Article includes VTR
https://www.theaureport.com/pub/na/15050?utm_source=delivra&utm_medium=email&utm_campaign=Gold+final+streetwise-reports+03%2F01%2F2013+15%3A05%3A44
TGR: What are some examples of some companies that have been oversold based on risk perception?
AS: Volta Resources Inc. (VTR:TSX) has been oversold mostly because it's in Burkina Faso. It's been bashed by the market.
Atacama Pacific Gold Corp. (ATM:TSX.V) has been oversold because it's a junior name with no cash flow and probably will not be in production until late 2016 or early 2017.
Volta was a $2/share stock not that long ago and it's trading at about $0.31/share. The company has over 5 million ounces (5 Moz) of gold at Kiaka, according to a prefeasibility study. It's oversold because of the risk perception versus the reality.
TGR: Where is Volta in financing Kiaka?
AS: Volta just completed a prefeasibility study on Kiaka. The company initially planned to have a bigger plant and more production and then the market bashed it. In our view the project can be scaled back and can start as a smaller project and then scaled up. The capex would be in the $400 million ($400M) range for a smaller project in our view. Investors don't want to own a junior with a capex of $700M in this market. Volta will be looking at all options to finance the project and move it ahead. Currently the project is in the feasibility stage.
TGR: If the market were better for resource companies, would Volta have gotten a takeover offer already?
AS: Definitely. How many mines have more than 5 Moz? I don't know of very many.