STTCOMP VEC, FA LONG
Market cap 50m approx. fully diluted including ud$10m facility. If you take it out MC is around 38m with 3-3.5m cash approx.
Gold play with 6m plus ozs gold. I lost track how much gold they would have once both acquisitions completed and recent drilling done.
Aididi-Kanga (60% ownership) - I have rarely seen an acquisition of this scale... 2.9m oz at 7.65% au... when it comes to peer comparison, literally I can't find one... At least not till the MC of the peers to $400-500m... Perhaps I don't know much about medium caps as I rarely look into them so I must be missing things? Please share your research if you know one with 3m ozs at 7g/t au... These grades are unheard of IMO particularly at this large scale resource...
Yes, its not JORCed as per JORC 2012... But what it would take to convert it into JORC when you have 173,000m diamond and RC drilling... I am not a geologist but I am sure if you have all the data from this scale of drilling and resource calculations based on some other matrix done by a large company who completely understands the stuff they are doing, then JORc 2012 would not be very hard to be completed IMO...
So part of this 173,000m of drilling 572 holes are diamond drilled for 119,278m and 432 RC holes for 52994m. Now the significance of this drilling in itself is big... I mean even in DRC, drilling costs money... I personally think that the size of this drilling would have costed 3-4 times the current market cap of VEC...
On top of this, they have equipment on site worth US$70m... again this alone is worth twice the market cap of VEC.
Now looking into exploration target for this project, the numbers are looking gigantic... I mean the size of the resource can be 3 times from these levels and grades might be very good... I mean way more than 2g/t which is considered very good when you have 2m plus ounces gold... Exploartion targets though
VEC has also secured a US$10m loan facility along with this acquisition... Clearly they are avoiding dilution at these levels which means they might end up raising funds at way higher prices or simply pay the facility when and if production starts... I like it when managements try to do the right thing for their holders...
And this is only one acquisition...
They have recently acquired 1.4m ounces gold project right next to Kibali mine one of the largest gold mines in Africa... Interestingly, South Kibali (VEC acquisition of 60% project) was part of Kibali mine... However, South Kibali is open pit as compared to under ground Kibali mine... Now this project is only 1-2kms away from Kibali mine literally part of Kibali mine... I would say this is the best nearology play I have seen in ages... Simply, it has gold and heaps of it plus its right next to a mine where US$2-3b already been spend so far...
VEC also acquired Nizi which has tailings approx. 1m oz... I am not a geo but my understanding tells me it can be a project to produce gold quick in short space of time... I mean the historic production from Nizi and Kind Leo mine was 30g/t au... I am still waiting to see what VEC has planned in short to medium time frame.
VEC also has existing lease and JORC 421k ozs at 1.7g/t...
In total, VEC is getting close to 6mz gold with one project at 2.9moz at 7.65g/t au... All this for a market cap of 38-48m...
I will trade the spikes but I personally think this can do well from these levels... As always DYOR and buy sell or hold based on individual risk appetite
