I know we have discussed this plenty of times. It still seems that 6.8 billion shares being available has created to much share liquidity and is working against us. Almost all of our peers have about 1 billion shares floated and that is allowing them a tighter market valuation. Vault Minerals as compared to peers is fine if not better in some instances when considering: Production numbers and AISC. Cash on hand and zero debt Balanced and growing output Hedging (for me not great but within reason when considering new mine production facility implementation) KOH etc. Vault minerals is and will be very equitable based on Price Book (share holders equity). At $0.24 Book Value we are presently seeing an extremely undervalued spot price. So what is the issue. 6.8 billion shares allowing for to many intraday trades. AS a thought and only a point of argument as I am hoping for your responses, I think we have created to much share liquidity. From the beginning as an initial Red 5 share holder pre king of the hills I have seen the number shares grow to 3 billion re cap raise. Post merger with SLR shares floated grows to 6.8 billion this is a lot of share holder movement. My question is this: If we pull back the the number of shares to 1 billion divide by 6.8 and have a new valuation of: 6.8 x $0.34 = $2.31 per share with a billion shares now available. Would it achieve: A tighter spot price / less shares available for game play A growing spot price / the real market forcing the price up Is $2.31 per share a fair price: I think so as it equates to a new book value per share of $1.63 and a price to book ratio of about 1.45 that is bloody cheap. What I am asking is: Would a share pull back to 1 billion be sensible? Will it reduce trading liquidity / pull it back enough to stabilise intraday pricing? Would it essentially be positive or not? I am presently a long term holder and will remain so yet the silly spot action due to shares available is becoming a little tiresome. Your thoughts are appreciated.
VAU Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
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