Gee, I guess I came to that conclusion by doing some research! That includes talking to TM, talking to my share broker, talking to other VRC investors and scouring the internet! Pretty silly if VRC wasn't going to make money from Stage 1! The cash flow from Stage 1 is going to service the $40m debt and may be used to assist in the development of Stage 2, depending on how much ore that is mined. Stage 1 mining is expected to produce from 20,000 to 51,000 tonnes of ore per annum!
Let's not forget that Volt has at this stage:
A massive Graphite deposit, the largest in Tanzania.
A number of off-take agreements in place.
A projected huge profit margin of up to 87% for Stage 2 mining and a projected pay back of the relatively small $173m development capital, in just 1.4 years!
From what we currently know, it would be totally silly for Volt not to proceed with becoming a Graphite Mining company and possibly becoming one of the top 3 Graphite miners worldwide!!!
And it all starts with the granting of that MINING LICENCE! And for the life of me I can't see any reason why that won't be granted!!!
Here's some quotes: "It is estimated that the facility interest and bond maturity payments can be serviced by projected project cash flows in Stage 1."
"Volt Resources Ltd, has received strong demandfrom institutional investors in a $2 million raising priced at 2.3 cents!"
"Volt's aim is to be one of the top three global suppliers of natural graphite by 2020!"
"Asimwe Kabunga, chairman for Volt, commented:
"With the company now on the cusp of delivering a number of company making milestones including obtaining key project development approvals and securing development funding, the board believes it was timely to strengthen its near-term cash position.
"Further, we are pleased with the level of support for the capital raising by institutions and sophisticated investors and the company looks forward to providing further updates on key corporate and operational developments in the near-term.""
"Bunyu is the largest JORC Resource deposit in Tanzania with 461 million tonnes at 4.9% total graphitic carbon (TGC). This comprises a measured resource of 20 million tonnes at 5.3% TGC, a 155 million tonne indicated resource at 5% TGC and a 286 million tonne inferred resources at 4.9% TGC. This provides 22.6 million tonnes of contained graphite."
"Volt now has indicative commitments for a minimum 36,000 tonnes per annum to a maximum 51,000 tonnes per annum of graphite product for Stage 1 production, which is nominally set at 20,000 tonnes per annum. More important is the diversity among the prospective clients intended uses of Volt’s product which includes graphene, expandable and spherical graphite!"
(My opinions only, and gained from exhaustive research from a number of sources already stated above. VRC remains a high risk, spec stock until that mining licence is granted.Investors should determine their own exposure to risk and reward and jolly well do some of their own research!)
(20min delay)