report from a german stockletterat the german stockletter "shareribs.com" site you can read a long report (2011/12/08) about vena resources. stock price target for the next 12 months is 0,50 Euro or 0,68 Cad.
here the translated report:
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We would like in terms of Vena Resources (TSX: A0D8VU) bring up to date. The political situation in Peru has improved noticeably. The Mining Act was modified and Humala has proven to be pragmatic politicians. Nationalisation is no longer an issue. Only with the payments of the mining company can implement its social programs Humala. So it is said, can live and live. Vena Resources is incidentally about 400 staff payroll.
The management of Vena Resources has now decided to simplify the corporate structure in order to tap its shareholders significant value. Vena Resources is now the capital market as a kind of "mixture store" perceived - gold silver copper zinc and uranium in today's investors demand but rather "pure plays". Companies that only gold or silver or copper concentrate and so on. To meet this requirement, Vena Resources is virtually divided into three companies.
On 13 December 2011 will be held the Annual General Meeting of Vena Resources. There should be authorized on the spin-off company of the Candelaria Silver Inc.. 85 percent of Candelaria Silver Inc. will then be distributed as a stock dividend to shareholders of Vena Resources. Vena Resources retains a 15% stake in Silver Candelaria, where the projects will be located Esquilache, Pucara, and Lagunillas Andamarca. This is to unleash the undiscovered potential of the respective projects, which are not currently reflected in the share price of Vena Resources.
The shareholders of course continue to keep their shares in the Vena its joint venture partnerships with Trafigura, Cameco Gold Fields and Forrester and continue to concentrate in future on its growth in the area of ??polymetallic will. In addition, the considerable exploration potential Vena Resources on the 22,000-acre area near the Azulcocha mine use and retain its portfolio of precious metal projects in Northern Peru.
Candelaria is expected in February 2012 to carry out its own IPO in Canada and Peru. Vena Resources will instruct the broker M Partners in Toronto, VSA Capital in London and Kallpa SAB in Peru with the planned share placement.
Vena Resources has also joined forces with the Urban Select Capital Corp.., An investment group with offices in Hong Kong, China and Canada, the company Granja Gold Inc.. This company will focus on gold exploration and development in northern Peru. The core of the company consists of three exploration projects in the early stage (Granja Nueva, JR-24 and Masma). Granja Gold Inc. will then perform in the first quarter of 2012, its initial public offering in Canada and Peru.
In return, 10 million shares of Vena Resources Granja gold and also has the option of additional 6.3 million shares Granja gold (earn-out) based on certain factors, which in terms of resources in the categories of "measured" and "Indicated" be achieved and published in a future NI 43-101 report to get. This transaction is expected to be completed by the end of February 2012. In a first step Granja gold is now solicit fresh capital in the amount of $ 2 million.
In addition, the Azulcocha zinc mine in January 2012 will start the production. The latest NI 43-101 report confirms that the project Azulcocha a tonnage of 2.03 million in the categories of "measured" (with an average of 7.8 percent zinc) and "Indicated" (with an average of 7.0 percent zinc With a cut Off-grade should be increased from less than 5 percent of the tonnage material. Meanwhile, Vena Resources has along with his partners invested about $ 18 million Trafigura in the Azulcocha mine.
Production will initially be 100 tons per day, only to be ramped up to the end of 2012 to 1,000 tons per day. For the end of 2013 with a processing capacity of 2,000 tons is planned per day. There could also contribute to six small mines in the vicinity, the additional tonnage. The break-even costs are around $ 0.60 per pound of zinc during the zinc price is currently at about $ 0.90. Analysts expect that the price of zinc is very well developed in 2012/2013.
Outside of controlled Azulcocha Vena Resources also have a large area to 100 percent. To date, more than 30 top quality exploration targets have been identified. The first NI 43-101 report, which should include not only the zinc content, but also results for other metals is expected to publish in January 2012. Good results mean more tonnage for the zinc mine.
Also, investors should not underestimate the potential of the uranium projects of Vena Resources. Vena Resources has the Macusani 5.69 million pounds of uranium oxide project in the highest category of ' inferred"='(' 150=' Bf=' vena='Resources' has='the' macusani='5.69' million='pounds' of='"measured' oxide='project' in='the' highest='category' indicated"='and' 17.4='million' pounds='of' uranium='oxide' category='of' af='Vena Resources hat beim Macusani-Projekt 5,69 Mio. Pfund Uranoxid in der höchsten Kategorie ' measured=', 12.5 million pounds of uranium oxide in the category of ' indicated=' and 17.4 million pounds of uranium oxide in the category of ' inferred=' ( Tonne) entdeckt." closure_uid_8f08h6="151" Bf="Cut-off grade 0.18 lbs / ton) was discovered. " Af="Cut-Off Grade 0,18 Pfund/Tonne) entdeckt.">Cut-off grade 0.18 lbs / ton) was discovered.
A total of Vena Resources has proven so in a small portion of the total area of ??35 million pounds of uranium oxide in the various categories.
The boundaries of the mineralized system have not yet been reached. For 2012, a new exploration program is planned, which will lead to a preliminary economic feasibility study!
Recently, an interesting article on supply deficit could be read in the uranium sector, where Cameco's partner in Vena Resources Macusani project, acquisition of another company's outlook. The Bloomberg article can be found at the following link: www.bloomberg.com
CONCLUSION: Given the fact that Vena Resources is expected to begin in January 2012, the zinc production and in terms of project portfolio seems promising vein share a very low rating. The market value of Vena Resources (TSX: A0D8VU) is around $ 25 million. In the cash still lying 4-5 million CAD. The split into three companies would have a positive impact on the overall value of the vena properties. The bottom line is to pay the cash flow from zinc production, the remaining exploration activities of Vena Resources.
In the forthcoming annual general meeting is not only the distribution of a stock dividend (Candelaria Silver), but also a reverse stock split in a ratio of 2:1 should be approved. We assume that all decisions go through. What can have such a spin-off for positive impact, we can see live at our sample portfolio value Prophecy.
A potential "company makers" should also be the 886-acre Gianderi project, which is located in the La Libertad region, some 35 kilometers south of Huamachuco. About six miles south-east lies the Santa Rosa Gold Mine. Together with other gold mines that are located within, are in the area of ??about 250,000 ounces of gold per annum produced in surface mining. When Gianderi project Vena Resources is in the process of obtaining the necessary permits to start in the first quarter of 2012, the drilling can.
Investors should take the opportunity to reduce the cost of their positions or enter new. Take some time to interview the CEO to listen. It may be worthwhile. We expect in the next 3-4 months near the start of the zinc production with further substantive news. Gold Fields has started its drilling program at the end of October 2011 Amantina project. Results are expected in the first quarter of 2012. For the Pucara project in the first quarter of 2012, also a NI 43-101 report due. Results from Gianderi project should there be time for Commodities Fair PDAC in March 2012.
Buy the shares of Vena Resources (TSX: A0D8VU) and limited in Xetra! The 12-month target price we see at 0.50 €. Please use a mental stop-course.
With best regards,
Your team Profiteer
here is the direct link:
https://www.shareribs.com/rohstoffe/metalle-und-minen/news/article/vena_resources_inc_aktiendividende_winkt_id96585.html