victorian gold mines, page-2

Ok gents here are my thoughts on VGM.

Firstly VGM is a pure gold play. The closest thing we've seen to a pure gold play since Gold started breaking out 2 months ago is SUM (which is gold & copper EXPLORATION). And that's performed the best out of the IPOs we've seen.

Gold pure plays in a gold bullmarket I would expect to perform very well. Remember Uranium floats in the uranium bullmarket? While we don't expect the 200-300% that we were getting back then due to the GFC and weakening of general market sentiment, I think 30-50%++ is stil doable.

LCR opened at 25c which is a 25% premium to the offer price. I believe VGM will do better and here is why:

*LCR were exploring for gold, copper, and base metals.
VGM = pure gold play.
*LCR have highly prospective tenaments with geographical proximity (how many uranium explorers are exploring around olympic damn? how many of them have hit?)
VGM have a proven resource with imminent production.
Gold has been PRODUCED at the sites where VGM is mining. Infrastructure is already present. The mines were abandoned because low gold prices made mining uneconomical. So we KNOW the gold is there.
*LCR is raising $6million.
VGM at maximum subscription will be raising half of that ie. $3million.
*VGM aims to be profitable from year 1.
LCR???
*LCR opened on a pretty ****ty market day and STILL got 25% premium to the issue price.
VGM??

Also look at the chairman Kevin Nichol and his previous float BWN.
He raised $8.6million JUST FROM the brokers and institutions before the general public offer opened. The float was only for $5million. So he MADE SURE it would be oversubscribed.
See second paragraph here http://www.theaustralian.news.com.au...-18261,00.html

BWN opened at 26.5 and closed the first day at 25.5c.
Then what did Kevin do?
In the FIRST WEEK he released 3 key ASX announcements.

1. Directors increasing their stake already.
2. Oppies to be issued to holders at 1c each.
3. Drilling rig secured.

After that trifecta they hit 50c.

It could've got even more special from there but then unfortunately the late Feb'07 correction took place and everything got hit.

This one looks the goods guys.
I've put in an application for 150k.
I don't expect 200-300% so will have to get enough to make it worth it.