Funny day alright. Ended up with 80 million shares turned over. I can't help but think about a comment made last week where it was quoted Money on Mine saying Mt Monger is up for sale. Why would that be? And if so what is VAU going to do with the proceeds not to mention the company history of selling assets too cheaply.
No one smacks down a stock from 48 cents to 45 cents with such strong volume against an increasing gold price unless they know something.
The GMD purchase last week of the Laverton resources from Focus will in due course fill their Laverton mill. Which begs the question where will the Tower Hill ore go given it was slated to go there. GMD claim they will upgrade their mills. This may be true but given VAU is trading at not much more than $2 billion EV would GMD make a script offer for VAU and then sell off MT Monger/Deflector to pay for KOTH, with a view to trucking Tower Hill ore north to KOTH. With the worst of the stripping done and Mt Monger, significant drilling at Sugar Zone complete and Deflector still punching out cash a sale of those three assets would pay for KOTH.
VAU is in a very strong position financially and as pointed out in another thread is going to significantly increase cashflow over the next two years against a backdrop of a very long mine life. Not to mention significant exploration success as outline below. At current prices it is undervalued so much on the radar of predators or the Board is about to dilute shareholder value again through another acquisition.
The company needs to come clean as to what they are up to. The uncertainty (or insider trading - take your pick) is supressing the share price. I get the hedges aren't helping but most of them with be gone in six months. Today is just another classic example of VAU going against the overall upwards trend of gold stocks.
GLTA/IMHO
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