GREY:VITFF - Post by User
Comment by
MVargason Apr 04, 2018 12:59pm
158 Views
Post# 27829719
RE:RE:RE:Sun Valley is the culprit
RE:RE:RE:Sun Valley is the culprit Sun Valley has not sold any shares in their client accounts for less than 39 cents and are not responsible for the new multi-year lows.
And to reiterate, they have never sold a single share in their wholly owned Master Fund.
At a share price of 33 cents VIT has a market cap of $170 million or one-third of what Goldcorp paid for Coffee.
When/if the financing closes and 250 million shares are issued at 50 cents, VIT's non-cash assets willl be valued at $108 million. Shares at 33 cents today will prove to be a gift.
A marginal project at $1350 gold? I beg to disagree. When in production, $1350 gold will generate cash flows of $125 million per year.
Fast forward 5 years:
Assume 20% increase in cash costs and the POG (probably very conservative). POG = $1600 and AISC = $850.
VIT will then be debt free and generating free cash flows of $150 million per year or $100 million in after tax earnings. That equates to a $2 billion market cap at a p/e of 20 and a share price of about $2.40 with 850 million shares o/s.