Magadan,You make a good, sound and rational observation.I'm glad...

Magadan,

You make a good, sound and rational observation.
I'm glad you did - because the CEO also stated in early January's presentation that production cost's (as of then)were starting to run in line (hand-in-hand) with the feasibility model projections.

So if we were to deduce that VRE/Bronzewing production/total costs for the month of January were close to, or around A$5.47M (based on the feasibility model of total costs being the equivalent of A$547oz. x 10,000ozs. per month target/estimate), then we could also deduce that with an average Gold Price of A$1,000oz. being achieved,
VRE would only have to produce somewhere around 5,470ozs. for January to break even (A$1,000oz. x 5,470ozs = A$5,470,000).

Now we know VRE didn't quite make the 10,000oz. target for January because they told us that in the quarterly - but they did confirm that we would still be aiming/on target for the 30,000ozs. for the quarter - so the bottom line there for me says they were short, but not too much short of the mark, and certainly a lot more than the 5,470ozs. required to break even.

Hence, VRE has to be cash-flow positive for the month of January - even if we were slightly off reaching the target. This is all due to the massive increase in the Gold Price since Christmas.

On those figures, VRE would still have the A$5M cash in the bank, as at the end of December, plus the balance of the A$22.5M from Mincor (via Investec payout) to come in early February, plus the over and above from whatever they achieved in January production sales.

So Magadan, I agree with you as far as some 'uninformed' investors being nervous etc. re the exact VRE cash flow position until they find out exactly what was achieved in January's production result.
I can also concur with, and understand Jesimore's frustrations.

But no one can deny those base figures - and they are on the cautious/conservative side - particularly as far as the average achieved Gold Price is concerned.

The future looks great IMO - the figures are there for all to see, you just have to read between the lines a lot of the time. I certainly won't be surprised when we start seeing really impressive, and certainly highly profitable figures from here on in.

No point chasing a train, when you catch one prior to departure for mine - but then again, it's always been different strokes for different folks.

wrxsti