LV valuation
Los Verdes valuation against $16M Mkt. Cap. VGM
NPV is likely to be in the range $150-$250M ...
* more metallurgy & engineering will be required to make this assessment.
Copper : significant copper credit (roughly 1/3 of metal value) makes the project attractive to finance.
* This is an important characteristic amongst a peer group seeking startup financings. Presence of recoverable copper / material cu. credits / will distinguish Los Verdes from peer group of open pit primary moly projects.
Cap costs / payback / grade / copper credits define comparative advantage over peer group primary deposits.
VGM has very compelling asset set in :
1 - lower capex / higher grade - Los Verdes (100% unencumbered ownership)
2 - Cuatro Hermanos exploration project (100% unencumbered ownership)
The challenge for mgt. is to avoid dilution while unlocking value.
There is likely going to be little on the agenda beyond getting market recognition for first quanitified values from pre-feasibility. It will be an interesting read for analysts / investors. The engineering merits of Los Verdes should become evident with pre-feasibility. Mkt. recognition should follow and a new VGM share price dynamic should be expected.
There is high volatility and a remarkable degree of mispricing in some junior equities. The assets in VGM warrant more recognition than the market currently affords - no question.