The SFR story is one of great success, a story of rags to riches for long term holders, almost all that traded SFR at the start missed the serious money but nobody knew what would happen. VOR holders like myself have studied the SFR story to death to see how it went down. If VOR can deliver something worth while the second big kick for SFR came from the corporate money from OZL which is what happens when a small player finds a big fish, the big players will want to be a part of anything successfull. Large minig houses are starving for big discoveries, if things go well for VOR a knock on the door is certain.
SFR made the intial discovery (18th May 2009) and the company then had a tidal wave of news which lit the fire.(trading halt 26/5/09, update 21/5, update 9/6, TH 15/6, news 22/6, TH 6/7, TH 10/7, news 19/7, news 23/7, news 3/8, news 10/8, news 19/8, news 2/9, news 23/9, news 15/10, news 9/11, news 27/11, news 22,12.
Above you can see how procative SFR was with news, inbetween drilling results the company kept the fire alight with drilling updates, SFR had 18 releases in 7 months which isnews every 12 days. SFR management had the news to deliver and worked really hard to keep the market and its shareholders fully imformed with obviuos good news.
AVB on the other hand has only delivered 8 news items including the initial discovery in 12 months which is on average every 45 days compared to SFR's 12 day average, this is why AVB has fallen as investors and trading are clearly frustrated with the lack of news flow.
It all comes down to management, AVB had to raise capital and has been held up with lab delays which at the end of the of the day its the responsibilty of management to rectify, you dont give someone a contract to do anything without clear delivery times for your product(drilling results) I dont want to hear excuses i want results and AVB management have clearly failed in this department. I still think AVB have great potential but if the program isnt running smoothly like SFR has done investors wont buy it, this is why SFR succeded in 6 months and AVB 12 months later are floundering.
Turning to VOR again i think that it comes down to management and if they are prepared to work hard and be extremely procative with reports, so far so good. Intitail news on the 8th, updated on the 18th and now a trading halt on the 26th.
If positive results continue to flow and VOR keeps updating inbetween results there is no reason why VOR cant keep going.
At the end of the day SFR i feel is a great model to compare, not only did they grow to inexcess of a $1 billion company, their management is a great example of how it should be done, their geology is completely different to VOR with SFR being a VMS style but their initial intersection's were samller and deeper starting at around 100m - 126m in depth, VOR is starting at 14m and 30m.
Early days but not long before we get another look, i hope we get the diamond tail extentions to give us a look down to 150m
VAL Price at posting:
9.2¢ Sentiment: LT Buy Disclosure: Held
