I believe RCF have no plans to exit VMY. they are closing down...

First 9 Last

Share
Profile

Follow
scatterbrain

459 Posts.

203

06/09/18

12:03

Post #: 35445049
Share

Originally posted by pezsaz ↑

Fair questions. Low risk on not getting this signed off. Most approvals and enviro sign offs are complete. But you can never rule out at 100% remaining signnoffs so always a possibility. That said, I don’t believe that risk is priced in or holding the stick back. In the short to medium term the risk you raise has little bearing on share price. Just two things for VMY, one of which is unique to VMY
- 1st, market will go wild for all advanced uranium stock if spot price goes up. Anything over $30 will light a fire
- 2nd. Need to be patient while RCF rebalances and exits VMY. Probably got another 50-70 million shares. RCF have no issue with VmY. It’s uranium agnostic decision based on their ‘portfolio 6’ and broader risk and liquidity issues. They will sell down to zero. Which is better than the risk of them still hanging around. Will make for a great announcement from VMY mgt once they are off the register. And if spot price increases they will flush out quickly.
- at an Australian political level, I believe United States section 232 outcome will play positively for VMY and seeing the 4 uranium mines in WA which received approval provided with strong support. Especially as I believe US will include Australia as one of only a few countries that will be included on their strategic supplier requirement list
- there was a push at WA state level to overturn uranium approvals once labour minister took over from liberal encumbant. Got smashed and labour publicly supported so very rare to back track now
Cheers
Pez

Expand

I believe RCF have no plans to exit VMY. they are closing down funds 4 + 5. VMY is associated with fund 6. Recent selling from them has been due to them needing cash. Just coincidentally happens to be at the same time they have been selling from their fund 5 in BMN. Im told each RCF fund acts as a seperate entity.

VMY Price at posting: 9.7¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply