VMY undervalued, page-312

I can’t understand the problem when all I am doing is discussing the company

It appears the Mulga Rock project feasibility “refresh” has some glaring flaws as follows

AUD/USD exchange rate of 65 cent used - which is very optimistic with 10 year futures at 72 cents and current exchange rate at 72 cents

Capital costs reduced 20% by using fit for purpose mining equipment - using second hand equipment will require further capital expenditure in the near future

the contractor providing the second hand equipment then operates the equipment on a “cost plus basis” - this leaves the door wide open for further cost blow outs

there has been no provision for mine closure and rehabilitation costs - which are likely to be considered

Vimy needs long term contracts at the US$100 lb to make this project work which they won’t get imo

bankers will rip the feasibility refresh apart and then walk away

that leaves the utilities to fund the project, and utilities are not stupid, they would know full well Vimy can’t get the funding without them - and will expect a huge trade off via a low off take price in return

there are much better projects out there than Vimys which are also fully permitted and in much better jurisdictions imo