RE:1,000 ounces a month in a very short period of time I have had a look at some of the calculations put forward on this board and agree with the potential revenue numbers that mean only one thing. Huge upside potential. These calculations are also assuming grades of only 1g/tonne. I think if they can find higher grades, this will just be a huge multiplier. I can't believe the miniscule market valuation for this near term producer. I now have a very substantial position in place (which took a long time to build) and I am just going to let it stew on the back burner for the next 6-12 months. It should be trading at much higher levels just on the growth story and start of actual production. Who ever gets a chance to find a stock with this low a market cap and a near producer? Very rare.
I did a rough comparison to Northern Vertex (VEE) , which generates $27mm in revenue per annum, produces 14,763 oz Au per annum and has a market cap of $163mm. If VQA can produce 12,000 ounces per annum within the next 12 months, then VQA's market cap should be in the area of $163 mm X 12,000/14,763 = $132 mm. That works out to be a 34 times increase from current levels ($132 mm/ $3.2 mm (current mkt cap) = 34 times). Apply that increase to the share price and that works out to 34 x 0.085 = $2.90. Yowza.
All I can say is get as much of this stock that you can get your hands on and just tuck them away for 6-12 months. Let the operations mature, get a resource calculation in place and start pumping out gold. That in itself will see a huge revaluation of this company. If they can then find higher grade gold > 1g/tonne and more deposits, this has winner all over it.