GREY:VMSTF - Post by User
Post by
GEEEon Jul 08, 2010 2:34am
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Post# 17252760
Valuation
Valuation
A) Reed Lake 1 t ore is worth $ 2000 WOW !
Equivalent of 1.7 oz Au in 1 Tone ( 60- 70 g/ t )
VMS est. 5m ton in JV + the HBM options= $ 1 b in ground.at today's prices
An early gold explorer with similar tonnage and 1/3 the grade equiv. is priced at $ 250 m cap
vs 30 m cap VMS. geeesus ,investor in which co is the nut here ? So far for efficient markets.
WHAT IS THE POTENTIAL OF EXPANDING THAT RESOURCE by accelerated HUB drilling ?
( HUB exploration budget 2010 = $ 42 m )
The clue for now is this map.
:https://www.vmsventures.com/images2/index_1.jpg
VMS claim area is as big as HUB's. in this mineral province.
So , it can contain as much ore as HUB's
Hubs properties in that area contain 17 mt ore .
So ,we are looking at possibility of expanding VMS -lands resource by 3 times .
Even if HUB will expand it just 2 x to 10mt ore,
the VMS ore has higher value than HUB's.
The VMS Cu proportion is 2/3 vs HUBs 1/3 .
Very high grade Cu too ..see the monster hole with 16% Cu ...geeesus.
THIS IS THEIR PLAN - expand the resource 2-3 times
and then form new JV for the bigger area.
Build as big a mine as HUB's flag ship - Mine 777.
At 1/2 cost.
Using HUB's existing concentrators and metal plants.
HUB's only production comes from this province and HUB's cap is 1.4 B $
The expanded future JV can produce as much $$ as HUB is producing now.
Means ,it can have cap of $ 1.5 b someday.
30% that for VMS = $ 450 m from 30 m cap now = 15 bagger.
But that will take years of course.
For now , upon JV , the value of Reed Lake and surroundings should go up from 10 m $
( $ 1 b in ground) to 20 m$ ( 1/50 of that $ 1 B)
B ) The spin-off of Ni properties into newco with VMS holding 45% stake
shall release more value .
Just a shot : newco cap can be say $ 30m = $ 15 m for VMS
C.) the rest say $ 10m
D) cash 15 m
A= $20m + B= $15 M + C= $ 10 m + D = $ 15 m = TOTAL $ 60 m = 50c /sh
.