There is absolutely no value to be gained from announcing an MOU and it demonstrates just how out of touch Volt is with the market.
Stage 1 is a new production strategy without any actual strategy. Until a new scoping study has been completed it is a waste of time flying around the globe to sign up non binding MOU's that mean nothing for shareholders. What happened to the 100ktpa of MOU's that SH signed 18 months ago? Do we have new MOU's because these old ones are no good anymore?
It's time for VRC to present a scoping study to the market that demonstrates if they can make money producing 10-20ktpa. What is the estimated cost of production, the sale price, and CAPEX? What met work and drilling has been completed to demonstrate that the company can supply into an agreement for these quantities? Volt hasn't completed any work on the project since August last year, nearly 12 months ago. Why?
And then we get back to the issues that still need to be resolved like the $1.1 million of debt which simply kicks the can down the road. It won't be sufficient to achieve 6 months of salaries/admin, scoping study, drilling and met work for the BFS, mining for MOU testing...
In my view this MOU is not a vote of confidence for Volt going into production because there is zero risk for the Chinese company if it doesn't progress. Clearly the market gave it the correct value too, zero.
VRC Price at posting:
2.7¢ Sentiment: Sell Disclosure: Not Held
