VRC 0.00% 0.4¢ volt resources limited

The EV thematic is interesting however your extrapolation to...

  1. 223 Posts.
    The EV thematic is interesting however your extrapolation to 2030 is of no consequence for shareholders in VRC today. Perhaps it's relevant to Syrah who are funded into production but not Volt with no cash and $1.1 million of debt.

    VRC is a low grade project with a resource modeled on virtually uneconomic processing cut off grades. The metallurgical test work hasn't been updated since August last year, there hasn't been any resource drilling towards the BFS. The company hasn't even provided a scoping study to demonstrate that a 10-20ktpa production profile is economic for this project.

    However, in the absence of guidance from the company and notwithstanding the extreme political uncertainty in Tanzania you are comfortable predicting future valuations of 30 cents, based on what logic? What production profile and margins are you assuming, how much CAPEX? How much dilution have you applied?

    Perhaps you could address the legitimate project, sovereign risk and balance sheet concerns rather than just painting broad strokes around guestimated future demand. 2030 clearly isn't relevant to a company that doesn't appear to have a balance sheet to survive beyond the next few months. You can't even get a mining license in the country at the moment.

    By your own admission you now have a material holding and in a similar fashion to other larger holders on this site you appear to favour aggressive behavior to shut down anyone with a view that goes against your investment thesis.
 
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