the future of vre

Hi guys,

The past is history the future is what concerns us all.

So where is VRE now and where are we heading for.

The company has stated that the ramp up is now complete and that the company has now produced more then the 10000 oz per month in the December month.

The company has also said that they will be producing 120.000 oz+ /year at a cost of A$575/oz

Lets assume we have a cash cost of A$600/oz and a gold price of A$1000 for 2008

This means this company will make at a production rate of 120.000 oz/year , A$48 Million per annum before tax.

This means after Tax profit will be around A$33.6 million
Which is around 7.8 cts per share which gives us a PE of 3!!!

The latest presentation tells us we have cash on hand of around A$8.5 Million.

Current Mcap = A$95.7 million
Cash on hand = A$8.5 million
Cash (nett before tax)generated from gold production per month = A$4 million
Gold plant worth = A$100 million

Debt free and totally unhedged

So looking at the above figures I have to say that this company should be easily worth DOUBLE TODAYS SHARE PRICE AND MARKETCAP.

All I want to say forget about the past and look now where this company is today and where it will be heading to in the near future.

Looking at the figure above I feel that I can afford to be very bullish.

jojo