As always exceptional and/or good releases still brings out 80% negative comments on HC. Maybe the naysayers are right but not from my point of view, VAN IMO is still the most undervalued gold mining explorer on the ASX:
·
The most significant part of this release IMO is VAN’s Crown Jewel - Trident ‐ with an Indicated Resource currently at 410k oz @ 8 g/t . The release has identified a new significant extension to this corridor both in depth, length and massive open cut potential (low cost of extraction) and joining up to Marwest to form a ‘super’ corridor. My analysis is that the upgraded JORC report yet to be released should be close to 1Moz @ 8g/t for Trident alone, delivering close to an overall JORC 2012 estimate of about 2 Moz @ 4 g/t. (with only 4% of total tenements drilled).
Peer Market Caps:B Bellevue Gold MC = $ 787m
- 1.04 Moz Indicated Resource grading 11.4 g/t
· De Grey Mining MC= $1.42B
- 2.16 Moz Inferred and Indicated grading 1.8 g/t
· Vango Mining MC = $80m
- 1.02 Moz Inferred and Indicated 3 g/t
Now both Bellevue and De Grey (and Vango) are skimpy when it comes to actual mining plans and dates , in fact neither BGL or DEG are in production however this has not prevented market caps between $787m and $1.42B being achieved. Did they miss the gold boom? In addition both BGL and DEG strikes are at depth with high extraction costs and very little open cut. Therefore, Vango IMO should be valued at a min $600m.
Maybe those astute buyers over the last 4 weeks who have taken VAN to historical high volumes have come to a similar conclusion. Accumulation. Maybe a corporate play. DYOR
