It was a very good breakdown, and in much greater detail that I have seen previously on VEC. I wasn't kidding when I said well done.
I also agree there can be good value in the project itself, however, many thinking buying this is essentially '$25m market cap for 3.2m oz of gold' haven't dug deep enough as its a complex deal. As you have articulated, once you factor in increased SOI, additional cash payments, debt and royalties the NPV attributed to VEC is much less than the headline feasibility study.
I am personally comfortable with the DRC however each person will always apply their own 'sovereign risk discount' to future NPV/DCF when valuing the company. Its not an easy jurisdiction, although hopefully with Kabila seemingly stepping down (finally) it can become easier.
There are a lot of moving parts to the deal and its probably something that needs management's complete time and devotion to get it done.
- Forums
- Charts
- VEC chart
It was a very good breakdown, and in much greater detail that I...
-
- There are more pages in this discussion • 314 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add VEC (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online