upside of the gold price.
Thanks to the recent market sell off, VRE is now one of the cheapest gold producers on the ASX, with production now at the target of 120,000 oz's per annum and a projected yearly profit of $53 million not including any gold price upside or toll treating arrangements, its hard not to see significant upside from these levels.
for the shorter term traders it also provides excellent upside due to exploration and news regarding the ramp up of production at the Bronzewing Gold Project.
What really attracted me to VRE is the incredibly cheap P/E ratio, given the recent sell off.
For those not familar with VRE a quick outline of their current activities.
Bronzewing Gold Project
Acquired from Newmont back in 2004 for a bargain price when gold prices were yet to start their rampage higher.
The deal left VRE with the following
-The $100 million dollar Bronzewing Gold Treatment Plant
-An 800,000 oz gold resource purchased at only $4 oz average cost
-Over 1000 square km's of highly prospective gold exploration tennements with several strikes measuring over 1km.
Current Bronzewing Gold Production
This is where the amazing value in VRE is
- Current Production 120,000 oz's
- Total Production Costs of $574 oz
- Current Gold Price $1020 oz
- Current Operating Margin $446 oz
Projected Yearly Profit
120,000 oz * $446 oz = $53,520,000
Or EPS of
$53,520,000 / 439,055,266 shares on issue
= 12.2 cps
So with a projected 12.2cps profit it works out to be a PER of 1.4 times 2008 earnings.
I don't think there would be many companies trading on a 1.4 PER out there that is just amazingly cheap.
Bronzewing Plant Regional Processing Plant Hub
On top of their own gold operations, VRE have the added bonus of spare capacity at the Bronzewing plant, meaning there is a host of up and coming gold companies knocking on VRE's door to have they ore toll treated.
With the current gold market environment VRE is in an excellent position to virtually charge whatever they like to have other companies treat their ore at Bronzewing adding another revenue stream on top of their own operations.
Carnilya Hill Nickel
Recently VRE entered into an agreement with MCR to sell their 30% stake in the Carnilya Hill Nickel Mine, netting a profit of $25 million.
These funds have been used to pay off debt and rid the company of any gold hedging allowing them to be fully exposured to the rampant upside of the gold price.
Thanks to the recent market sell off, VRE is now one of the cheapest gold producers on the ASX, with production now at the target of 120,000 oz's per annum and a projected yearly profit of $53 million not including any gold price upside or toll treating arrangements, its hard not to see significant upside from these levels.
- Joined
- 24 August 2005
- Posts
- 465
- Reactions
- 0
Nice post 'Mick', I bought VRE back in late 2006 purely as a nickel play, sold them about 6 months later for a very nice earner. Since they went off my radar until the Carnilya Hill sell off to MCR, then I noticed the potential of VRE as a gold play. That 120k produced gold are they actually producing that ammount or is that figure a proposal?. Also the options might be the play although not sure of the conversion date or price. porkpie
they reached their production target in December when they produced 10,300oz's. Meaning the company is raking in the profits on the back of a rampant gold price.
looks like the 17c level will be key, if this breaks we might start to see it go on a bit of a run.
looks like the 17c level will be key, if this breaks we might start to see it go on a bit of a run.
- Joined
- 18 February 2006
- Posts
- 4,200
- Reactions
- 2
Hi Mick,
I had a quick look,
I reckon the company is smart, for 3 reasons
1. They have closed out their hedging = very smart in current gold environment,
2. They are selling their Nickel interests for $25m which is almost what the NPV of it is $30m
3. They will use the funds to retire debt and top up cash
Given the company is producing this extra cash will surely see them through
The company estimates the NPV of the gold project to be $150m = 35c
It does look very interesting,
I wonder how much all their plant and equipement is worth?
I had a quick look,
I reckon the company is smart, for 3 reasons
1. They have closed out their hedging = very smart in current gold environment,
2. They are selling their Nickel interests for $25m which is almost what the NPV of it is $30m
3. They will use the funds to retire debt and top up cash
Given the company is producing this extra cash will surely see them through
The company estimates the NPV of the gold project to be $150m = 35c
It does look very interesting,
I wonder how much all their plant and equipement is worth?
hey YT, the company has highlighted the fact that the processing plant is worth $100 million, meaning the market cap of the company is less than what they would get if they just closed the plant and sold it off, thats just crazy.
Would be interested in your thoughts on what the potential shareprice might be given their current 800,000 oz resource, $100 million plant, $8.5 million in cash and yearly profits of around $53 million.
thanks
mick
Would be interested in your thoughts on what the potential shareprice might be given their current 800,000 oz resource, $100 million plant, $8.5 million in cash and yearly profits of around $53 million.
thanks
mick
Sean K
Moderator
- Joined
- 21 April 2006
- Posts
- 22,041
- Reactions
- 11,057
Yep, looks crazy on the surface so warrants further investigation just on this.
With that production profile, unhedged, for what they have in the ground, seems undervalued.
Most bigger players are looking for larger resources though (2m oz +), can they get there?
k
Hey kennas, VRE has over 1000 square metres of prime gold exploration tennements in and around the Bronzewing Treatment Plant, with the company expecting to at least increase the gold reserves by 100,000 oz's each year, meaning every ounce they produce they are replacing by exploration.
The Bronzewing Treatment Plant is the real bonus for VRE, every aspiring gold producer would kill for a treatment plant the size and quality of that of Bronzewing.
They already have had discussions regarding toll treatment of ore from other gold juniors, and this is just another cash cow for the company.
Taking the current gold price and production rate, VRE will have $50 million in cash reserves by the end of the year, against a current market cap of $70 million, making it one of the cheapest gold producers out there.
The Bronzewing Treatment Plant is the real bonus for VRE, every aspiring gold producer would kill for a treatment plant the size and quality of that of Bronzewing.
They already have had discussions regarding toll treatment of ore from other gold juniors, and this is just another cash cow for the company.
Taking the current gold price and production rate, VRE will have $50 million in cash reserves by the end of the year, against a current market cap of $70 million, making it one of the cheapest gold producers out there.
- Joined
- 24 August 2005
- Posts
- 465
- Reactions
- 0
On looking through the last annual report there are 378mil shares on issue with 53.5mil options ex at .20c on 30/06/08, the closing SP today .17c the options .033c.porkpie
