grade aside, the projects that VEC is looking to buy into are all pretty robust. without creating a spreadsheet it looks like they are buying into about 4mozs (60% attributable) plus the ~400kozs they already have. this is pretty outstanding for a company with a MC $41m!! surely once the deals are done, and the attributable gold has been calculated then there will be a serious re-rate of the sp.
as an indication i have done a quick calculations based on Mines Online valuation metrics.
Assuming 3Mos in attributable resources, 5 year average for development projects @ $50 poz then we get to $150m
Assuming 3Mos in attributable reserves, 5 year average for development projects @ $99 poz then we get to $300m
Add in the DRC discount factor and there is still significant upside.
I'm buying.
VEC Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
