GREY:VITFF - Post by User
Post by
CommiePinkoon Feb 04, 2015 3:42pm
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Post# 23396246
VIT Under Accumulation
VIT Under AccumulationVIT seems to be definately under accumulation lately and it seems like to me the buying is going into strong hands. Since the beginning of this year there have been four 1+ million share days and there wasn't more than seven in all of last year. Shouldn't be surprised though with gold trading near $1600 Cdn and capex costs down from last year. Canadian juniors with hard assets are ripe for the picking.
Doesn't look like it could be Kinross or Sun Valley behind the buying since they would have to be filing insider reports. Who knows maybe we have a good old fashiioned batal royale brewing. Don't kid yourselves there lots of money around. Mining companies have been in survival mode for the last two years and hording cash. So they have to be thinking about the future and putting some of that cash to work. Especially considering you have companies like VIT with great assets trading for a song.
Acording to my back of the envelope rough calculations based on VIT's 2.3 million proven & probable reserves the market is valuing its reserves at $30 an ounce in the ground. And we know there is a significantly larger resource on the Eagle than that. I seem to recall a few years back Kinross paying around $100 oz for the Golden Saddle also in the Yukon. And if VIT's capex where $400 million a year I wouldn't be surprise if they in the $375 million neighbourhood in todays dollars.
In my opinion based on VIT's ounces in the ground its should be worth at least $0.75 to be fairly valued. But of course I'm hoping for substantially more than that. Things could get interesting!