Fundamental & Technical Analysis - View Resources Ltd (VRE) (1 Viewer)

[Cyph]

One to put on the watchlist. The stock has been a dog for a while, but this could be changing... VRE has been mining and selling nickel and is about to start gold production from its Bronzewing mine.

The Bronzewing site should start producing gold by about july/aug
this year producing 100,000oz @ US 450-500 an oz.

Bronzewing which was purchased for 9 million and now fully paid includes a gold mill, 4 large workshops, airstrip, accommodation and housing for a township, more than enough to accommodate the whole bronzewing staff. To replace this at todays prices would be approx. 100-130 million (more than VRE's market capitalisation of ~$35 million). Just the gold mill would be approx 20-30 million. The mill is in excellent condition.

The Bronzewing site contains approximately 700,000 oz of gold with an estimated mine life of approx 5 years.

The company has no debt, $3 million cash in the bank with good management - the CEO is ex WMC and North Ltd. The company picked up gold processing equipment cheaply.

Also some major instituations may also be joining the top 20 shareholders. This is a 12-18 month hold that should see considerable up side based on the fundamentals IMO.

Like always, this is not a recommendation, please DYOR and consult a qualifiied financial advisor to take into consideration your needs.

PS. I hold.

 

[blue_chameleon]

Looks promising.

Where did you get the background information on the company from?
Also, how long have you been trading for?

 

[Cyph]

Most of the info. can be found in the company reports. The info. came from there + a mate of mine who speaks to the CEO via email/phone.

I've been trading/investing for about 18 months now. Do you trade?

I've got a couple of others to put up as well, one of which is MAE - I've got so much info. on it to summarise it's not funny. It makes up over 50% of my portfolio for a reason.

 

[blue_chameleon]

Yeah, im just paper trading in options at the moment. Been so for around 3 months with OptionsExpress.

Having a lot of fun learning as well.

 

[Cyph]

cool, can you put some of your paper trades up if you get a chance? I'd be interested to see them.

I've had a brief look at options, but not gone too in-depth with them.

 

[blue_chameleon]

Yeah, that shouldnt be a problem. I will try and get them up when I get a chance.

 

[UGFighter]

Annoucement out today says an increase of 88% of their reserves at Cockburn.

The gold reserves are definitely there, this is definitely going to be a goer in my eyes... it's just a matter of waiting until they start mining to get the cash flow going. Once that happens, it should be re-reated in excess of 40c easily.

 

[UGFighter]

Share price hasn't really moved.. However, if you look at the oppies where I think the smart money is, I see one small $3k parcel for 20 000 shares at 14.5c, but apart from that you have to go to 15c to get a piece of the oppies.

PS. I hold the oppies.