Ann: Company Presentation - July 2019 (Amended), page-65

VRC remains a high spec stock. Announcements over the past 2 years have remained hopeful of achieving funding, but to date nothing has eventuated. That being said, VRC's share price has, for the most part, settled in the range of around 2.0c, IMO. Sometimes dipping to 1.8c and sometimes rising up to 2.4c. So, people doing some trading have been able to gouge around 20% on their trades. In fact, those who bought around 1.5c a few months ago could have made up to 60% when the stock hit 2.4c! (And I did.) Try getting 20% to 60% interest in a bank! More like 1.5% at the moment! So, the share purchase plan is causing some debate.

Perfectly understandable why some shareholders are not going to be in it. It is a risk. And VRC's dream of becoming the third largest Graphite miner in the world, currently seems laughable! But on a trading basis, and Pattersons may be pushing this with some of their clients, the SPP may be enticing? Without knowing the final share price for the offer. A 20% discount on today's sp would see that offer being set at around 1.2c! Now, there is a fairly reasonable chance that after the new shares are allocated, that the sp will drift upwards again to its support range of 1.8c to 2.4c, without any further positive announcements!

So, as I see things, from VRC’s trading over the last 3 months or so, those participating in the offer may be able to achieve a profit margin on those shares of at least 50%, 1.2c going to 1.8c. Even up to 100%, 1.2c up to 2.4c, if they chose to sell. Based on VRC’s sp moving back up to the support range or 1.8c to 2.4c. My opinion only. And of course, the sp may not do that and stick around 1.2c to 1.5c, but historically it has settled at that higher range. That is the dilemma? But no risk, no reward.

My belief is that at around 1.2c, VRC's spp price is cheap for traders and short term holders, and also cheap for long term holders as well, providing that things go to plan.

Volt will have enough capital to keep going for some time, even after paying back loans that fall due soon. Unless something else untowards happens, I certainly believe that VRC's sp will trend back upwards, and be higher than the issue price of these new shares. And I guess those accepting the offer will be thinking the same. So, that is why I am participating in the offer. Short term, I see some profit being available for the offer shares, long term, who honestly knows?

I remain hopeful that the current push by management to get the Tanzanian bond issue up and running will be successful, but who knows?



(DYOR and determine your own risk strategy. I have posted my thoughts on why I am buying in, as an alternative view from those opposed taking up the offer.)