As this great company is beginning to gain some real traction, I thought id take the time to put together a report on what is happening right now and why I believe Vector is largely undervalued. You can wait until the end of next week for concrete results, but if you are looking to get in at basement prices moving forwards I don't think it gets much cheaper. Can we please keep this thread for Fundamentals posts so as new investors are able to come on here and see exactly what is happening here.
The market can only play 'It’s in the DRC card' for so long. Gold is becoming scarce, what affect do you think this will have on the price of gold? Vectors SP will also be a beneficiary!! Remember its funded until production. This great company is going places.
Once next week moves on out of the way and Adidi-Kanga is in Vectors sweet little hands, I would expect news flow to increase, I think the market will be awoken to the true potential.
I don't ever recall a junior acquiring a world class mine.... I think the market hasn't factored in the other 2 acquisitions which could be close to being sealed also. This would complete the Triple D that we have been long waiting for.
Adidi-Kanga is ready to shock the market, I believe some investors are still querying why did Anglo gold drop the project, simple answer they had to lose both mines or focus in on one and drop the other. Just so happens they dropped the Kanga. Once you dig a little deeper it only becomes more and more positive.
Where we are at project wise-
Adidi-Kanga Gold Project-
- $500 million already spent on the project.
- Over 340m of diamond and RC drilling already completed.
- Completion of feasibility study.
- Commencement of initial mine construction activities.
- 70% of equipment already on site as proposed to be installed under the feasibility study.
- Equipment valued at approximately $70 million (condition report will come with acquisition being completed)
- JORC 3.2Moz of contained gold (I would expect this to be increased considerably, purely speculation)
- DFS fully funded, planned to commence upon completed acquisition. (note as per announcement 24th July 'DFS to commence immediately and will be accelerated due to the project being permitted for development, with Environmental and social impact assessments completed and financial guarantees in place with the appropriate regulatory and administrative bodies).
- Vector Resources as per yesterday’s announcement will be fully funded through until decision to mine.
NIZI Gold Project - Expecting deal to be finalised near term
- Highly prospective area with significant historical mining, significant prospects already identified.
- Surface drilling leading into DFS and U/G exploration on historical mine.
South Kibali Gold Project - Expecting deal to be finalised near term
- Historical Inferred resource of 28.1 Mt at 1.61g/t (1.47Moz)
- Limited drilling program leading into DFS
Maniema Gold Project - (news well overdue)
- 70% ownership.
- Kabotshome prospect most advanced with JORC Inferred resource of 421,000oz's, open along strike and at depth.
- Ore body definition drilling towards PFS and regional exploration.
Capital structure -
Adidi-Kanga is fully funded through until decision to mine (once decision to mine occurs, revenue will not be too far off, preventing many more capital raises, if any).
Working capital is covered by debt funding which is not required to be paid back until decision to mine.
Dont expect any Capital raises In the near future.
Further dilution cannot be ignored, which includes Formosa's shares as agreed to, to purchase the mine.
Moving forward it is clear Vector is well positioned to make a bold move forward in the gold sector, during a time when investors will look for safe havens, one of these is gold. This bodes well for Vector if they are able to get to production at speed. I don't think management have been sitting on their hands for the past 6 months, they have had ample time to ensure all negotiations and plans are well advanced. I think this company will truly move forward at pace and we will have plenty to cheer about in the months to come. The hardest bit in this whole process was acquiring the asset, this as we know is as close to completion as it gets.
I sleep well at night knowing we have Robot Jason Brewer driving the Vector name though his hard work on the ground and ensuring his presence its felt by the DRC conglomerate which has gained great respect.
We have Simon Yours and Andrew Steers working behind the scenes firstly to get this deal completed but also ensuring the next part of the process runs smoothly. Both Simon and Andrew have been involved in such activities before, I am sure the next 6-12months will surely have its hiccups and hurdles, but with the current Vector team I think they will get us there with ease. This team is well equipped to say the least.
All I can suggest is start digging below the surface of the announcements and DYOR, this is a once in a life time opportunity serving itself up to us all.
A great starting point is with the most recent top 20, it is scattered with those working closely with Vector or are on the ground in the DRC. Some big names backed by massive amounts of knowledge and experience.
remember Adidi-Kanga is a well advanced world class gold asset, ask yourself does it warrant a 20 mill market cap!?!
