The conclusion by Caesar report Conclusion
Investing or speculating in the mining industry is generally based on an interpreted risk/reward ratio. Investors should always offset the potential downside risks against the potential upside. In Vanstar’s case, this boils down to the question ‘what would be the minimum value of a 20% stake in a 3.2 million ounce (and growing) gold project in Qubec where exploration activities are currently fully funded by a senior producer?’.
There’s no clear answer to that question. The price is obviously what a fool wants to pay for it. But it seems more likely than not that the fair value of Vanstar exceeds the current market capitalization. Investors will have to be patient as IAMgold is diligently working towards de-risking the project. The assay results from this summer’s ~10,000-meter drill program should be out soon and the drill results from the East and West Extension will be interesting as any exploration success there could once again change the scope of the project.
Vanstar Mining will be active on several fronts this winter, and throughout 2022. And we will obviously keep an eye on the exploration results and their significance as they roll in.https://caesarsreport.com/freereports/CaesarsReport_2021-11-17.pdf