If you ever needed any convincing that Volt is undervalued take a look at BKT this morning . They have hit an all time high today and currently have a market cap of 190 million. 100 million greater then ours. They too are currently trying to organise funding for their Tanzanian project. The two companies are quite similar in that they both carry the same foreign risk in the same part of the world. The main difference between the two companies is that Volt has a couple of strings to their bow. Volt have a gold situation right next door to PDI which appears to be a very promising prospect. PDI announced further excellent drill results today. They currently have a market cap of 195 million dollars purely off these gold prospects. Given the close proximity one can only speculate that the chances are reasonably good that we do have some gold in them there hills. For the record, we also have a producing graphite mine in the Ukraine. Which clearly puts Volt at a distinct advantage to BKT given they will not be producing any graphite for the forseeable future. It does provide the opportunity for Volt to establish relationships RIGHT NOW. Volt is open for business so to speak. That is a huge plus for Volt moving forward. The opportunity to actually make money from our Ukraine mine exists right now. We DO NOT need hundreds of millions of dollars to get us up and running like so many of the other graphite hopefuls.
I posted some months ago how the sharemarket can be a strange beast at times and how it can be very difficult to work out how the market can value certain stocks very generously and others not so. I think the BKT story has certainly got potential and I wish them every success but the question that needs to be asked is, are they a hundred million dollar market cap better company than Volt.
Cheers.
VRC Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
