Post by
ALLEN4 on Jun 30, 2013 11:22am
TFSA opportunity
I am using this stage in VTR development to acquire cheap shares in my TFSA. Current prices would suggest Kiaka and indeed Volta itself has no value. If you believe otherwise, that we have a future and that Kiaka will be a mine one day, then this is a great opportunity to create some serious wealth. At current share prices $16,000 will buy you a 100,000 shares. We get back over a dollar and you have 100 grand in your TFSA. Withdraw the money without paying tax or continue to build it to a million for tax free withdrawal at that time. I saw the comment that we need $1375.00 to be profitable. Not sure about that. The PFS says that at $1375.00 gold we have NPV of $550 million. But our cost base for a producing mine was around $800.00 as I recall. This is better than the cost bases we are reading about these days for other miners. In any event, we are in the same boat as all other mines and at some point the POG is such that its not worth producing, which leads to mines closing, which leads to shortage of supply, which leads to higher price - so it is self-correcting over time if you are patient. No news yet on Gaoua but I think it will play a role in our survival in the next year or two if in fact the POG remains at lower levels. Prior to putting it up for sale, Kevin had been talking about joint venturing a project on that property, and that could be an option. I have been watching the headlines on Gold over the past six or seven years and its amazing how they go from extremes to saying the gold sector is on a tear to predictions of disaster for all gold investments. Sentiment goes up and down as frequently as every few months. Only a matter of time before there is once again talk of a financial shock to have people rushing back to gold, or comments on inflation, which inevitably will work its way into financial system given the actions of central bankers. Every investment has its day and ours will come. Won't be long now until we get the BFS and it is very likely to be a step up from the PFS. Nice article by Deadlock; this is what the people who are buying VTR are thinking. Those selling are just not thinking, plain and simple.